With the economy facing the first real recession in almost two decades, both Senators Hillary Clinton and Barack Obama took the opportunity to pander to the local Ohio audience in a debate last week criticizing what they believe is the root cause of the problem, NAFTA:
Clinton and Obama, as their rhetoric suggests, operate under a flawed assumption that 'NAFTA causes of job losses.' It is an assumption that ignores the dynamism of American economy and overlooks fundamental principles of economics. The Democratic solution of economic isolation would undermine the entire North American economy and plants a dangerous idea in the American ethos.
Creative destruction, while running counter to the inherent conservative tendencies of the average person, is a real force that has driven not only the American economy, but the global economy, throughout history. A failure to accept this principle and attempts to counteract it only result in a stagnating economy and high unemployment. Western Europe is the quintessential example of this phenomenon where governments at all levels actively try to protect sectors of the economy in the name of preserving culture and tradition (sound familiar?).
Creative destruction results in higher efficiency, and efficiency breeds competitiveness. It brought us automated teller machines which have supplemented human bank tellers. It brought us automatic telephone switchboards which completely eliminated the jobs of switchboard operators. And today, it threatens to make the American industrial sector competitive once again.
Blaming NAFTA also ignores one of the biggest technological innovations of the 1990's: the Internet. The Internet has fundamentally changed the way of life of the average American. We can now shop, get our news and information (and dose of advertising), and be entertained without having to leave the comfort of our computer chairs. There are businesses which are entirely Internet based, and starting and promoting a business or idea has become easier than ever.
Economic isolation the easy answer to a tough political question.
NAFTA is to blame for the Recession. Ever since NAFTA was Created, Millions of Factories were Closed and Millions of jobs were shipped overseas and out of the United States. Just Ask Lou Dobbs of CNN.
When NAFTA was created, Factories closed so that Greedy Evil Business Owners could do business outside the United States without having to pay taxes on their goods, they could get cheap labor from foreign countries, and because trade was free their were no tariffs on Imported and Exported Goods.
This means that Wal-mart Capitalized on this Agreement and got great deals from China. That is why most Wal-mart goods are cheap.
Basically due to Greedy Business ownership, and the NAFTA Agreement, our nation has gone to Hell in a handbasket. We have been Sold Out as a Nation to the Wal-mart Economy. Our American jobs have been sold to China, India, Mexico to name just a few.
Want to know why millions of homeowners couldn't afford to pay their mortgages?, look at NAFTA. Jobs in the United States have been few and Scarce ever since they Exported our American Jobs outside of the United States.
Many Selfish and Greedy Businesses Owners thought NAFTA was a good idea, when in reality it caused people at home without jobs to not be able to afford their mortgages. Suddenly the Banks are losing money and we are now in a terrible recession.
We have George Bush to thank for this 2009 version of the 1929 Great Depression. He filled his pockets with the money from his own private oil companies by letting our Gas Prices get out of control. It also didn't help that he let all those Illegal Mexican Immigrants cross the border either.
Lets hope that people and Greedy Business owners will quit selling out the American Public. Because no one in America can make money or pay for their mortgages if your job gets Outsourced to another foreign country.
But don't complain to me, ask Lou Dobbs of CNN. I Believe the man is right, because our Economy is showing that the Economy has taken a very bad hit from mortgage owners who have been unable to pay their bills.
Posted by: Anonymous | January 30, 2009 12:38 AM | Permalink to Comment