NAFTA for Dummies

Updated: Apr 6, 2018




By: Jake Morphonios


If you’ve ever wondered how America went, almost overnight, from being a global manufacturing giant to being a country with almost no manufacturing jobs (because the jobs were sent overseas), then wonder no more. So-called “Free Trade Agreements” are responsible for the destruction of our manufacturing sector.


The North American Free Trade Agreement (NAFTA) is an agreement between the nations of Canada, the United States and Mexico. This trade agreement was brought forward by New World Order puppet President George HW Bush and was implemented by his successor, “Slick Willy” Bill Clinton.


NAFTA ushered in a period of decades in which 1) the US manufacturing industry was decimated, 2) unemployment increased, and, 3) the loss high wage jobs previously held by middle class workers led to a significant decrease in the middle class and an increase in the lower class.


The impact of a diminishing middle class over the last two decades wasn’t apparent to most people while it was happening. The image that comes to mind is the proverbial frog in a pot of water that doesn’t notice the gradually increasing temperature. But in the aftermath of the Great Recession of 2008, the changes in the economic demographics have become glaringly obvious. I’ll explain.

Up until NAFTA legislation was passed in the early nineties, the USA had been enjoying a trade surplus.


What is a trade surplus?


A trade surplus happens when the other nation buys more of your stuff then your nation buys from theirs. So, let’s say the USA and Mexico are doing business with each other. We buy goods from Mexican companies that were manufactured by Mexican workers and they buy goods from US companies that were manufactured by American workers. If both nations are buying roughly the same amount of goods than there is a trade balance. A trade surplus happens as a result of inequality - where one nation is buying more products from the other.


Why is a trade imbalance bad?


In our example let’s say that Mexico is buying more things from American businesses than we buy from Mexican businesses. This would result in money flowing into the pockets of American workers – which, in turn, strengthens our overall economy. A trade surplus keeps more money inside our country. It increases job security for all those Americans working for the companies that are producing the goods. And, this helps to keep middle class America strong and vibrant.


But on the flip side, a trade deficit would occur if Americans were buying far more products from Mexico than Mexico is buying from our American companies. A trade deficit is bad because American money is being sent outside of our country rather than circulating inside our own economy. NAFTA created conditions that resulted in a massive trade imbalance. That has hurt the American economy very, very badly.


NAFTA, along with other globalist schemes perpetrated by the globalists, using organizations like the World Trade Organization, ended up gutting the American manufacturing industry like a fish. Because of these agreements, our corporations started sending previously-held American jobs overseas. Under globalist free trade agreements, the practice of sending jobs outside of the country became incentivized by the government.


Jobs that American citizens had always relied on were sent to places like China – where the same products could be manufactured much cheaper. Some of you will naturally ask what is wrong that. If I own a company, and I can to make a product cheaper for my customers that is cheaper than the competition, we all win. Right? Not so fast. Cheaper stuff is not necessarily a good thing.


Take the situation with China, for example. China doesn’t function like the USA. The communist-controlled government uses their workers as slave laborers. Almost all of the junk that we buy from Wal-Mart is cheap because it is manufactured by workers who are barely paid enough to survive. If you have never seen a Chinese sweatshop where toys or electronics are manufactured, just think of factory farms where thousands of chickens are crammed into tight quarters. And it isn’t unusual for sweatshop workers to be forced to work for up to 14 hours per day, 7 days per week.


On top of that, because there are such poor environmental regulations, China’s factories have poisoned the air, the soil, and the water to such a catastrophic degree that Chinese citizens are dying just from breathing they’re regular, outdoor air. Drinking water is so toxic that it is making them sick.


To be candid, I like to buy my goods at the lowest price I can as much as the next guy. If I can save a few dollars, I’ll do it - but, I don’t want to pay less if the cost is the dignity or health of my fellow man. I would rather pay more money for something, or simply do without the item, than to have the privilege of buying something at a lower cost because my brothers and sisters in some foreign country are being exploited and abused by powerful corporations or governments.


And besides the inhumanity of all this, the massive trade imbalance is bad for Americans because cheap junk from China is only possible if first we fire those Americans who had the jobs being manufactured before. The overall result of this ongoing trade deficit is a shrinking middle class in America. The vast amounts of profit that is being made by some our major corporations is not filtering down to American workers. Remember – many of these once-American manufacturing jobs have been shipped overseas.


If the massive profits aren’t going to the American workers or to the slave laborers who replaced them, then who is reaping the windfall?


The money that we’re spending on all this cheap crap is either going to the communist regime in China, or it is going to the fat cats sitting at the top of the corporate food chain. In the case of the Chinese government, what our Wal-Mart dollars are funding is the rapid buildup of a massive communist military apparatus that is almost on par with our own American military. American consumers have unwittingly financed the rise of a red dragon that can stand toe to toe with us when it comes to warfare.


