For decades millions of Americans have felt the blow of the manufacturing base moving either across our borders or overseas. Not only have manufacturing jobs gone away, but the residual jobs that supported the manufacturing industry have suffered as well. That’s a whole lot of displaced American workers.
A majority of Americans have always known that cheap foreign labor is what caused their plight, and no one in Washington wanted to address it, mainly because they are the culprits behind it with free trade deals, starting with Bill Clinton’s North American Free Trade Agreement (NAFTA), which ultimately saw manufacturing jobs go south of the border into Mexico, so that corporations could get cheaper labor and less costly regulations than what they had to deal with in the United States. If that wasn’t the reason, then why did the overwhelming majority of free trade jobs go to Mexico and not into Canada, where costs would be closer to what companies experienced in the U.S.?
So the politicians pretty much created the problems for corporations competing with the growing global manufacturing effort by decades of higher taxes, rising regulations, along with union collective bargaining, which always tends to end up with higher costs for manufacturing. The very same politicians who created the problems came up with a solution that helped American manufacturing companies while leaving the American manufacturing workers behind. Hence, the creation of The Forgotten Man.
So, Americans know it, and they have resented it for a long time, because the policies put in place that caused the loss of their jobs was seen as a boondoggle for the politicians via the fruits of the corporate lobbying re-election cash-for-solutions game played at the expense of the American worker.
The latest Morning Consult Poll shows that Americans place the blame for the U.S. manufacturing industry’s collapse almost two decades ago. About 71 percent of voters say cheap overseas labor displacing U.S. jobs has played a “significant role” or “somewhat of a role” in the steep decline in manufacturing employment years ago.
After NAFTA was carried out, American manufacturing employment dropped with 5 million manufacturing jobs being lost between 2000 and 2014.
Starting in 2000 — as the U.S. racked up billions in trade deficits and free trade negotiations allowed multinational corporations to readily outsource American jobs to underdeveloped nations — the U.S. manufacturing base steadily declined every year until 2014.
Most recently, as Breitbart News reported, President Trump’s “America First” economy in which the populist president has sought to level trade deals and reduce trade deficits, manufacturing employment has hit a ten year high.
About 63 percent of Republican voters say cheap labor overseas displacing U.S. jobs played a major role in that slow collapse of U.S. manufacturing that Trump has sought to build back up. Even more conservatives, 66 percent, say the same.
The poll reveals how politicians in the Republican Party pushing endless multinational free trade remain out-of-touch with their constituency, which increasingly views tariffs on imported goods as a necessity to protect U.S. industry and American jobs.
When asked about about free trade expansions across national borders, conservatives and Republican voters were the most opposed to it. Over a quarter of conservatives said they were against free trade, while nearly a quarter of Republican men were opposed to free trade. A majority of conservative and Republican men said the U.S. has benefited less than other countries from multinational free trade deals. The plurality of Americans, 32 percent, said the same thing. These are the folks who lost their jobs over deals they felt were geared to help mainly Mexico and corporations and purposely at their expense.
It’s true. Both immigration and free trade came at the expense of American workers, and for decades politicians expected the American voter to accept their plight. Thanks to free trade, foreign markets have been opened to multinational corporations, and that, in turn, has allowed companies to offshore American jobs, and then export their products back into the United States. That is insane!
Former President Obama complained about what he coined “shipping jobs overseas,” but he never openly accepted that his policies exacerbated the problem. Obama tried to shift the blame to corporate greed, fully ignoring that government under his administration made it almost impossible for many corporations to stay afloat in the United States.
The Rust Belt has been one of the hardest regions hit because of U.S. free trade with Mexico. In total, about 700,000 U.S. workers have been displaced, including:
- 14,500 American workers displaced in Wisconsin
- 43,600 American workers displaced in Michigan
- 2,600 American workers displaced in West Virginia
- 26,300 American workers displaced in Pennsylvania
- 34,900 American workers displaced in Ohio
- 34,300 American workers displaced in New York
- 6,500 American workers displaced in Iowa
- 24,400 American workers displaced in Indiana
- 34,700 American workers displaced in Illinois
However, right now we are seeing manufacturing companies move back to the U.S., thanks to the tax cuts and tax reform policies put in place by President Donald Trump and the GOP Congress. Not a single Democrat voted for either. That, combined with Trump’s efforts to reduce regulations, and his fight against illegal immigration, is making it very evident that America is being made great again.
As we previously reported Trump’s efforts are being seen as another win for the president and the American worker as American investors and CEOs of large corporations are bringing American cash back from overseas at what economists are saying is the biggest pullback on record.
Despite President Trump’s tit-for-tat trade barbs, America’s CEOs are not wasting any time in taking advantage of his tax reform plan.
More than $300 billion in foreign investments has already been “repatriated” in just the first quarter of 2018, according to the Bureau of Economic Analysis (BEA). This is largely due to CEOs taking advantage of the Republican tax cuts and tax reform measures that passed last December with President Trump’s support, according to According to Fox Business.
“U.S. firms that used to build their factories overseas in order to avoid U.S. taxes, they stopped in their tracks because of the tax bill, they are bringing all the money home”, said Kevin Hassett, chair of the president’s Council of Economic Advisers, during an interview on FOX Business’ Varney & Co. in June.
It’s truly amazing to see how Trump made it look so easy to turn our economy around, while at the same time his efforts have exposed the failures of liberal government policies. The coming midterm elections are the most important of our lifetimes as the Democratic Party leadership has all but guaranteed if they take back Congress in November they will impeach Trump and raise taxes and the remove tax reform, which will ultimately result in the malaise of what was felt prior to Trump taking office.