Wharton School of Business on NAFTA

Despite Trump’s Wharton credentials, he seems to not share their view on free trade. The Wharton School of Business has a good article on the impacts NAFTA had on the United States. The article can be read here. Here are some of the highlights:

[T]wenty-five cents out of every dollar of goods that are imported from Canada to the U.S. is actually ‘Made in USA’ content, as are 40 cents out of every dollar for goods imported into the U.S. from Mexico… Mexico imports more from the U.S. these days than do all of the so-called BRIC nations combined – Brazil, Russia, India and China… [T]he United States has been $127 billion richer each year thanks to ‘extra’ trade growth fostered by NAFTA… And while the costs of NAFTA are highly concentrated in specific industries…the benefits of the trade pact (such as lower prices for imported electronics or clothing) are distributed widely across the U.S.

For example, according to a 2014 report by the Peterson Institute for International Economics (PIIE), the United States has been $127 billion richer each year thanks to “extra” trade growth fostered by NAFTA. ….the pure economic payoff was …$400 [per person].

…[S]ome 14 million jobs rely on trade with Canada and Mexico combined, and the nearly 200,000 export-related jobs created annually by NAFTA pay an average salary of 15% to 20% more than the jobs that were lost… [O]nly about 15,000 jobs on net are lost each year due to NAFTA… ‘[S]ince NAFTA’s enactment, fewer than 5% of U.S. workers who have lost jobs from sizable layoffs (such as when large plants close down) can be attributed to rising imports from Mexico… For every net job lost in this definition, the gains to the U.S. economy were about $450,000, owing to enhanced productivity of the workforce, a broader range of goods and services, and lower prices at the checkout counter for households

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