Tuesday, June 28, 2016

Massive trade deals like pending TPP put constant downward pressure on American wages-Wessel, Oct. 2015 UK Guardian

Massive trade deals like pending TPP result "in constant downward pressure on American wages."... 

Oct. 2015 UK Guardian article:

10/9/2015, "Wikileaks release of TPP deal text stokes 'freedom of expression' fears," UK Guardian, Sam Thielman in NY  

"Intellectual property rights chapter appears to give Trans-Pacific Partnership countries greater power to stop information from going public"

"Michael Wessel was one of the advisers who was asked by the US government to review what he said were woefully inadequate portions of the document. Wessel said the thrust of the TPP does nothing for Americans. “This is about increasing the ability of global corporations to source wherever they can at the lowest cost,” he said.

“It is not about enhancing or promoting production in the United States,” Wessel said. “We aren’t enforcing today’s trade agreements adequately. Look at China and Korea. Now we’re not only expanding trade to a far larger set of countries under a new set of rules that have yet to be tested but we’re preparing to expand that to many more countries. It would be easier to accept if we were enforcing today’s rules.” 

Wessel said that ultimately, the countries currently benefiting from increased outsourcing of jobs by American firms aren’t likely to see wages rise above a certain level. “If you look in other countries, Mexico and India and others – there’s been a rise in the middle class but there’s been stagnation for those we’re hoping to get into the middle class,” Wessel said. Companies are scouring the globe for countries they can get to produce most cheaply.”

That, he said, results in constant downward pressure on American wages. “Companies are not invested here the way we’d like them to; they’re doing stock buybacks and higher dividends,” Wessel continued. “They may yield support for the stock-holding class but it’s not creating jobs.”...

“The text of the TPP’s intellectual property chapter confirms advocates warnings that this deal poses a grave threat to global freedom of expression and basic access to things like medicine and information,” said Evan Greer, campaign director of internet activist group Fight for the Future. “But the sad part is that no one should be surprised by this. It should have been obvious to anyone observing the process, where appointed government bureaucrats and monopolistic companies were given more access to the text than elected officials and journalists, that this would be the result.”"... 


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