CAFTA to benefit US Consumers

[zendari]

Text

WASHINGTON - U.S. shoppers should get a price break on shirts and pants made in Central America. American farmers and manufacturers are hoping to gain new sales in the region. U.S. sugar growers, however, are fretting about increased competition now that Congress has passed and sent to the president a trade deal that eliminates barriers between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.

Most analysts predict that the political fallout from the Central American Free Trade Agreement, which President Bush plans to sign on Tuesday, will outweigh the economic impact. They note that the six CAFTA countries have economies that are very small in comparison with the U.S. economy.

The debate over the pact was the most contentious free-trade fight in Congress in more than a decade.

The U.S. International Trade Commission, which did the most extensive study of the agreement, found that it will have a tiny but positive impact on the U.S. economy ? a gain of 0.01 percent in output in an $11 trillion economy.


This is definitely good for all americans, rich or poor.

 

[boredhokie]

This is just the logical progression, its not like South America is new to getting screwed by the US. At least the Beefy T's at wal-mart will be 20 cents cheaper now!

 

[RightIsWrong]

Just what is the ratio of consumer goods made in the CAFTA nations as opposed to those made in, say China, Taiwan and Korea? What is this projected savings supposed to amount to per capita? Will I save enough to get a grande mocha?

 

[nergee]

This "tiny but positive impact on the U.S. economy" will result in how many working stiffs losing their jobs for "a gain of 0.01 percent in output in an $11 trillion economy"?

 

[Amused]

Originally posted by: nergee
This "tiny but positive impact on the U.S. economy" will result in how many working stiffs losing their jobs for "a gain of 0.01 percent in output in an $11 trillion economy"?

Again, when unskilled labor prices themselves out of a market, who's fault is that?

 

[nergee]

With the labor component of a products costs running around 10-15%, it's not the average Joe pricing themselves
out of a market........

 

[Smaug]

Originally posted by: Amused

Originally posted by: nergee
This "tiny but positive impact on the U.S. economy" will result in how many working stiffs losing their jobs for "a gain of 0.01 percent in output in an $11 trillion economy"?

Again, when unskilled labor prices themselves out of a market, who's fault is that?

If by pricing themselves out of a market you mean not willing to work for 25$ a week then gee, I guess they are.

You know, we aren't a purely capitalistic society, and that's a good thing. The reason why it's good is we can say, Hey! We want our people to have decent wages, decent hours, and workplace safety regulations. If another country ignores those to cut costs, then sells us the goods, we should not purchase them. We are rewarding money leaving the country, and we are rewarding exactly that which Americans said they were against here.

 

[Amused]

Originally posted by: Smaug

Originally posted by: Amused

Originally posted by: nergee
This "tiny but positive impact on the U.S. economy" will result in how many working stiffs losing their jobs for "a gain of 0.01 percent in output in an $11 trillion economy"?

Again, when unskilled labor prices themselves out of a market, who's fault is that?

If by pricing themselves out of a market you mean not willing to work for 25$ a week then gee, I guess they are.

You know, we aren't a purely capitalistic society, and that's a good thing. The reason why it's good is we can say, Hey! We want our people to have decent wages, decent hours, and workplace safety regulations. If another country ignores those to cut costs, then sells us the goods, we should not purchase them. We are rewarding money leaving the country, and we are rewarding exactly that which Americans said they were against here.

Labor is a commodity. The labor market in the US IS pure capitalist. With the exception of the minimum wage (excluded from this discussion since the workers we are discussing make far more), NO wages are set by the government.

Your argument is irrelvant and moot.

Wages are set by supply and demand, and union negotiation. NOT regulation. The demands set by the labor unions have priced unskilled labor in America out of jobs now that the market has expanded into countries with cheaper workforces. If they want to continue their lifestyles, they need to gain a skill. It's that simple.

ANYONE can work an assembly line. Even a trained monkey. To think that such unskilled labor is worth as much as a job requiring a four year degree and years of training is absurd. Now that companies have a broader field from which to pull labor, the labor unions have fscked themselves.

It's only too bad we can't outsource supermarket checkers in CA so we could end their absurd salaries for unskilled labor as well.

Want decent wages and decent hours? Gain a skill and make your labor worth more. Want safety? Choose to work for companies that focus on safety.

Stop relying on government to nanny your every need.

 

[Harvey]

That sucking sound you hear is the rush of more American jobs being sucked into sweatshop economies where the workforce can't afford to buy the "American" brands they'll be making for pennies a day.

 

[zendari]

Originally posted by: Smaug

Originally posted by: Amused

Originally posted by: nergee
This "tiny but positive impact on the U.S. economy" will result in how many working stiffs losing their jobs for "a gain of 0.01 percent in output in an $11 trillion economy"?

Again, when unskilled labor prices themselves out of a market, who's fault is that?

If by pricing themselves out of a market you mean not willing to work for 25$ a week then gee, I guess they are.

You know, we aren't a purely capitalistic society, and that's a good thing. The reason why it's good is we can say, Hey! We want our people to have decent wages, decent hours, and workplace safety regulations. If another country ignores those to cut costs, then sells us the goods, we should not purchase them. We are rewarding money leaving the country, and we are rewarding exactly that which Americans said they were against here.

Nobody's forcing you to buy cheaper products.

 

[DanceMan]

Originally posted by: zendari
...
Nobody's forcing you to buy cheaper products.

True, but if wages (really purchacing power) is lowered, then individuals will naturally seek lower prices as a by-product.