Ed, More than a million Mexicans went north to the industrial region.
Perhaps this allows them to save the money needed to pay the coyotes to take them across the border. In any event they seem to have decided that however poor conditions are in the factories, they are better than subsistence farming on poor land in the South. And now they are close to the US border. Any Mexican with an ounce of courage would try to work in the US and send money back to his family. The article states that: "From 1993 through 2002, at least 2 million Mexican farmers were driven off their land." This by virtue of the efficiency of American agriculture. Of course it is very efficient and they certainly don't need subsidies. But subsidies are not a part of free trade. They are manifestations of the controlled economy which is apparently preferable to the free market - but of course not to me. If you criticize them, you are criticizing your own policies. Of course subsidies produce surpluses which are dumped at low prices, or for free. My advice would be to abandon them - they are passé as Lawry would say. As controlled economies suffer unemployment, the attention of the modern economist is on "job creation". Modern economists tend to concentrate on production because it is easier than handling consumer affairs. (In any event Loblaw's does it better than any economist.) In Classical political economy, attention is given to the consumer. Consumers are the reason for production. Of course, we are very interested in the distribution of production and are concerned with its directions. How can Mexican farmers be driven off their land? Presumably because Mexicans generally can get cheaper food from the Americans. I would think that cheaper food for 106 million Mexicans adds up to a plus. The article writer kind of forgets to mention that. While free trade and the free market are just, they do not produce a just society. They simply make production more efficient. Rather like machinery. Just as the Luddites would smash machines, so the modern political Luddites try to smash free trade. They are helped by those who enjoy fat profits from import restrictions - deep pockets the Luddites didn't have. These various agreements such as NAFTA are not free trade arrangements. You and I learned about customs union back when. I wonder if the term is familiar to modern economics students. Anyway, that's what NAFTA is - along with these other so-called free trade arrangements. One good thing with regard to the customs union with Australia. Our sugar monopoly wouldn't allow Australian sugar to be imported, but apparently their lamb now gets in. In the last little while some good and not expensive Australian lamb is arriving in the stores. As someone who was brought up as a kid on cheap cuts of lamb - it was the meat of the working class - this is very worthwhile! Harry ********************************** Henry George School of Social Science of Los Angeles Box 655 Tujunga CA 91042 818 352-4141 ********************************** -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Ed Weick Sent: Sunday, February 12, 2006 6:02 AM To: Harry Pollard; 'Christoph Reuss'; [email protected] Subject: RE: [Futurework] NAFTA and Immigration Nice try, Harry, but what the Meyerson article (below) suggests is that the US is creating the very conditions that create illegal immigration and make third world people head for "lifeboat" USA. Whether, as the article states, US agribusinesses are "incomparably more efficient" than agriculture in Mexico is questionable. American farm prices are kept "competitive" by very large subsidies: "The United States paid farmers almost $15.7 billion in subsidies during 2002, and the U.S. Agriculture Department projected $18.7 billion for 2003. Subsidies, which rise and fall opposite market prices, peaked in 2000 at $32.3 billionThe United States paid farmers almost $15.7 billion in subsidies during 2002, and the U.S. Agriculture Department projects $18.7 billion for 2003. Subsidies, which rise and fall opposite market prices, peaked in 2000 at $32.3 billion, the USDA said." (http://www.washtimes.com/business/20031207-114046-8545r.htm) No wonder that American farmers can undersell Mexican corn and pork producers! Ed ----------------------------------------------------------------- ---------- ----- NAFTA and Nativism By Harold Meyerson Washington Post Wednesday, February 8, 2006 Globalized Into Oblivion As long as the global economy is designed to keep workers powerless, Mexican desperation and American anger will only grow. In December the House approved a bill by Judiciary Committee Chairman James Sensenbrenner of Wisconsin that would turn all those undocumented immigrants into felons. It would supersede local ordinances that keep police from inquiring into the status of people coming forth to report crimes or help in investigations. It would help create a permanent underground population in our midst, with no hope of ever attaining legal status. But the most striking aspect of the assault on undocumented immigrants is that it has no theory of causality. Over 40 percent of the Mexicans who have come, legally and illegally, to the United States have done so in the past 15 years. The boom