And back home in the USA, the traditional blue-collar worker what used to be part of the middle class has now been forced to look for new jobs that inevitably pay less and less. Meanwhile, the filthy rich (the 1% we hear so much about) gets richer while the poor get poorer. And in the process, the whole middle class is gradually eliminated as its income declines.


This is called wealth transference. You can’t take much money from the poor because they don’t even pay taxes anymore, so the money is taken from the middle class. It is the middle class that pays the taxes that the politicians redistribute to corporations in the form of corporate welfare. In the process, though, the middle class, being too high on the economic scale to receive welfare subsidies from the government, gradually slips further and further down until it merges with the lower class. Those in the lower middle class realize that if they simply accept a little less in earnings, they will qualify for various forms of welfare assistance, including food stamps, and will no longer have to pay taxes.


This may all sound cynical, but it’s the reality of the situation we are in. Roughly 50% of the people in the United States are on some form of government assistance. That is a shockingly abysmal sign of just how poor Americans have become.


There are competing solutions to this problem. On the left, the liberals and progressives say they have a solution. Leftists like filmmaker Michael Moore argue that capitalism itself is to blame and therefore the solution is to turn to socialism – which is absolute stupidity. Socialism is a major step toward communism. We don’t want to go there.


But on the right, Republicans can be just as foolish when it comes to the issue of economics. They defend these corporate kingpins and financial predators, calling them “job creators”. I suppose that is true, in a roundabout kind of way. They are creating jobs - but those jobs are going to serfs and peasants in foreign countries. It’s not American jobs that are being created.


For true capitalism to work as it is intended to do, there must be a degree of morality involved in the administration of the system. Capitalism is nothing more than a tool. It’s a neutral device. On its own, it’s neither good nor bad. It can’t do good things or bad things on its own. Capitalism is controlled by people, so the integrity and values of the capitalists and their customers really does make a difference in how capitalism is applied in real world situations.


If getting rich is the sole objective of a corporation – to make officers and shareholders as rich as possible without regard to HOW the riches are obtained – the inevitable result is going to come with negative consequences to a large number of people. Those that benefit the most are those that get the greatest share of wealth, while those at the bottom who do all the work benefit the least. That is the nature of unbridled capitalism, which Karl Marx railed against in his writings. But contrary to the arguments of Marx, the answer is not to throw away capitalism and turn to the totalitarian controls of communism.


Instead, consumers in a capitalist society must demonstrate their own morals by insisting that companies engage in ethical business practices – for example, not using slave labor to manufacture cheap goods. And, consumers must be willing to pay more for products that are manufactured by American workers over the lower cost items produced in third world sweatshops.


Capitalism is the best economic system in history, bar none. A company run by people who engage in fair, community-minded business practices and that value their workers as valuable resources can be a blessing to society. Without such ethics and morality in business, the company can be a curse to society. This is the same conundrum that faces us politically. Our constitutional republic is a system that is, by far, the most effective in the world – but, as James Madison, the chief architect of the US Constitution said, for our system to work, the people themselves must be moral.


Without morality, whether in business or in government, we will not be successful in the long-term. And free trade agreements like NAFTA strip the morality away from the trade practices by removing decisions far away from the average citizens at the bottom and putting all decision-making power into the hands of sociopathic elites sitting at the top of multinational corporate power pyramids.


So, let’s talk just a little bit more about NAFTA. The agreement has not only helped to kill American jobs, but it has also had the same effect on the Canadian and Mexican worker.

When did the illegal immigrant invasion from Mexico begin? Yes, we’ve always had immigrants coming into the United States since the inception of our nation, but I’m talking about this unprecedented, massive influx of immigrants from Mexico that has radically altered the demographics of the USA. The answer is that the wave started in the 1990s and it happened as a result of Mexican workers losing an unprecedented number of jobs due to NAFTA.


Mexico had always been able to grow and sell corn cheaper than American farmers, and many Mexican workers were employed in the corn industry. But under NAFTA, US agricultural mega-corporations began to engage in a practice called “corn dumping”. Instead of importing corn from Mexico, US corporations started exporting corn to Mexico at cheaper prices to undercut their market. In the process, it killed the Mexican corn industry and cost them countless jobs. Waves of unemployed Mexican workers began crossing the border in search of jobs from American companies. And, the American companies were only too willing to can their American workers and pay lower wages to the indigent Mexican immigrants – a practice that continues to this day.


But how could these American corporations afford to undercut the competition and put them out of business in the first place? The answer is that NAFTA trade policies resulted in government subsidies to the US corn industry. The truth is that, on their own, the American companies could not compete with the Mexican corn industry. But what happened is that the US government allowed the American companies to sell corn to Mexico at huge losses and then took US tax dollars from the middle class to dole out to make up the difference so that the American corn companies were able to break even or profit.


And it wasn’t just the corn industry that the middle class was forced to subsidize. Many other agricultural mega-corporations that produced other staples were also given this same sweet deal. Collectively, this resulted in brutal body blows to Mexico’s agricultural industry that caused it to flat-line.


