NAFTA Revisited (Part II)
August 23, 2007
Just in case I haven’t yet made my point on the NAFTA issue, here are a few more myths and realities for your reading pleasure:
Myth #4:
NAFTA has created employment opportunities, increased wages and improved
welfare for Mexicans.
Reality: Between 1994 and 2003, 60 percent of the labor demand was left unmet in the formal sector, forcing Mexicans to get by any way they can in the informal sector. What’s more, wages have steadily lost their purchasing power since 1994. Mexican workers now earn 75% less than their American and Canadian counterparts.
Myth #5
NAFTA has contributed to reduce poverty and improve the environment.
Reality: Here are a few statistics to help you see the severity of the economic reality in Mexico and how NAFTA has not addressed any of them.
- The number of households living in poverty has grown 80% since 1984, no thanks to NAFTA.
- Today, 70% of Mexico’s population lives below the poverty line.
- The World Bank estimates 25 million Mexicans live in extreme poverty. Other more rigorous estimates put this figure at 40 million.
- 60% of indigenous children suffer from severe malnutrition.
- The price index of basic products, the canasta básica, increased by 257% between 1994-2002.
- The cost of environmental degradation is calculated at 10% of GDP per year.
- Between 1990 and 1999 the land area covered by forest fell from 32% to 28%.
If you still think that the United States has gotten the short end of the NAFTA stick, check out more myths and realities here. For those of you who think a bigger wall and more guns will put a stop to “illegal” immigration, maybe the reality of Mexico will help you see where the root of the problem lies. It is not just on the border.

Photo Credit: BBC






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