NationStates Jolt Archive

Why can't you understand that NAFTA is the reason
companies are leaving the United States???????????

Why can't you understand that NAFTA is the reason
companies are leaving the United States???????????
Because it isn't. Minimum wage laws are.

NAFTA has nothing to do with India or China, which is where lots of the (relatively low amount) of outsourced jobs are going.

Because it isn't. Minimum wage laws are.

Nahhh.

Corporate greed. Workers are always overpaid and executives are always underapaid.

But you do have a point. I say abolish the minimum wage laws.

The business owners would be stunned that they can't find "quality" people willing to work for what they want to pay.

Nahhh.

Corporate greed. Workers are always overpaid and executives are always underapaid.

But you do have a point. I say abolish the minimum wage laws.

The business owners would be stunned that they can't find "quality" people willing to work for what they want to pay.
I'm just saying, from a corporate standpoint, is it better to hire an American at $5 an hour or an Indian at 50 cents a day?

I'm just saying, from a corporate standpoint, is it better to hire an American at $5 an hour or an Indian at 50 cents a day?

Sure. However, in the overall scheme of things. If the average american is making significantly less, how does that improve things long term?

Never mind the fact that if a significant amount of people remain out of work for long periods of time, then that means new taxes.

Corporate greed. Workers are always overpaid and executives are always underapaid.

That makes no sense whatsoever.

Nafta has very little to do with it. There was a net job gain in the first six or seven years after Nafta.

Currently most US (and Mexican) jobs are leaving for India and China, countries not in Nafta. If anything, I would say that Nafta has helped keep some US jobs.

The less you pay your workers, the less will be put back in the Economy. By establishing minimum wage laws you are ensuring that your economy will continue, as your citizens will actually have money to spend. Its a cycle. Soon China will enter this phase.

The less you pay your workers, the less will be put back in the Economy.

Unless they have no choice otherwise and you can continue to screw them into poverty while maximizing profits as far as you can go.

The less you pay your workers, the less will be put back in the Economy.

Where does it go otherwise?

You pay them more, but then you have to raise prices.

No. If you decrease wages, people will begin buying only the nessessities, and unable to buy more luxury items. Its really quite simple.

Also, NAFTA encourges business in North America... what with the free trade and all.

Sure. However, in the overall scheme of things. If the average american is making significantly less, how does that improve things long term?

Never mind the fact that if a significant amount of people remain out of work for long periods of time, then that means new taxes.
The bigger question is who is supposed to buy the products if they don't have a reasonable income? The Indian who makes 50 cents an hour? I don't see them buying a new Ford for $25000.

Exactly. But as minimum wage laws are introduced, soon they will have powerful purchasing abilities, and they will become like the USA. The USA will slowly decline, and etc. Its a cycle. You got India on one extreme, USA on the other, then China in the middle, since they are now progressing.

Just remember people don't stay forever in low paying jobs, its the same case in India and China.

The bigger question is who is supposed to buy the products if they don't have a reasonable income? The Indian who makes 50 cents an hour? I don't see them buying a new Ford for $25000.

Cars are a lot cheaper then $25,000 in china and india

Cars are a lot cheaper then $25,000 in china and india
Not by much if they are brand new. And even if, the worker making 50 cents an hour will still be unable to buy one. Unless the prices are downsized as well to accomadate the low pay. And then of course the supplier of the car parts and the supplier of the rawmaterials for those parts would have to lower their prices as well.

And thus Von, would move to a new third world country to start a new.

And thus Von, would move to a new third world country to start a new.
You know, relocating everytime when one country gets to expensive, isn't exactly cheap either. And it would become utterly impossible to do so if they lower pay, prices and all.

That makes no sense whatsoever.

Sure it does.

My job keeps me around corporate execs(disclaimer: it is a small amount) and I have heard them all at one time or another talk about how the American worker is paid too much and they complain that they are not paid enough.

That makes no sense whatsoever.
It's economy 101.

I never had a chance to vote on NAFTA, nobody did. It was cooked up under the indescribably-hated Mulroney government, back when Ronnie Ray Gun had America under his spell. Muldoon fast-tracked this through Parliament by grace of an overwhelming majority in the Commons, even though it was as popular as a tick at a cat fancier's club.

NAFTA should've been called, 'SHAFTA', for all the money and jobs that left our nation for parts only too well known.