Jeff Faux

Jeff Faux was the founder, and is now Distinguished Fellow, of the Economic Policy Institute.

Recent Articles

How NAFTA Failed Mexico

During the 1993 battle over the North American Free Trade Agreement, the proposal's promoters' most politically effective argument was that NAFTA would keep Mexicans out of the United States. As political writer Elizabeth Drew later observed, "Anti-immigration was a sub-theme used, usually sotto voce, by the treaty's supporters." The voce was not always sotto. "We don't want a huge flow of illegal immigrants into the United States from Mexico," said former President Gerald Ford, speaking at one of then-President Bill Clinton's pro-NAFTA rallies. "If you defeat NAFTA, you have to share the responsibility for increased immigration into the United States, where they want jobs that are presently being held by Americans." Leaving aside the xenophobia, Ford's argument made economic sense: If NAFTA were to create more jobs in Mexico, fewer Mexican workers would leave. When people can earn a decent living in their own country, they would generally rather stay put. Thus although workers in the...

No Grasp

As they emerge from the wrecked political shelter of their "yes, but" support for the war in Iraq, Democrats are consoling themselves with the prospect of a post-Saddam Hussein return to normalcy -- in America. "Remember 1992," they whisper. "After we get this war behind us, the next election will be about the economy again, stupid." But the "war" will not be over by November 2004. Having successfully morphed the threat posed by al-Qaeda into the threat posed by rogue leaders -- and having morphed both into an open-ended commitment to global American empire -- George W. Bush has created a permanent wartime presidency. As he demonstrated in last year's election, fear of another terrorist attack now trumps domestic pain. In the first two years of this administration's watch, unemployment rose by 2 million, investors lost trillions in a scandal-ridden stock market and the health-care system in many parts of the country was in free fall. Yet Democrats lost both the House and the Senate...

A Tale of Two Cities

T wo political movements representing distinct visions of the global economy will hold their annual conventions the last week of January. The World Economic Forum -- an organization of some 1,000 multinational corporations -- will meet in Davos, a picture book ski resort in the Swiss Alps. The forum was organized 30 years ago to provide a discreet hideaway where businessmen-without-borders could socialize and strategize with one another and selected heads of state. Over the years, Davos has become less an exclusive retreat to do business and more a quasi-public conference on how to make the world safe for multinational capital. This year, more than 500 government officials, media pundits, leaders of churches and nongovernmental organizations (NGOs) such as the Red Cross, and "leading thinkers" will share cocktails and ideas with the captains of global capitalism. Meanwhile, some 7,000 miles away, a much larger group of environmental, labor and other social activists will gather in...

Corporate Control of North America

T he business interests that promoted the North American Free Trade Agreement (NAFTA) have gotten their money's worth. Since the agreement went into effect in January 1994, American and Canadian corporations have moved production and jobs south to take advantage of cheap Mexican labor. Subsidized agribusinesses in both northern countries have blown small-scale Mexican farmers out of their local markets for corn, wheat and other commodities. Eighty-five percent of the Mexican banking system is now foreign-owned. Mexican production, meanwhile, is moving to even lower-wage countries. And the Mexican business partners who brokered these deals got rich. But business in all three nations has gotten a good deal more. NAFTA is a potential battering ram aimed at destroying domestic protections that temper modern capitalism. These social, labor, environmental and regulatory constraints, the fruits of more than a century of domestic political struggle in each of the three countries, are in...

Reclaiming the Party

T he Democratic party -- like Enron, the FBI and the Catholic Church -- is a dysfunctional institution that cannot reform itself from the inside. If the party were a well-run corporation whose products weren't selling, its board of directors or its CEO would bring in outsiders to give an honest assessment of what was going wrong and engage stakeholders -- workers, customers, suppliers -- in planning a new strategy. But the Democrats have neither a competent board of directors nor a responsible CEO. The Democratic National Committee is a worn-down fundraising machine with a chairman, Terry McAuliffe, tainted by the huge windfall he made on an investment in Global Crossing. U.S. Rep. Nancy Pelosi (D-Calif.), the new minority leader in the House, will bring some much-needed energy and media excitement, but she will have a difficult time rising above lowest-common-denominator politics in order to keep unity among her troops. Sen. Tom Daschle (D-S.D.) will have an even harder time taming...

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