Outsourcing of American Jobs to Mexico

Per NAFTA the outsourcing of American jobs to Mexico was supposed to open up job opportunities in both countries. Thus far it looks like only Mexico and the outsourcing companies are benefiting from this arrangement. In addition I believe that it is further aggravating the illegal immigration problem we are experiencing from this country. What do I mean? The traditional turnover or attrition rate in the border region in the Tijuana area has run anywhere from 7 to 14 percent in a good or bad economy. Today it continues to run the same rate. Why? Because of the wages that are being paid to the employees working for the companies who have moved operations to Mexico. For example, at one company I know of the minimum wage being offered to entry level employees is 50 pesos a day, less then 5 dollars at today's exchange rates. Line leads, the people who are running the shop floor, are making 100 to 120 pesos a day, pathetic. These individuals work for these wages only long enough to save sufficient monies to pay a coyote, people smuggler, to cross them into the United States. If NAFTA is to work something has to be done about these wages. Furthermore, something has to be done about the abuses that are being suffered by the people working for these companies, not to mention the abuse suffered at the hands of their own government.

After reading the disc mojo

After reading the disc mojo review i think this information should be put on cd and sent out to people.

Outsourcing Mindless Jobs

The last thing we need is more government intervention. History has shown us time and time again that the interplay of supply and demand ultimately rule the market. People need to stop blaming governments and corporations for lax laws and began taking action by becoming educated consumers and a more skillful workforce. The Industrial Age has come and gone. People need to aim higher than a mindless and routine blue-collar job. American needs to do what historically it has done best--creating and innovating new services and new technologies. We need to adapt to the times and embrace the new Information Age.

When your in business, the only thing you worry about is how to survive and the only way you do that is by staying ahead of the pack. The only way you stay ahead is by producing the products cheaper, better, and faster than anyone else. Companies are now competing with companies from around the world. The Information Age has expanded the playing field and has created more jobs because technologies and expertise are being shared across borders with greater ease. The field is more competative and this is for the consumer. The CEOs of companies are not the only ones that benefit from outsourcing jobs. Americans in the end benefit in many different ways. 1) If you're a shareholder, more profits means more dividends in your investment account. 2) Lower costs usually translates into lower prices, which translates into more disposable income. 3) Since some companies reinvest the profits into their products, the consumer ends up with a higher quality product. In the end the consumer ends up with more money for their retirement, in their pocket, and with higher quality products.

Before we start comparing U.S. wages to Mexico wages, lets consider three very important factors--inflation, taxes, and overall cost of living. Having lived in Venezuela, I can attest that many commodities, transportation, and food are considerably cheaper than here in the states.

Before we blame goverments and corporations for their lax environmental policies. Once again, I say that the market rules and who is the market? You and me. Governments supossedly are there to protect the interests of its citizens and corporations survive on the sale of their products. So, before we blame others, we need to look deep within ourselves because consumers are the root of the problem. Many Americans live a life of excess. The American Dream that we hold so dearly is really crippling the environment. Instead of driving fuel-efficient vehicles, the majority of Americans are driving gas-guzzling SUVs clogging up the highways, emitting more gases into the atmosphere, creating more smog, and eventually creating a suffocating environment where its habitants have become prone to allergies and numerous other diseases. Our materialistic and individualistic thinking, which promotes growth at all costs, is sapping away the resources needed to survive. Our government is responding to that demand by trying to secure the 2nd biggest oil reserve in the world. It all comes down to supply and demand. As long as the demand exists, corporations will do whatever it takes meet it and governments will step in to protect it. Outsourcing of jobs to Mexico is just one of those tactics used by business to meet the demand. We need to stop pointing fingers and examine our own lifestyle. Ask yourself, are you part of the problem? Are you promoting the demand?

NAFTA is not entirely to blame

As an international supply chain professional with over 20 years experience and a Customs broker's license, I can assure that NAFTA is not the only trade agreement that has bled the US job market of good paying manufacturing jobs.

The new US-Chilean agreement as well as the Caribbean Basin Partnership for Trade Agreement (which was called Caricom back in the
70's) all began with the same concept as NAFTA- to expand free trade
and allow for goods wholly or partially produced in these countries entry into the US market at reduced rates. The tariff rates would be eliminated over time.

The Mercosur agreement between Brazil, Chile, & Argentina in the mid to late 1990's also attracted much US manufacturing into these low-wage countries. While the Mercosur did not have an impact on US importation of goods from these countries, it did take advantage of tax and duty benefits in that region. When those economies imploded, as did Argentina's, the US firms were the first ones out.

Trade agreements are really not the issue. It's the tax systems for US businesses and the abuse of these laws by overpaid CEO's looking to get bigger bonuses that are at issue. Read up on Electrolux's plants in Michigan. Despite making good profits and producing a quality product, the management still shut down plants and moved to Mexico. Why- because they can turn bigger profits in Mexico.

