U.S. tried manufacturing with Mexico

http://www.heraldtribune.com/article/20 ... 20995/1029

The author of the letter on turning to our neighbor to the south for production of goods unfortunately is not informed about the debacle that resulted when we tried that.

The idea in its inception was a good one, but problems in Mexico prevented its success. The process was supposed to be amplified by the North American Free Trade Agreement. Our manufacturers would ship components into Mexico, where items would be completed then shipped back to the states. Workers were paid $2.11 per hour. That was higher than Chinese wages, but quicker deliveries and flexibility were supposed to negate the Chinese cost advantage.

Mexico dropped the ball. It failed to furnish the necessary infrastructure to deliver the goods. Today, Mexican labor's hourly wage has dropped to $1.50, and China is doing our manufacturing.

Added to Mexico's unemployment problem is the fact that half of its population is under age 30. This is why we have such an illegal alien problem.

Also, the illicit drug problem in Colombia has spread into Mexico because of its access to the big U.S. market. President Bush is considering subsidizing Mexico to the tune of a billion dollars to fight the war on the drug cartels. Maybe those funds would be better spent to create jobs in Mexico to alleviate its worker exodus.

The U.S. Congress hasn't helped. In 1965, it changed the immigration laws that favored skilled European workers to one that was more family oriented. Then the 1987 immigration law granted amnesty, and the floodgates opened.

Sanford Danziger
Bradenton