Sounds like a boon for Mexico, good for them. I guess it's kind of satisfying to see these policies have the opposite of the intended effect.
This policy is actually doing exactly what it is suppose to. It is preventing more auto manufacturers from moving operations to Mexico or Canada where labor and Exchange rates are more favorable.
GM, FORD, Toyota, Honda, Chrysler all had their eye on moving more production to Mexico, this new agreement probably stops that.
I don't think anyone thought an auto manufacturer in Mexico would pull up shop and move to the US, that wouldn't make sense.
16$ an hour is less than what they pay in Canada.
Source: I work for a supplier in the Automotive Capital of Canada. These comments are so egregiously false.
It's the equivalent of 16. USD. So around 22. CAD?
I agree, nothing is moving to Canada (comment was more aimed at Mexico)I guess since you work for a supplier you heard of FORD probably closing down their Oakville Assembly plant since they are not assigning any vehicle production to that plant after they stop making the Edge and the Lincoln equivalent.
In GDP per capita Mexico ranks in front of 120 other nations, including: China, Turkey, Brazil, Argentina, Thailand, and just behind Russia. US imports are 1/3 of their economy; we're running a $100 billion trade deficit with Mexico, which is to their benefit. As an American I'm happy that we're doing that, it's to our benefit that Mexico's economy advances. It has the 15th largest economy in the world and continues to gradually climb. That's despite the intense domestic chaos they've been dealing with there the past ~13 years. As a developing nation their long-term economic potential is immense.
Globalism is a sham and it’s surprising to still see someone parrot its hollow logic that only makes sense if you look at it in the short term and on a small scale instead of as a long term society-wide trend.
We've underfunded career counseling in public schools for generations. We don't have any healthy career retraining system like other OECD countries do. Unemployment systems in the USA are nearly useless when it comes to retraining employees -- they really just act as job boards. Most states don't seem capable of attracting different industries, so when a batch of jobs leave a region, those employees struggle to find a near replacement. We have massive mental health and addiction problems so companies spend a lot of effort to avoid hiring anyone who might raise these costs for the company.
US society doesn't actually care about employees who don't take care of themselves. It's time we stop pretending like we do and call a spade a spade.
Tax the capitalists to reduce inequality and also fully fund better programs like healthcare, education? This funding is wages for workers and as a society we remain developed?
The only problem with all our systems is disproportionate gains at the top.
And a dollar goes much further in Mexico than it does in the US, so even if the net labour spending by companies goes down, more people will be able to have jobs. I think it's reasonable to believe that 2 people with jobs is better than one person than with a job, even if the 2 are in Mexico, and the one is in the US.
with all the talk of america first, who cares how this impacts US workers?
Perhaps, but Mexico has a ton of advantages that lots of other countries don't. They have cheap labor and can source parts quickly and cheaply from the USA.
Mexico has low-friction trade agreements with something like 40 other countries. In an age where America's government is demanding to renegotiate trade deals and do them all outside the WTO and rejecting all 3+ lateral deals, Mexico's trade policy stability is still an advantage over the current US policies, even if they lose some wage benefits.