From article Federal Trade Report: Globalization Cripples American Towns as Free Trade Moves Jobs Overseas, Crushes Wages. John Binder. November 20, 2022.
Globalization of the United States economy has had a crippling impact on American towns as FREE TRADE MAKES IT EASIER FOR COMPANIES TO MOVE PRODUCTION AND JOBS OVERSEAS, a report from the U.S. International Trade Commission details.
The report, which assembled union representatives, economists, and others to discuss the impact of decades-long U.S. free trade policy, was requested by U.S. Trade Representative Katherine Tai and conducted in March and April of this year.
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Among other findings, the report found U.S. free trade policy has allowed companies to more readily move American jobs overseas and keep wages low for jobs that remain in the U.S.
“Participants identified trade policy as the cause of job losses.
One union representative noted trade policies often have loopholes or are manipulated by China and other countries so the policies are not operating as intended,” the report states:
Another union representative stated CURRENT TRADE AGREEMENTS ALLOW FOR MORE CAPITAL MOBILITY THAN THE AGREEMENTS PRIOR TO THE 1980s, enabling auto, electronics, and steel manufacturers to move overseas for any number of reasons.
Various union representatives explained companies are able to use the threat of moving jobs overseas for various reasons to limit the power of labor unions and keep domestic wages down.
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When U.S. free trade policy enables companies to offshore production, the report states, American employees are not the only ones directly impacted by such moves.
TOWNS AND COMMUNITIES AS A WHOLE, ALONG WITH AMERICANS IN SUPPORTING INDUSTRIES, FEEL THE DEVASTATING IMPACT OF OFFSHORED JOBS as well.
“Participants noted that, when jobs are lost, local businesses — such as gas stations and restaurants — that rely on affected workers as customers and clients, as well as other businesses in the industry’s supply chain, suffer as a result,” the report states.
“A retired steelworker also noted that company bankruptcies can have effects beyond job loss, such as lost pensions.”
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Societal impacts as a result of companies offshoring U.S. production, the report finds, include RISING MENTAL HEALTH ISSUES, SUICIDE, LOWER LIFE EXPECTANCY, DIVORCE, DOMESTIC VIOLENCE, HIGHER CRIME RATES, AND WORSE OFF PUBLIC SCHOOLS.
In particular, when a plant closed in Beaver County, Pennsylvania, the report states, because of U.S. free trade policy, neighboring mom-and-pop shops, local businesses, and grocery stores suffered tremendously to stay afloat. Many ended up closing as well.
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In Rep. Tim Ryan’s northeast Ohio district, nearly 25,000 manufacturing jobs have been lost over the last two decades.
At the same time, drug overdose deaths in the area have skyrocketed by 400 percent in some communities.
“A retired union representative said that families and neighborhoods in the Mahoning Valley and Youngstown, Ohio, are STILL BEING AFFECTED BY MANUFACTURING JOB LOSSES THAT OCCURRED OVER 40 YEARS AGO, as well as more recent plant closures,” the report states.
“She described a cycle of decline, decay, and blight, as the population has dropped to one-third of its previous size and homes lay vacant as children and grandchildren move away.”
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The economic and social decay of Ryan’s district is partially why Ohio’s Republican Senator-elect J.D. Vance explained to Breitbart News last month INCREASING TARIFFS ON FOREIGN IMPORTS MUST BE THE CENTER OF THE NATION’S INDUSTRIAL POLICY to “rebuild the industrial heartland of America.”
Offshoring, spurred by U.S. free trade policy, is not letting up.
(end of article)
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“Free trade makes it easier for companies to move production and jobs overseas.”
Free trade also makes it easier for companies to move production from California to Texas.
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“Various union representatives explained companies are able to use the threat of moving jobs overseas for various reasons to limit the power of labor unions and keep domestic wages down.”
Union bosses (and politicians), to show they care and keep their jobs, cannot call for restrictions on new manufacturing technologies so they must go after a smaller, better target: imports from outsider foreigners.
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Republican Senator-elect J.D. Vance explained to Breitbart News last month increasing tariffs on foreign imports must be the center of the nation’s industrial policy to ‘rebuild the industrial heartland of America.’”
Either Vance doesn’t understand economics or, more likely, he does but calculates trade protectionism is a better vote-getter.
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“Towns and communities as a whole, along with Americans in supporting industries, feel the devastating impact of offshored jobs as well.”
There are many small and ghost towns along the Mississippi River that flourished before trains came into use in the mid-1800s.
Studies show 80% of manufacturing jobs lost are a result of improving production technologies, only 20% of job losses result from production being moved overseas.
Both have the overall positive result of lowering consumer prices.
We don’t put restrictions on improving technologies and we must not put restrictions on companies moving production overseas.
We All must always demand and plan change and never fear tHAT.
(Byrds song Change Is Now)
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