Japanese auto makers like Toyota and Honda are hiring thousands of American workers. But they are not hiring them in the rust belts.

They are avoiding the rust belts, just as domestic businesses are avoiding the high costs that have been piled on over the years by both unions and governments in the rust belt regions.

Where does NAFTA come into the picture?

International trade is just one of the many ways in which the competition of lower cost producers can cause higher cost producers to lose customers and jobs.

Jobs are always disappearing. The big question is why they are not being replaced by new jobs. Rust belt policies that drove out old jobs also keep out new jobs.

NAFTA makes it easier for politicians to blame the problem on foreigners. In fact, foreigners make ideal scapegoats for politicians. After all, people in Japan or India can't vote in American elections.

Americans who can vote would do well to start spending more time thinking about economic realities, instead of being swept away by political rhetoric.