As was reported by the New York Times in 2013, this quickly put over two million Mexican farmers out of work and led to the migration of half a million unskilled laborers across the US border each year since NAFTA was enacted.


With mass unemployment came a skyrocketing poverty rate in Mexico. This resulted in a massive spike in organized crime as unemployed workers looked to other work opportunities. If you don’t think that the poverty level in Mexico matters to people in the United States, consider the cartel crime, drug running and human trafficking operations that have grown out of this economic disaster.


Before we blame the Mexicans for everything, we should take an honest look at the role that globalist free trade policies have played. Because what happened to Mexico is also happening to America, albeit at a slower rate. But rather than the Mexican economy being ruined by the United States this time, what is happening is that the United States economy is being plundered by China. A huge trade imbalance exists as Americans are importing an unprecedented volume of Chinese goods while China is refusing to reciprocate. Just as multinational corporate vampires used the USA to suck the blood out of Mexico, they are today using China to suck the blood out of America.


Free trade agreements with China are ruining our economy. Yes, we are getting some cheap junk right now and we have the appearance of prosperity, but the truth is that we are financing our own demise. For example, did you know that you can go on eBay right now and get thousands of different products mailed to you direct from China without any shipping fees? A small business owner talked about how this is killing his business. He produces a product in New Jersey called the “Mighty Mug”. It costs $6.30 through the US Postal Service to ship a Mighty Mug from New Jersey to a customer inside the United States. But, China created a knock off of the Mighty Mug which it sends to customers in the United States for $5.69 with free shipping.


How is this possible?


Under free trade policies, China is given preferred shipping prices that undercut the shipping costs charged by the US Postal Service. The USPS loses money on each product from China that is shipped to American customers. But they continue to do business with China because subsidies from the US government cover the financial losses. And where does the money for the subsidies come from? Just like with the subsidies to the agricultural corporations, the USPS subsidies come out of the pockets of middle class working Americans. And to add insult to injury, if Mighty Mug tried to ship one of its products to China they would pay the full shipping cost, which is around $22 per mug.


Now can you see how impossible it is for America to compete with China? Are American workers benefiting from these free trade agreements? It depends on which Americans you are talking about. For the corporate officers of multinational companies and the American investors whose only concerns are for their own personal enrichment, free trade is awesome. There is a heck of a lot of money to be made when you don’t have to worry about the consequences of unbridled greed.


But for the average middle class American, these free trade agreements are like malignant cancer. They are a form of terminal illness that must be cut out of the body as quickly as possible. The solution is not to do as the president is suggesting, which is to renegotiate free trade agreements like NAFTA. The solution is to withdraw completely and entirely from NAFTA and never go back. Renegotiating NAFTA is like renegotiating Obamacare. Even if you renegotiate it, the thing is still there. The proper course is to kill it, dead.


To the issue of the trade imbalance with China, the president has correctly identified some of the problems that must be addressed. If we are to preserve our economic independence and not end up used and cast aside after the middle class has been sucked dry, we must correct the imbalances.


There are different ways to do this. Some are good. Some are not. Starting a trade war with China is not the right way to handle the issue. President Trump’s administration has added tariffs, which are essentially taxes on imported goods, to several foreign products, including steel. China has been significantly impacted by these tariffs and has responded by placing its own tariffs on many goods produced in the United States.


The problem with the president’s tariff fight is that China is the one that is in a position of strength. They can afford a long-term trade war much more easily than we can. Not only that, but China holds the trump card, no pun intended. After the US Federal Reserve Bank, the communist government of China buys more US treasuries than any other source in the world.


Our economy is entirely debt-based. What that means is that the only way our economy can keep from having our bubble popped and deflated is to continue increasing our amount of debt. Even if the president were to hurt China with tariffs, they always have the ability to simply stop buying US treasury bonds. That would be the economic equivalent of a thermonuclear bomb being detonated over New York City. We would not survive it. So, while I do not disagree with the president’s desire to protect American workers from China, a trade war will only make matters worse. If the president truly is a grand deal-maker, then now is the time to start deal-making!


There is much more we could discuss on this subject, but I hope that this information gives you a basic introduction to free trade agreements and why they are bad. The only people who truly benefit are those wicked people in multinational corporations and the bankers who fund them. These people are not loyal to their own countrymen because free trade thrives off of exploitation of the masses on each side of the agreement.


If we believe in the principle of America First, we must put an end to the unconstitutional free trade agreements of the New World Order globalists. It’s time to expose them to the light of moral business practices, to hang garlic around their necks and drive wooden stakes through their unfeeling hearts. Only then can will we be able to Make America Great Again.


Sources:


https://migration.ucdavis.edu/mn/more.php?id=24_0_2_0


https://www.wsj.com/articles/this-subsidy-for-china-is-dumb-as-a-post-1517963275?ns=prod/accounts-wsj


https://www.nytimes.com/roomfordebate/2013/11/24/what-weve-learned-from-nafta/under-nafta-mexico-suffered-and-the-united-states-felt-its-pain

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