Remember Those NAFTA Jobs?

Remember Those NAFTA Jobs?

In the 1992 presidential debates, businessman Ross Perot squared off against President George H.W. Bush and Governor Bill Clinton regarding the North American Free Trade Agreement (NAFTA). From the debates, most people remember that Perot talked about that "giant sucking sound" in reference to the sound of U.S. jobs being shipped to Mexico if NAFTA were to be passed.

 

In 2011, an Economic Policy Institute study concluded that the growing trade surpluses as predicted by NAFTA supporters did not materialize and neither did the promised jobs. The study concluded "As of 2010, U.S. trade deficits with Mexico totaling $97.2 billion had displaced 682,900 U.S. jobs. Of those jobs, 116,400 are likely economy-wide job losses because they were displaced between 2007 and 2010, when the U.S. labor market was severely depressed."

 

Thus, Perot's predictions have unfortunately come true. For 2013, Congress is facing the same "free trade" rhetoric that the next proposed free trade agreement is promising. The Trans-Pacific Partnership (TPP) seeks to establish a government regulated trade partnership with Pacific Rim nations, but the consequences will be much worse than just losing jobs.