On the 222nd
anniversary of this nation's independence, it brings me
no joy at all to report the following.
Manufacturing,
and its high-paid jobs, no longer stands as the biggest employer
in our country. General Motors is now the largest employer --
in Mexico.
"Since
1978, General Motors has built more than 50 parts factories
in Mexico, which today employ 72,000 workers, making its parts
subsidiary, Delphi Automotive Services, Mexico's largest
private employer," writes Sam Dillon in The New York Times.
In Matamoros, "thousands of Mexican workers earn $1 to
$2 an hour producing instrument panels and steering wheels for
GM cars and trucks." The move to Mexico has become a target
of UAW charges that GM is "putting America last."
In Juarez
alone, there are 18 Delphi plants. Across from Juarez, in El
Paso, Texas, the Times' Sam Howe Verhovek writes, "Four
years after NAFTA lowered trade barriers, the cities along Texas'
long border with Mexico that had hoped to benefit are struggling
to become more than glorified truck stops as they watch their
manufacturing jobs go south by the thousands." Unemployment
in the border towns is higher than in Juarez and two to three
times the U.S. average.
Ford, Chrysler,
Mercedes and Volkswagen are also moving to Mexico. One might
conclude, then, that all manufacturing that requires large pools
of labor is going to leave America. U.S. workers cannot compete
with Mexicans who earn $1, $2 or $3 an hour.
So NAFTA
has guaranteed an endless hemorrhaging of our manufacturing
base out of the United States, while the low-paying service
jobs that are left can always go to a virtually endless number
of new immigrants. What then happens to native born Americans?
And what
about unlimited free trade, a policy never supported by our
Founders?
The US is
now running a merchandise trade deficit of nearly $260 billion
a year, and accelerating. Last year's trade deficit in goods
came in at just under $200 billion. Through these gigantic deficits,
and World Bank and IMF loans, America is shoveling money out
to nations that are capturing ever-larger shares of our home
market. Asia has now begun to gear up to "export its way
out of recession." Those exports are coming our way.
Emeritus
Professor David Landes of Harvard, in a book being universally
hailed, "The Wealth and Poverty of Nations: Why Some Are
so Rich and Some Are so Poor" compares us to Holland of
centuries ago: "As branches of manufacturing have shrunk
before foreign competition, enterprises have discharged redundant
labor or moved to lower-wage areas. New workers cost less than
old. ... Poor immigrants have kept coming. Unions have struck,
sometimes only hastening plant closings or transfers of orders
to cheaper suppliers."
The British
also embraced free trade as a "matter of faith," an
"economic religion," writes Landes, and rejected all
warnings that their industrial supremacy was vanishing -- for,
to accept that was to accept a "challenge to the sacred."
Sacred to
some, perhaps. To me, it sounds more like the giant sucking
sound.