Now will the people in Mexico be able to buy those same Electrolux products in Mexico at the low wages they make? No. Do you think the US customers will buy Electrolux products made in Mexico- yes, if the price is cheaper. Will quality be an issue- hard to tell. In the meantime, Electrolux Corporation is the only one trading profitably
because they are not only paying less wage compensation and probably no insurance benefits as they would have to in the US, they are also getting corporate tax breaks for operating on a multinational level.
This is what is wrong with FREE TRADE- it's a free ride to big players.

NAFTA does not control

NAFTA does not control what individual companies pay or not pay their employees. It allows free trade between the US and Mexico. A yearly attrition rate of 7-14% is pretty good. Most companies would not complain about keeping 93-86% of their current employees-- particularly in production roles. Why can't these folks making 5 pesos/day not get a better job? (also,those above them, will always make more, that goes for anywhere one works.)

Undereducated people anywhere will suffer what might seem like unfair consequences. However, it is no different if they are making minimum wage in Akron, Ohio; they are still going to want to blame the government or the company they work for. Why should someone with no education, who decided to have 3-4 children and cannot afford to feed them, decide that they are owed anything?

Furthermore, coming to the US, is not going to make their lives better. There are plenty of people in Mexico, India, Africa, and any other "poor country" that are doing just fine. Being at a disadvantage due to lack of effort or just plain bad luck does not justify a governemnt "handout." What about those that work hard and make a decent living?

If socialism is the best alternative, look at our neighbors in Cuba and the ex-Soviet block. Socialist programs do not work. It makes people lazy and entitled. Not to mention it gives the governemnt too much power to do as it will. If you want to really cripple these mean companies, stop buying the products they make. The reason these companies go to cheap labor is to meet the demand for affordable products. Noone wants to pay $1,000.00 for cell phones or $400.00 for a pair of jeans.

Please, do not fall victim to the belief that paying higher wages alone will solve poor people's problems. How about insted of asking the government to force these companies to pay more, we ask the government to mandate proper family planning for those living below the poverty level? And how about making it illegal to drop out of high school? One will not cure cancer with really, really potent aspirin...we have to change our mentalilty so the next generation can properly re-endoctrinate itself and learn from the mistakes already in place, which seem to be duplicated generation after generation within the underpriveledged class...

US Government Must Step In

It seems to me that as long as US companies are allowed to move any of their operations to Mexico, the wage difference will continue. Being that this is an election year will only cause this issue to be left alone by both candidates and any attempt to re-hash the whole issue will certaintly be "after" the elections. In order to receive the hispanic vote issues such as this one walk a virtual tightrope in the minds of candidates and usually hard to be accepted by the hispanic voters if the companies are affected and may possibly lose out on "any" kind of cheap pay.

Outsourcing Jobs

As long as there is an international wage diferential for equivalent work, there will be an adjustment process. In the long term, wages will tend to equalize. The interest of humanity is that the wages equalize nearer the US level, not the Mexican level. Any legislation to stop or maintain the differential (stop migration of labor towards cheap capital or stop migration of capital towards cheap labor) will ultimately fail. We need long term stratagies to build up the Mexican wage in this century.

I agree

I was born in Tijuana, Mexico and 10 years a go Tijuana was a beautiful city, unfortunately people from others cities specially from the south came to Tijuana and they "screw up".Why? because there are not receiving good paid.
What we need Hispanic people? help each other. Still we are carriying a culture to "turn down". I am working with Latin people and they don't help at all. That's why I am looking for another job so I can work with Americans or other culture. We have to learn from iranians, phillipines, black people and other cultures.

Otsourcing jobs to Mexico

You are right about the explotation of the Mexican people in their own country, but as you mention this is also done in the US.
In regards to the NAFTA benefits, I believe that Mexico's benefits are very questionable. Who had been recipients of the benefits are the corrupted goberments from both sides of the border and the big corporations, most of them American or from other foreign countries in wich America has a partnership. The American population is irritated because some of them had believed the US goberment message that American economy is in bad shape because many jobs had move abroad, but the reality is that this current goberment had done nothing to improve the economy and create new jobs. Just think the enormous quantity of new jobs that could been created in the Amercian economy with all the expending in a stupid war.
Americans had been benefited from NAFTA as well as from the ilegal inmigrants every time they get afordable products and services paying pennies for the labor.

I was exploited !! Now I work in Marbeela Hotels

I was exploited !! Now I work in a Hotel in Marbella and my life is wonderful in Spain where they treat me with respect !!

I want to live in spain

Dear anonymous:

Congratulations!!!!!!, let me tell you that I Borned in Mexico my family is Cuban and my grandparents from Spain I have been in Spain many times for vacations, and now that I live in the US, by the way without a job one week ago I need to find a way out. After your comments I thougth why not to try somewhere else after all I have been a citizen of the world for the past 7 years.

Can you tell me how you did me move? and what is your advise?, Once again congratulations for that change.

Thank You.

Another anonymous.