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By the 1990s, the US was stepping into the “Information Age”. This would coincide with the presidency of Bill Clinton. One can also see this as a period when global connections really became more visible and faster, in part because of new trade agreements around the globe. In North America, there was NAFTA—the North American Free Trade Agreement. By the late 1990s the US economy was entering a dynamic period of growth.
Discuss the following topic related to American history under President Clinton:
Discuss the “economic rebound” of the late 1990s under President Clinton.
Reply to Peer post:
Bill Clinton signed the North American Free Trade Agreement (NAFTA) into law in December 1993. The trade agreement was in use by January 1994. Clinton used this agreement to encourage a broader world-trade pact between countries in the world. NAFTA was a trade pact between the US, Canada, and Mexico. It eradicated tariffs and trade restrictions in the three nations. Signing NAFTA was one of Clinton’s primary victories in his term as the President of the United States.
NAFTA tripled trade among the three countries in 2017. It enhanced economic output in the three countries because its implementation increased the United States’ economic growth by 0.5% in a year. The growth of NAFTA created more jobs for youths living in Canada, Mexico, and the United States. Furthermore, NAFTA tripled foreign trade investment (FDI) among member states. For instance, in 1993, the United States increased FDI from $69.9 million in Canada to $352.9 million in 2015. NAFTA reduced the prices of products and services in the three countries. Today, the United States can import oil from Mexico at reduced prices because of the lack of tariffs among the three countries. Gas prices have significantly decreased, leading to the reduction of transport costs. Food costs have also reduced because of the NAFTA agreement. In addition, NAFTA has improved the US government’s spending.
On the other hand, NAFTA contributed to the loss of jobs. A report estimated a significant reduction in the number of jobs in the US because most businesses moved oversees. This agreement profoundly affected manufacturing companies, textile industries, and electrical appliances industries. Job migration has suppressed wages in the United States. Many companies threatened to migrate to countries such as China if workers asked for better wages. Moreover, workers had to deal with labor and environment abuse to keep their jobs.
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