Sunday, February 24, 2008

Benefits of Trade

"Ten years after NAFTA passed, Senator Clinton said it was good for America," Obama said. "Well, I don't think NAFTA has been good for America — and I never have."

Some facts for Senator Obama:

Jobs: U.S. employment rose from 112.2 million in December 1993 to 137.2 million in December 2006, an increase of 25 million jobs, or 22 percent. The average unemployment rate was 5.1 percent in the period 1994-2006, compared to 7.1 percent during the period 1981-1993.

U.S. manufacturing output rose by 63 percent between 1993 and 2006, exceeding the 37 percent increase achieved between 1980 and 1993.

Compensation: Growth in real compensation for manufacturing workers improved dramatically. Average real compensation grew at an average annual rate of 1.6 percent from 1993 to 2006, compared to just 0.9 percent annually between 1980 and 1993.


FACT -- The United States will face job losses as a result of trade.

In my opinion, the United States Government should continue to focus on growth rather than the populist message of "I will bring back your job". The return of the manufacturing industry lost as a result of globalization will not benefit the United States. Senator Obama should listen to his donors, i.e. Goldman Sachs, UBS, Google, and promote the ability of the United States to provide a well educated workforce capable of providing (high paying) service oriented jobs to the world.

Finally, how could Senator Obama "consistently oppose" NAFTA? I would love to hear your thoughts.

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