Tag Archives: NAFTA

How NAFTA Works

From Bloomberg

Global trade involves a complex web of cross-border journeys, seamless and often invisible to American consumers. As President Donald Trump seeks to rewrite Nafta and other trade accords in an effort to bring jobs back to America, he would do well to follow the meandering path of a single lowly capacitor, a pinkie tip-sized component that stores electrical energy.

Its journey illustrates how U.S. manufacturers rely on numerous border crossings and thousands of miles of travel to produce goods at the low cost and high quality that customers demand. Nafta, in particular, allows goods to travel back and forth to Mexico with minimal delay and at no cost.

Of course while the graphic is cool and the article makes sense to most of us, Trump hates it.  He wants EVERYTHING to be made in the United States and doesn’t realize that it was automation and globalization that changed manufacturing forever, not NAFTA.

I don’t understand Trump voters.  On one hand, they hate NAFTA and blame it for everything but then line up for deals at Walmart to buy goods that almost all made in China.  Why?  Because it is cheaper.  It’s that behaviour that is killing manufacturing in the United States, not NAFTA.