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Nafta Vs. Outsourcing Essay

1218 words - 5 pages

NAFTA vs Outsourcing

        NAFTA is an acronym for North American Free Trade Agreement. It was started January 1, 1994. NAFTA was implemented to remove most barriers of trade in Mexico, United States, and Canada. Its goal was to help the counties grow faster economically, create more jobs, and help environmental concerns. Many people have opposing feelings on how well the NAFTA is really doing for each country. Most evidence suggests that NAFTA has not fulfilled its intentions and has only helped certain companies and industries. NAFTA was to help environmental concerns but no real enforcement was made in Mexico to see if they are truly improving their air and water management. The NAFTA was also thought to end illegal immigration from Mexico to the U.S. No laws have changed for immigrants searching for jobs. President Bush's strong enforcement on the boarder also shows how these laws will not be changing in the next four years. Once again these examples show how NAFTA is not living up to its promises. NAFTA hoped to make new jobs in order to surge both countries economies. NAFTA has succeeded in creating jobs in Mexico, unfortunately by taking jobs of the American middle class. These high paid American jobs are being replaced by unskilled laborers for very low pay and little benefits. Much information and data proves that the North American Free Trade Agreement has not worked. Experts feel that NAFTA was a cleaver way for American industries, such as the automotive industry, to practice outsourcing and move their production into a cheaper environment. Thus avoiding U.S. taxes and tariffs, higher paid employment, and offering benefits.

        Outsourcing as defined in the dictionary is the procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs (www.dictionary.com). "Outsourcing works for business executives because it provides a sure-fire way of reducing their costs fairly quickly in an industrial environment that still suffers from excess productive capacity. The excess capacity makes it hard for executives to raise prices. So the surest way to increase profits is to cut costs. And increasingly executives are finding that the most reliable way to cut costs is to outsource more and more work (itnetcentral.com)." With outsourcing more and more work, they are taking jobs away from hard working Americans. This process only hurts our economy by losing jobs while maintaining the set price. If the price of a product would have lowered in proportion to cost, the problem would not be so dramatic. The problem then lies at a gap from the middle class losing jobs to the upper-class making larger profit percentages then before at the cost of those jobs sent out of the United States. Thus, outsourcing is the leading economic problem. Unfortunately, concerns with the war in Iraq and the war on terrorism drew attention...

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