Ok.....this is the story of the economy. During Clinton's term, he signed NAFTA into existence. NAFTA boosted US production by taking jobs that were going to china and moving them to mexico so they could keep their construction or manufacturing facilities in the US. Also it allowed companies such as material manufacturing to ship to mexico with no tariff as long long as it was a high % US Material (85% I believe). After the success of Nafta, jobs that would have gone to the far east stayed. Yes, a lot of people lost work, but they were gonna lose it to China anyway. Now here's where the Gov't fucked up. Late in his term Clinton signed a bill that for 10 years it limited how much could be imported into the US from China, keeping all the work in Mexico and Central America out of US made parts going. For 10 years, through the 2nd Clinton term and the 3/4 of Bush's presidency, this was an incredible economic win. When the bill expired, there was a rush to try to make a new extended one that was shot down by congress. What happened then is why we are where we are. All the jobs in Mexico and Central America moved to china. They had built up a surplus of goods in such enormous amounts that they flooded the market.
Within 2 years, hundreds of thousands of Americans had lost their jobs. Hundreds of thousands of Mexicans and Central American companies dropped their manufacturing services altogether. Now, around 2008, we sit with all these people that had been depending on the US fabrics/materials to construct their products suddenly there are no jobs. The unemployment rates go up to 50% in some countries, because the money we had been pumping in down there had their countries go from complete poverty to above the 3rd world status.
Now we are sitting with a huge deficit, owed mostly to china. This lets china keep their currency artificially low. We float their currency value, they call in the debt card. Now we have thousands of people crossing the border and it's our own fault, because they had bigger families, expecting the American money to keep flowing because Clinton had promised it would. And we have large companies like Wal-Mart that buy based on price alone, and China is suddenly poised to become the world's leading super power within the next 30 years.