Arkansas Democrat-Gazette

Take direct route to correcting a poor decision.

- DALLAS MORNING NEWS

There are reasons to be optimistic this Labor Day. The unemployme­nt rate is low, at 4.3 percent. Hundreds of thousands of new jobs are being created every month.

That said, economic anxiety still lingers. President Donald Trump, trying to ease that anxiety, talks tough about the North American Free Trade Agreement and the possibilit­y of implementi­ng tariffs.

Admittedly, NAFTA is now over 20 years old; it could stand some updates. But it would be easier to get Mexico and Canada to the table to discuss if Trump weren’t so antagonist­ic.

NAFTA unfairly bears the brunt of the blame for manufactur­ing job losses in the U.S. The reality is, manufactur­ing output in the U.S. has never been higher. Yes, the U.S. lost 5.6 million manufactur­ing jobs between 2000 and 2010. However, according to a study by the Center for Business and Economic Research at Ball State University, 85 percent of those are attributab­le to technology, particular­ly automation.

Part of the problem appears to be a lack of understand­ing by Trump of trade deficits. Trump will say we’re “losing” $58 billion to Mexico, as if the U.S. is writing a check. The reality is, the U.S. is importing more from Mexico than Mexico is importing from the U.S., and so Mexico is buying U.S. Treasury bonds. Consumers in both countries still benefit, despite the trade deficit.

NAFTA has resulted in lower prices for consumers, particular­ly for gasoline and food. The people who benefit most are the working poor. It’s one thing if you’re doing your grocery shopping at Whole Foods and buying gifts at specialty shops. But for people who need do their shopping at stores such as Wal-Mart, NAFTA helps keep those prices low.

Trump’s hints at protection­ism—in the form of tariffs as offsets against trade deficits—hurt more than they would help, despite the rhetoric. Imposing tariffs would result in higher prices and leave the U.S. open to retaliator­y measures, like tariffs on U.S. exports and complaints filed with the World Trade Organizati­on.

On this Labor Day, many of the working poor in this country won’t be taking it easy at a backyard barbecue. They’ll be laboring. They need a president who won’t make their lives harder by enacting policies that sound good but will hurt the most vulnerable among us.

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