Rating: 
Summary: Comparing the Scorecard on NAFTA to the Promises
Review: We are used to reading the promises about new legislation in bright headlines. What we are less used to is getting the story of how it all turned out. The Selling of "Free Trade" is at its best when it focuses on describing the impact on manufacturing jobs since NAFTA was enacted. The detailing of how the law was passed is also included, and is a typical story of special interests effectively using their resources.The question of how to evaluate NAFTA economically is a complicated one, and the book's main weakness is that the author has done too simple a job of analysis. However, he should be commended for starting to compile the data. Essentially, NAFTA has generated lots of jobs in Mexico along the border that pay a little better and provide a little better working conditions than exist in the rural interior of Mexico. There has been no boom in high-paying manufacturing jobs in the United States, and many manufacturing jobs have been lost. The book does a good job of detailing these factors. Ross Perot's promise of a "giant sucking sound" from jobs leaving the United States was closer to the reality we have experienced so far that what anyone else told us. On the other hand and unmentioned in the book, NAFTA has created an enormous strategic advantage for the U.S. economy by making low-cost, custom manufacturing possible in the United States. Companies like Dell Computer would not be able to use the manufacturing methods they do except for the presence of low-cost component factories along the Mexican border. It is this system of one-of production at low costs that has put such a severe crimp into Japanese and Chinese manufacturing exports in advanced industries. As a result, a lot of manufacturing jobs for the U.S. were probably created or saved that would otherwise have been lost. The wealth effect of the increased values of American companies from the increased profits is mentioned, but also is not analyzed. The wealth effect also creates and sustains jobs, usually outside of manufacturing. I suspect that if the analysis were undertaken it would show that NAFTA has been good for developing jobs in the United States in total, even though the head-to-head comparisons on manufacturing jobs belie that conclusion. However, no one can know until the analysis is done. On the political side, I don't know how I feel about the log-rolling to pass NAFTA until I know whether the legislation was good for the country or not. I know it wasn't too helpful for those who lost their jobs and could not find new ones. But in a time of decreasing unemployment that effect should have been lessened. What happened to those who lost their jobs is also unchronicled by this book, except for a few anecdotes. That would make a great story in and of itself. On the other hand, the additions to the country seem to be enormous in terms of market share gains, profit increases, and a higher value for securities. Also, consumers have probably enjoyed lower prices. If you like the human interest angle behind a major change like this, you will like Mr. MacArthur's approach. He did a good job of grasping the detail with his story of the Swingline move to Mexico and the political processes involved. One thing I learned from this book was that true bipartisan support means that there is an enormous amount at stake for some special interest. To do that there has to be enough campaign money delivered to buy support from both major parties. I used to think that such issues were above partisanship. Foolish me! After you have read and learned from this interesting book, take another issue where the politicians agree and ask yourself what the long-term consequences are for your country. We should all consider those questions first and more carefully than the ones where they disagree. Don't let complacency turn your country into a victim!
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