Home Topics in Depth Economics What Happened When Factory Jobs Moved From Warren, Ohio, To Juarez, Mexico?

  • Eggar (2063 posts)
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    What Happened When Factory Jobs Moved From Warren, Ohio, To Juarez, Mexico?

    A Tale of Two Cities

     

    By Kate Linthicum | Reporting from Warren, Ohio, and Juarez, Mexico

    Feb 17, 2017


    Chris Wade reached into the darkness to silence his blaring alarm clock. It was 4:30 on a frigid winter morning in Warren, Ohio, and outside a fresh layer of snow blanketed the yard.Thank God, Wade thought to himself. He would be able to get out his plow and make some quick cash.

    Money never used to be a problem for Wade, 47, who owned a house with a pool back when he worked at Delphi Automotive, a parts manufacturer that for years was one of the biggest employers in this wooded stretch of northeastern Ohio. But 10 years after taking a buyout as part of Delphi’s ongoing shift of production out of the United States and into Mexico and China, the house and the pool were gone.

    Berta Alicia Lopez, 54, is the new face of Delphi. On a recent chilly morning, she woke before sunrise on the outskirts of Juarez, Mexico, and caught an unheated bus that dropped her an hour away at the Delphi plant. Lopez earns $1 an hour assembling cables and electronics that will eventually be installed into vehicles — the same work that Wade once did for $30 an hour. A farmer’s daughter who grew up in an impoverished stretch of rural Mexico, Lopez is proud to own a used Toyota sedan and a concrete block house.

    She frequently thanks God for the work, even if it is in a town troubled by drug violence, even if she doesn’t see many possibilities for earning more or advancing. The two workers live 1,800 miles and a border apart and have never met. But their stories embody the massive economic shift that has accompanied the rise of free trade….

     

    [More:]

    http://www.latimes.com/world/mexico-americas/la-fg-mexico-us-factories-20170217-htmlstory.html

     

    djean111, Babel 17, Populist Prole and 5 others7wo7rees, PADemD, jdpriestly, DesertRat2015, Depaysement like this

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  • Depaysement (712 posts)
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    1. Class War

    Fantastic article.

    So where did the differential between Chris’ pay and Berta’s pay windup?  In the capitalists’ bank accounts.

     

    "White youth, black youth Better find another solution Why not phone up Robin Hood And ask him for some wealth distribution" White Man in Hammersmith Palais (1978)
    • FanBoy (7985 posts)
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      2. got some spin in it

      He has pledged to tax imports from Mexico and renegotiate the North American Free Trade Agreement, which eliminated most tariffs on the continent and, in Trump’s view, enriched Mexico at the expense of middle America.

      But the real legacy of NAFTA, which took effect in 1994, is more complicated.

      Nobody disputes that the loss of manufacturing has left a bruising mark in parts of the U.S., especially in places like the Rust Belt, where lower paying service industry jobs are increasingly replacing middle class factory positions.

      But many economists say changes in technology, along with competition with China, are more to blame than NAFTA. The period of steepest decline in manufacturing jobs, which fell from 17 million to 11 million between 2000 and 2010, is substantially attributable to the free import of goods manufactured more cheaply in China and increasing reliance on machines to do the jobs humans once did, according to Gordon Hanson, an economist and trade expert at UC San Diego.

      a lot to take issue with there like the ‘automation’ and ‘china’ memes

      = Kissinger’s opening to china

      = why automate when you have cheap labor

      = cherry picking “steepest decline”

      = who is feeding Gordon hanson

       

      what I found most interesting was

      80% of mexico’s exports go to the us

      half of Mexicans are still poor more than 20 years after nafta

      and the labor arbitrage involved in that equation

      it reminds me of some historical reference about gold and silver arbitrage in some country or another

      how gold and silver switched positions in their respective strongholds

      and how it made a mint for the arbitragers

       

       

       

       

      • Depaysement (712 posts)
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        3. Spot on

        That’s the only way traders make money.  It is also the essence of the Shock Doctrine.

        Hanson is basically a neo-lib, CFR type, with funding from the usual suspects.

        "White youth, black youth Better find another solution Why not phone up Robin Hood And ask him for some wealth distribution" White Man in Hammersmith Palais (1978)