Part two: The Northern aggression during the Jim Crow era and what it means today to Mexico's new agreement with the US: Part two

Part two: The Northern aggression during the Jim Crow era and what it means today to Mexico’s new agreement with the US. 

US - Mexico NAFTA agreement:

There is a discussion of raising auto worker wages in Mexico as part of the NAFTA agreement. On average, in Mexico, assembly workers make $8-$10 an hour and parts plants workers make $4-$6 dollars an hour including benefits.

 If the agreement holds, the same effect of the 1930’s Davis Beacon Act could eventually affect Mexico if we can keep competitive wages near the same in America.  Jobs will be more inclined to return to America, and if they do, it will be to our southern states and not Detroit, is my guess. 

The average labor cost between the big three in Detroit is around $55.00 (including benefits) an hour. A non-union plant in Alabama making Hyundai vehicles earn about 42.00 an hour plus benefits. A two-tier pay system developed to help companies compete during the recession has ended with new agreements to increase wages over the next 6-8-years in union shops. While this will create high paying jobs again in America, the North will still have to compete with lower pay jobs in Mexico and non-union southern shops.

 I guess the question becomes, can autos be made in Mexico with an average pay of $16.00 an hour plus benefits and ship autos to the US tariff-free and, still be cheaper than making these vehicles right here in the US? The answer may be yes, it will still be cheaper to make autos in Mexico. As long as the Unions pressure automakers to increase wages to feed Democrats to get elected. Democrats, in turn, will protect Unions with favorable legislation and no benefit will be realized. It is as if no one has learned a thing over the past 40 years when we started this NAFTA agreement in 1979, to begin with.

In my opinion, the United Auto Workers (UAW) Union and Democrats have contributed to the fall of manufacturing in America for decades. Unions have throughout history created scenarios where overseas labor has been sought after to satisfy publically traded shareholders. The UAW consistently puts pressure on non-union manufacturing plants in the south to join the union. Manufacturers threaten to not build and leave if unions succeed. The Democrats have long held hands with powerful Unions creating an environment of reason, to move to manufacture out of the US. Thus, creating a poverty-stricken, semi-skilled population who will blindly vote for the Democrats promising union jobs and “we will take care of you.”. The cycle will never end it seems.

To think, since 1931 and with the enactment of a racist bill to being with, The Davis Beacon Act, promoting prevailing wage still has an impact in today’s market. Semi-skilled workers still cling to their politicians and UAW promises, only to experience a fleeting utopia followed by poverty. This has happened in many trades such as manufacturing and construction, again and, again and, again.  Free trade is the only way forward if we are to compete globally and, the “right to work state” must prevail and not allow Democrats to unionize the country.

John Frantz https://fee.org/articles/davis-bacon-jim-crows-last-stand/

Walter Williams Race and Economics: How much can be blamed on discrimination.

www.autonews.com/article/.../ford-finds-mixed-blessing-in-end-of-tiered-wages

www.theatlantic.com/business/archive/2015/10/what-the-unions-won/412501/