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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsObama/GOP Korea trade deal resulted in growing trade deficits and more than 75,000 lost jobs
And when I say "the Obama/GOP" trade deal, I'm not exaggerating: Obama pushed to pass KORUS, which was an Eric Cantor-sponsored bill, and passed in the House because of GOP votes; more than 2/3 of Democrats rejected it.
Then, as now with TPP, Obama, the GOP, and corporate mouthpieces were crying that the "sky would fall" unless the trade deal got passed, and promising Jobs Would Result.
http://www.epi.org/blog/u-s-korea-trade-deal-resulted-in-growing-trade-deficits-and-more-than-75000-lost-u-s-jobs/
Posted March 30, 2015 at 2:31 pm by Robert E. Scott
U.S.-Korea Trade Deal Resulted in Growing Trade Deficits and More Than 75,000 Lost U.S. Jobs
March 15th was the third anniversary of the U.S.-Korea Free Trade Agreement (KORUS). President Obama said that the agreement would support 70,000 U.S. jobs. This claim was supported by a White House fact sheet that claimed that the KORUS agreement would increase exports of American goods by $10 to $11 billion and that they would support 70,000 American jobs from increased goods exports alone. Things are not turning out as predicted. Far from supporting jobs, growing goods trade deficits with Korea have eliminated more than 75,000 jobs between 2011 and 2014.
Expanding exports alone is not enough to ensure that trade adds jobs to the economy. Increases in U.S. exports tend to create jobs in the United States, but increases in imports lead to job lossby destroying existing jobs and preventing new job creationas imports displace goods that otherwise would have been made in the United States by domestic workers. Thus, it is changes in trade balancesthe net of exports and importsthat determine the number of jobs created or displaced by trade and investment deals like KORUS.
In the first three years after KORUS took effect, U.S. domestic exports to Korea increased by only $0.8 billion, an increase of 1.8%, as shown in the figure below. Imports from Korea increased $12.6 billion, an increase of 22.5%. As a result, the U.S.trade deficit with Korea increased $11.8 billion between 2011 and 2014, an increase of 80.4%, nearly doubling in just three years.
U.S. goods exports to the rest-of-the-world (ROW) increased 9.1 percent in the same period and ROW imports increased only 5.9 percent, so our trade balance with the rest of the world improved in this period. In other words, the U.S. trade deficit and job displacement with Korea increased despite an overall improvement in U.S. trade with the ROW. Its impossible to avoid the conclusion that the KORUS trade and investment deal increased U.S. trade deficits and job displacement.
FreakinDJ
(17,644 posts)KG
(28,751 posts)AzDar
(14,023 posts)djean111
(14,255 posts)Oh, and those pushing the TPP/TTIP know damned right well that trickle down does not work.
stillwaiting
(3,795 posts)Hoyt
(54,770 posts)The "experts" take the deficit and assume that means lost jobs to Korea. So our trade deficit with Korea went up because we bought more Korean cars or electrical equipment. Well, if we had not bought it from Korea, we likely would have bought it from another country.
Besides, there are plenty of economists who think trade deficits here aren't nearly as bad as the Nationalists want us to believe. http://www.infoplease.com/cig/economics/trade-deficits-bad-good.html
brentspeak
(18,290 posts)we should instead listen to an anonymous shill posting on the internet under a Woody Guthrie avatar. He's the real "expert".
neverforget
(9,436 posts)can keep American jobs while trading with other countries. Oh, and we also hate poor people in those countries and want them to starve.
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=6601001
Hoyt
(54,770 posts)Elwood P Dowd
(11,443 posts)and doesn't give a hoot how many American workers lose their jobs. Putting billions of extra dollars of profit into the pockets of Wall Street and corporate executives floats his boat. That, plus he always mentions helping out the poor foreigners while totally ignoring poor Americans.
Hoyt
(54,770 posts)Trading among ourselves hasn't helped the poor, here or elsewhere. Who do you think you are fooling?
Elwood P Dowd
(11,443 posts)you're spewing on here? You are the one trying to fool everyone, and only a tiny minority of DUers believe your propaganda.
Hoyt
(54,770 posts)You want a race to the bottom, let's trade among ourselves and forget about attracting jobs from foreign companies building plants and offices here, developing foreign markets, helping foreign countries increase their wealth, etc.
Elwood P Dowd
(11,443 posts)who call you out on your BS. We don't need another fake free trade deal to trade with foreigners, we've signed dozens of them over the past 30 years, and they have been a disaster to working class Americans. Anyway, most of TPP is not even about trade but instead corporate scams to gain more influence over laws and regulations. Are you so delusional that you really believe the repukes and corporate crooks who cook up all these deals are doing so to help American workers and increase wealth of foreign workers?
Hoyt
(54,770 posts)AgingAmerican
(12,958 posts)Because these deals move manufacturing from large American cities to other countries. The loss of manufacturing jobs seriously undermine minority opportunities for employment in large cities.
Fred Sanders
(23,946 posts)Americans demand cheap goods manufactured cheap, mainly because of low wage foreign job labor...AND they want higher wages for themselves?
Lots of well paying domestic jobs or cheap imported goods, can you have them both?
By the way the current American unemployment rate is near "full employment" as measured by the Fed....this whole OP is a canard.
daredtowork
(3,732 posts)Raise your hand if you believe that we have anything close to "full employment"?
On the ground it seems like we never actually recovered from 2008. A lot of people were chased back to school. Applications to SSI/SSDI skyrocketed - that's part of the reason Republicans are screaming about "welfare": they don't think that many disabled people were previously under-reported. It's more like previously the workforce could find a place to absorb more marginal people: especially with mental disabilities. When people did go back to work, many had to put together multiple shift jobs and gig jobs instead of regular full time jobs with benefits. These jobs have a high turnover rate: so the same groups of people will be going in and out of peaks of employment and troughs of unemployment. There are a lot of kids out of college who had to go back home and live with their parents.
While employment may be picking up, there is not the sense of "tons of jobs available" when you apply for work. Employers have so many to choose from they rarely bother to even acknowledge an application, despite all the effort the applicant is expected to put into researching the company and crafting a targeted cover letter. Applicants are a dime a dozen to them. They are a spec in a database.
There will not be "full employment" in the US until employers have to compete to be chosen by the employee.