Saturday, September 23, 2017

End of Dishonest Accounting in NAFTA?

For years (and years, and years) we've been told that all those jobs which went to Mexico didn't really make a difference to the Glorious Future of America because the 'value-added' component was tilted towards the US.  (Of course, that lost job meant something to the family whose breadwinner was on the street, but hey!!  The Glorious Future calls!!!)

We were also told that the Cost Of Labor was excessive; that nobody could possibly survive $30.00-$40.00/hour (plus bennies) labor-cost in industry. 

(We were told that by people who were paying up to $100 grand plus bennies to public school teachers, by the way.  That was for their 9-month/year scheduled work.)

Well, on further review of the actual statistics:

...the Trump administration released a new study on Friday that shows U.S. value-added content is declining for manufactured goods imported from Mexico and Canada. 

The Commerce Department analysis of recently released OECD trade in value-added data found that U.S. content in automotive imports from Mexico declined to 18.1 percent in 2011 from 26.5 percent in 1995. U.S. content in automotive imports from Canada declined to 26.4 percent from 34.9 percent over the same period

At the same time, automotive value added content from non-NAFTA countries in Mexican auto imports rose to 29.5 percent from 13.2 percent. China has seen the fastest growth in that component, to 5.8 percent in 2011 from a scant 0.3 percent in 1995....

Obviously, someone OTHER than the lying US Chamber performed the study. 

But I'll cut some slack to the US Chamber of Commerce (read:  GE, GM, IBM and 10 others).  The REAL culprit for the exporting of jobs is the Government.  The cost of OSHA, EPA, and ERISA (not to mention such things as multiple-levels of taxes and compliance costs therefor) are VERY significant--probably far more than mere 'labor' costs.

But don't hold your breath.  Trump or no, the Gummint will not de-regulate, particulary if that means less Gummint employees sucking your lifeblood.  Not gonna happen.

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