Posted by: coastcontact | May 2, 2016

Foolishly Passed Laws and the Unintended Consequences

A Tale of Two Nafta Towns

This is a story about NAFTA. The theory must have been that lower tariffs between Mexico, Canada, and the United States would benefit businesses in all three countries. Who would have thought that American companies would move to Mexico? But that is precisely what happened.

The latest that received attention from Donald Trump are Oreo Cookies and Carrier Air Conditioning. There have been many others that come to mind for me personally.

Bloomberg Businessweek reported on the case of A. O. Smith, an electric motor manufacturer in the small southern Kentucky town of Scottsville (population 4,226). The factory employed 1,100 people. Randall Williams and his wife Brenda each earned $16.10 per hour. The factory closed and moved to Acuña, Mexico. The workers in Mexico earn $1.75 per hour. The Williams have new jobs that pay minimum wage. She works in the high school cafeteria and he fills orders in a local farm store.

Brenda and Randall Williams plan to vote for Donald Trump in November.

A Tale of the Consequence of Minimum Wage Laws

Florida’s governor is fishing for California jobs now that the minimum wage will be $10.50 per hour in January 2017 and $15.00 per hour in 2022.

Laws are passed by government without adequate consideration of possible unintended consequences.


Responses

  1. What few know is that corporations receive massive tax breaks for outsourcing. All trade agreements should never have allowed corporations in the agreements. What should happen is that min wage for all countries should have been at the highest rate for all countries. That way the greedy corporations would not benefit by moving out of country or outsourcing.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: