Page 12 - SCBJ-201604
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South China Business Journal
HIGHLIGHT this trend citing data showing that the
country has lost some 75,000 jobs since
the agreement entered into force, due development of and shift towards other goes to say, according to economists on
in large part to the ballooning trade industries. Maine and North Carolina the other end of the thought spectrum,
deficit ($13 billion) with Korea. Senate have witnessed the slow disappearance of that the real culprit for the decline of
Finance Committee Chairman Orrin the textile industry that once fueled their U.S. manufacturing is not the expansion
Hatch (R-UT) recently took up this matter economies. Between 1993 and 2007, U.S. of free trade but rather technological
sending a letter to the Korean ambassador textile and apparel employment decreased advancements and other efficiencies
raising concerns regarding Korea’s from 1,662,000 to less than 750,000. developed and achieved in the sector.
implementation of and compliance
with KORUS. “Implementation of and Other economists and scholars disagree B. Politicalization of Free Trade
compliance with the agreement has with the proposition that free trade alone
fallen short in several areas, resulting is responsible for the demolition of the Overall, Americans are deeply conflicted
in limited benefits to U.S. firms seeking American manufacturing industry, and about globalization and free trade.
to benefit from the agreement and to with it, middle class jobs and wages. This is largely a reflection of trade’s
expand their economic partnerships,” While they acknowledge that overall uneven impact across the economy and
the letter stated. The Senate Finance employment in the manufacturing sector the country; a fact highlighted most
Committee also held a corresponding is shrinking, these economists maintain recently by Carrier’s announcement that
hearing assessing implementation issues that the real culprit is not free trade in and it was relocating some 1,400 jobs from
with past trade agreements and the need of itself but rather productivity growth Indianapolis, IN to Mexico. In a recent
for more executive branch oversight driven by technological advancements Gallup poll, a majority of Americans
in the implementation of future trade and automation. While U.S. employment surveyed (58 percent) saw foreign trade
agreements (i.e. TPP). in manufacturing has been on a steady as an economic opportunity with just
decline since 1979, long before the passage 33 percent seeing it as an economic
The Rust Belt has been particularly hit of free trade agreements like NAFTA and threat. Interestingly, the share of
hard with the loss of manufacturing jobs. KORUS, overall industrial production respondents who are optimistic about
In Wisconsin alone, the state has shed in the U.S. has steadily risen. Further, trade has increased since the financial
about 30,000 manufacturing jobs over the since the recession ended in 2009, crisis, according to the poll. The Gallup
past 30 years. In Michigan, annual median manufacturing output has risen by more poll contrasts with a Bloomberg poll,
household income continues to drop as than 20 percent because of a combination which suggests a deep skepticism of
high paying manufacturing jobs leave of “reshoring” and increased domestic international foreign exchange. For
the state for cheaper locales like Mexico. demand. However, overall manufacturing example, nearly two-thirds of respondents
Since 1994, the inflation-adjusted annual employment is up just 5 percent. This all said that there should be more restrictions
median household income fell by about
$14,000 a year – down to about $52,000.
Other parts of the country have been as
equally impacted by trade liberalization,
including Ohio and Pennsylvania, once
capitals of the steel industry. It is worth
noting, however, that despite the slow
deterioration of the U.S. steel industry,
Census Bureau data shows that in the
formerly steel-reliant Pittsburgh area,
per-capita incomes roughly doubled
from the beginning of steel’s downturn
in 1978 to 2014. In inflation- adjusted
constant dollars, average personal income
rose from $23,239 in 1978 to $45,231 in
2014. This is due in large part to the city’s
10
HIGHLIGHT this trend citing data showing that the
country has lost some 75,000 jobs since
the agreement entered into force, due development of and shift towards other goes to say, according to economists on
in large part to the ballooning trade industries. Maine and North Carolina the other end of the thought spectrum,
deficit ($13 billion) with Korea. Senate have witnessed the slow disappearance of that the real culprit for the decline of
Finance Committee Chairman Orrin the textile industry that once fueled their U.S. manufacturing is not the expansion
Hatch (R-UT) recently took up this matter economies. Between 1993 and 2007, U.S. of free trade but rather technological
sending a letter to the Korean ambassador textile and apparel employment decreased advancements and other efficiencies
raising concerns regarding Korea’s from 1,662,000 to less than 750,000. developed and achieved in the sector.
implementation of and compliance
with KORUS. “Implementation of and Other economists and scholars disagree B. Politicalization of Free Trade
compliance with the agreement has with the proposition that free trade alone
fallen short in several areas, resulting is responsible for the demolition of the Overall, Americans are deeply conflicted
in limited benefits to U.S. firms seeking American manufacturing industry, and about globalization and free trade.
to benefit from the agreement and to with it, middle class jobs and wages. This is largely a reflection of trade’s
expand their economic partnerships,” While they acknowledge that overall uneven impact across the economy and
the letter stated. The Senate Finance employment in the manufacturing sector the country; a fact highlighted most
Committee also held a corresponding is shrinking, these economists maintain recently by Carrier’s announcement that
hearing assessing implementation issues that the real culprit is not free trade in and it was relocating some 1,400 jobs from
with past trade agreements and the need of itself but rather productivity growth Indianapolis, IN to Mexico. In a recent
for more executive branch oversight driven by technological advancements Gallup poll, a majority of Americans
in the implementation of future trade and automation. While U.S. employment surveyed (58 percent) saw foreign trade
agreements (i.e. TPP). in manufacturing has been on a steady as an economic opportunity with just
decline since 1979, long before the passage 33 percent seeing it as an economic
The Rust Belt has been particularly hit of free trade agreements like NAFTA and threat. Interestingly, the share of
hard with the loss of manufacturing jobs. KORUS, overall industrial production respondents who are optimistic about
In Wisconsin alone, the state has shed in the U.S. has steadily risen. Further, trade has increased since the financial
about 30,000 manufacturing jobs over the since the recession ended in 2009, crisis, according to the poll. The Gallup
past 30 years. In Michigan, annual median manufacturing output has risen by more poll contrasts with a Bloomberg poll,
household income continues to drop as than 20 percent because of a combination which suggests a deep skepticism of
high paying manufacturing jobs leave of “reshoring” and increased domestic international foreign exchange. For
the state for cheaper locales like Mexico. demand. However, overall manufacturing example, nearly two-thirds of respondents
Since 1994, the inflation-adjusted annual employment is up just 5 percent. This all said that there should be more restrictions
median household income fell by about
$14,000 a year – down to about $52,000.
Other parts of the country have been as
equally impacted by trade liberalization,
including Ohio and Pennsylvania, once
capitals of the steel industry. It is worth
noting, however, that despite the slow
deterioration of the U.S. steel industry,
Census Bureau data shows that in the
formerly steel-reliant Pittsburgh area,
per-capita incomes roughly doubled
from the beginning of steel’s downturn
in 1978 to 2014. In inflation- adjusted
constant dollars, average personal income
rose from $23,239 in 1978 to $45,231 in
2014. This is due in large part to the city’s
10
