Rust Belt

Thomas Sowell on NAFTA. Here’s an excerpt:

While American auto makers are laying off workers by the thousands, Japanese auto makers like Toyota and Honda are hiring thousands of American workers. But they are not hiring them in the rust belts.

They are avoiding the rust belts, just as domestic businesses are avoiding the high costs that have been piled on over the years by both unions and governments in the rust belt regions.

In short, the rust belts have been killing the goose that lays the golden eggs. That is a viable political strategy, so long as the goose doesn’t die before the next election and politicians can avoid leaving their fingerprints on the weapon.

…

Jobs are always disappearing. The big question is why they are not being replaced by new jobs. Rust belt policies that drove out old jobs also keep out new jobs.

NAFTA makes it easier for politicians to blame the problem on foreigners. In fact, foreigners make ideal scapegoats for politicians. After all, people in Japan or India can’t vote in American elections.

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