in undocumenteds is even more concentrated than that: There were just 2.5 million such immigrants in the United States in 1995; fully 8 million have arrived since then. Why? It's not because we've let down our guard at the border; to the contrary, the border is more militarized now than it's ever been. The answer is actually simpler than that. In large part, it's NAFTA. The North American Free Trade Agreement was sold, of course, as a boon to the citizens of the United States, Canada and Mexico -- guaranteed both to raise incomes and lower prices, however improbably, throughout the continent. Bipartisan elites promised that it would stanch the flow of illegal immigrants, too. "There will be less illegal immigration because more Mexicans will be able to support their children by staying home," said President Bill Clinton as he was building support for the measure in the spring of 1993. But NAFTA, which took effect in 1994, could not have been more precisely crafted to increase immigration -- chiefly because of its devastating effect on Mexican agriculture. As liberal economist Jeff Faux points out in "The Global Class War," his just-published indictment of the actual workings of the new economy, Mexico had been home to a poor agrarian sector for generations, which the government helped sustain through price supports on corn and beans. NAFTA, though, put those farmers in direct competition with incomparably more efficient U.S. agribusinesses. It proved to be no contest: From 1993 through 2002, at least 2 million Mexican farmers were driven off their land. The experience of Mexican industrial workers under NAFTA hasn't been a whole lot better. With the passage of NAFTA, the maquiladoras on the border boomed. But the raison d'etre for these factories was to produce exports at the lowest wages possible, and with the Mexican government determined to keep its workers from unionizing, the NAFTA boom for Mexican workers never materialized. In the pre-NAFTA days of 1975, Faux documents, Mexican wages came to 23 percent of U.S. wages; in 1993-94, just before NAFTA, they amounted to 15 percent; and by 2002 they had sunk to a mere 12 percent. The official Mexican poverty rate rose from 45.6 percent in 1994 to 50.3 percent in 2000. And that was before competition from China began to shutter the maquiladoras and reduce Mexican wages even more. So if Sensenbrenner wants to identify a responsible party for the immigration he so deplores, he might take a peek in the mirror. In the winter of '93, he voted for NAFTA. He helped establish a system that increased investment opportunities for major corporations and diminished the rights, power and, in many instances, living standards of workers on both sides of the border. Now he and his Republican colleagues are stirring the resentments of the same American workers they placed in jeopardy by supporting the corporate trade agenda. Walls on the border won't fix this problem, nor will forcing cops to arrest entire barrios. So long as the global economy is designed, as NAFTA was, to keep workers powerless, Mexican desperation and American anger will only grow. Forget the fence. We need a new rulebook for the world. >Chris, > >As usual a lot of nonsense promoted by people who have lost some of >their monopoly advantages because of increased trade. The privileged >never like the free market because it provides the best deal for the >consumer - who is everyone. > >Some $431 million worth of US pork went to hungry Mexicans in 2004. >That's 3.5 times the pre-NAFTA amount. During the same time >7 times as much pork went to Canada. > >Poultry exports to Mexico rose 61.5% during the same period. > >Sales of U.S. corn to Mexico increased 175 percent (and fifteen times >as much to Canada). > >Mexico chose to corn imports under NAFTA in order to provide lower cost >food to its increasingly urban population and to ensure sufficient >animal feed. > >Seems reasonable. > >Fresh fruits and vegetables exports to Mexico doubled while the >increase to Canada was 46% - to $1.9 billion! > >The idiot who wrote this piece apparently has a thing for dirt-poor >farmers living near starvation and surviving only because the >government subsidizes them. > >But, remember, these anti-NAFTA pieces stem from people who were more >privileged before NAFTA - but must now give a better deal to American >consumers because of competition. > >So, do I approve of NAFTA? > >Of course not. It's a customs union. I want free trade. The US should >simply drop its close to 9,000 tariffs, its multiplicity of quotas and >anti-dumping laws. Of course it won't because the money bags that >benefit from these restrictions pay well to stop the market process. > >But you know that. > >Harry > >********************************** >Henry George School of Social Science >of Los Angeles >Box 655 Tujunga CA 91042 >818 352-4141 >********************************** > > Sent using cyberus.ca WebMail - http://www.cyberus.ca/ _______________________________________________ Futurework mailing list [email protected] http://fes.uwaterloo.ca/mailman/listinfo/futurework _______________________________________________ Futurework mailing list [email protected] http://fes.uwaterloo.ca/mailman/listinfo/futurework
