Wages and Prices
Would you like compare wages for comparable jobs in the U.S. and Mexico? Suppose you wanted to compare factory worker salaries in the two countries. Would you like to then compare how long each factory worker has to work to buy, say, a snicker bar? The list of jobs is quite extensive…as is the list of things to buy. If you want to put some real flesh and bones on NAFTA, Shop ’til You Drop is the site for you.
Of course, I need not tell you that Mexico enjoys a handsome trade surplus with the U.S. But, alas, Mexico is now being hard pressed by China. After China, there is India; after India, there is Vietnam; after Vietnam, there is Colombia. Have no fear, for every one job we lose, two jobs are created here.
After all, we should consider that
the amount of ‘insourcing’, that is, the value of business services exported by a country like the US. Clearly, this is considerable – think of all the high-priced business consultants and lawyers in rich countries offering their services to the rest of the world.
…as the Fed readies itself for another rescue.