Nafta Vs Wto

757 Words4 Pages
In the mid- the 1990s, two Free Trade Agreement bring the fundamental changes to the United States foreign trade, these two Agreements are NAFTA and WTO. It changed the life of middle class and the way the big business operates. Big business began outsourcing jobs, trying to save money by paying foreign workers to lower wages than American workers. That directly led to the decline of the major industrial cities like Detroit and Flint in Michigan. Thousands of workers of Car Company lost their jobs, and the Labor Union lost its power. The way that big business operates has changed dramatically. Before the agreements, it is difficult for Nations to trade with each other, all the carmakers have their factories in the United States, and…show more content…
The population of Flint dropped from 200,000 in 2013 to 99,000 in 2014, while 41.5% of the population in Flint lives below the poverty line. Not only Flint has been influenced, in Detroit, which is the most famous industrial city in the world, now have 39.3% of its population lives below the poverty line (Lee). Under the trend of globalization, “workers have lost bargaining power” (Sorscher, 2014). Flint, the place where GM established, a famous industrial city, now became a place full of desperation, where no one would like to visit and live.
Outsource of job caused thousands of people lost their job, and let union lost its power. After carmakers closed their plants, thousands of American workers lost their jobs. Now, these jobs are in Mexico, 80% of the card produced in Mexico are exported to other countries, while 60% of these exported cars are sold to United States (Muller, 2014). Outsource of jobs directly affected the lives of middle-class workers, According to Wallach, “NAFTA contributed to downward pressure on U.S. wages and growing income inequality” (Wallach). While workers lost their jobs, Labor Union also lost its power. Nowadays, only 12% of workers are a union member, which has decreased tremendously from 20% in 1983 (Levs, 2012). The labor union is losing power because there are fewer workers in the US, more importantly, a labor union is working against the big business. Big business wants to
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