Mexico

Mexico is losing lots of jobs to China, for instance shirts, which sell to our shirt making and insignia company can be bought now for $1.00 US which hurts Mexico able to produce at $1.00 and sell at $2.00. In China their cost is $.20. So those jobs in textiles are moving to China where before they were in GA and the South. Before furniture was being made in the US now is being made in Mexico and China. All the jobs we lost in the US with NAFTA went to Mexico, such as Cars, Furniture, trailer welding, Chemical making, etc. This is a big issue for China for jobs to help with middle class building and to Mexico with jobs. We have discussed the problems with population growth in both countries, weather and droughts, etc. Shoes are another big issue for the interior of Mexico where previously many shoes were made. .

Now the price difference is too vast to contemplate a reasonable competitive market between the two countries. Target of course is us, that is where the highest price point is, look at the price of Nike here. Even at Wal-Mart you can buy a leather pair of no brand sneakers that are pretty nice for $13.00. I know I am wearing a pair and I had to laugh at my great luck finding these nice shoes for such a bargain. Of course Mexico is not alone as jobs here shift there and China, UK and Africa, etc.


We are seeing many countries whose economies and all they have built in the last ten years through trade with more wealthy nations get hurt as even newer entrants come into the market on price. Meanwhile many of our trade partners are mad at us as we turn to protectionism, ie… steel import taxes, import taxes on lumber, and disallowing fruit and other commodities in from South America. We have some countries mad at us like France, who can never be satisfied and third world countries, who say if you do not buy our stuff give us free money?


There are hundreds of examples we have been through and articles in The Economist, World trade, HBR, Forbes, Fortune Business Week and Foreign Affairs that I could site, but for wanting of more time to move onto other important topics, just believe me. Meanwhile the border has opened up to Mexican trucks to bring in goods faster and cheaper. Also with the drought in Northern Central Mexico water has been a tough issue (many are conserving to survive) We understand? This coupled with job losses we are seeing more seeking a better life in the US. Many are calling for a complete reform of immigration policy. Few would disagree that something needs to be done there.

However on the other side we are finding increased productivity from these groups of illegal aliens. We are also finding extreme entrepreneurship from these people folks and their recent counterpart legal entrants and the SBA has made a web site in Spanish to stimulate growth in small business ant thus jobs for all Americans. I would like everyone to know the significant problems associated with third world countries failing economies on the furthering and betterment of the human race. It affects us too, like it or not we are neighbors and we must get along.