According to sources, global economists can’t decide whether or not the NAFTA (North American Free Trade Agreement) hurt or helped countries who entered. A new study suggests that U.S. wages have INCREASED as a result.
Despite the confusion, the agreement seems to have done some good, according to the study. Between 1993 and 2005, NAFTA raised inflation-adjusted wages by 0.17 percent in the United States, by 0.96 percent in Canada, and by 1.30 percent in Mexico.
The deal pushed and signed by President Bill Clinton didn’t come without controversy. The House and Senate passed NAFTA by close margins. Some labor leaders vocally opposed NAFTA because they worried the treaty would cost the U.S. jobs.
ONE WORD: AMERO
Will free trade usher in a new age of continental trade that looks and feels like the Euro? Keep that eye open….
Free trade is used appropriately has the potential to help the economy. It would be well served to look at the current economic infrastructure to determine what NOT to do to ensure some semblance of success.