The common misconception is that the
However, NAFTA is not short of its critics, such as our Democratic candidates and much of the manufacturing industry. Let’s look at the data and some common misconceptions.
3. On average, earnings in manufacturing are higher, and workers in that sector are better off. The figure below shows the real average weekly earnings for different
There has been plenty of time to start training oneself to move out of the suffering industries (manufacturing) and into the higher paying industries (financial services or information). Let’s also note that the only reason that manufacturing pay has stayed so high is because workers are protected by unions (formal agreements to keep wages above a certain level). The labor market trends are here to stay: get out of manufacturing and into finance, education, health, or even construction!
4. NAFTA is bad. No free trade pact can be bad, and as I discussed above, all countries involved benefit. Sure, there are always details to be hammered out, but in the long run, it is a step in the right direction. Case study: one of the causes of the Great Depression (when the unemployment rate rose to 25% and American saving was wiped out) is because of high
Please leave any comments that you may have! Nonthruths
Chart Sources: All data comes from my research, the Bureau of Labor Statistics, the Census Bureau, and the Bureau of Economic Analysis.