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Monday, 14 February 2011 17:18

Perot Vindicated as NAFTA Causes Mass Outsourcing of Jobs

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During his 1992 presidential campaign, Texan Ross Perot was maligned for his warning that the North American Free Trade Agreement (NAFTA) would cause many American jobs to be outsourced. But it turns out he was right about that “giant sucking sound.” NAFTA went into effect January 1, 1994, and the resultant suction of American jobs to points south — and ultimately west — has seemed almost audible. 

According to the analysis of Global Economic Intersection (GEI), the goods balance of trade for the U.S. with Mexico has been negative and growing since the adoption of NAFTA. GEI, an economics-based website, focuses on the effects of economics on finance, investing, social interactions, politics, and public policy, and also features analysis of economic indicators.

GEI reported that in 2010, the negative balance of trade for the U.S. was $61.6 billion, 9.5 percent of the total goods trade deficit last year. The group’s analysis also noted that almost 29 million American jobs had been lost between 1992 and the end of 2010.

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