What do these towns have in common??
San Antonio, Texas
Buffalo, West Virginia
If you lived in one of these towns you’d know- if you don’t you probably wouldn’t.
Well what they all have in common is that they all manufacture what used to be considered “foreign” cars.
The first 4 towns manufacture Honda’s, the next 6 make Toyota’s the next one makes Kia’s the next Hyundai and the last Mercedes. Why did foreign car manufacturers start making cars in the ole USA- one simple reason IMPORT QUOTAS imposed by Ronald Reagan to counteract the abusive import discrepancy between us and Japan. At the time Japan had a ‘Yuge’ trade surplus with us- due to importing of actually better built and better priced cars.
But Reagan wanted to revitalize American car production for the benefit of the American worker. An unwanted negative for Reagan and the Republicans in general, is that the UAW union predominately financially support the Demonrat party. But this would ultimately have a positive effect on the economy and the tax base.
” Free Trade” is not so free. The Globalists will tell you that we now have a global economy and this is the way forward. The Global economy is a catch phrase which literally means that the World imports to us cheap labor produced products and we export to them our hard earned money. Remember when Obomber said that these jobs are lost and NEVER coming back- regardless of the magic wand one of the candidates thinks he has? Well, well, well- the magic wand was a telephone- some negotiating and the cutting of the tax rate for re-repatriated moneys (and Trump had it)!!
I would only use this phrase in the context of trade, as it is normally used as a reactor to make a case for Socialism- “Level The Playing Field”. How can US manufacturing compete on a Global basis- if the average yearly wage in China is $8,000 US dollars and our poverty level (for a family of 4) is 300% times then that amount at $25,000?? That’s why it’s cheaper to import oranges from Guatemala than to produce them and distribute them in my home State of Florida!! Labor costs. These discrepancies in income necessary to provide and sustain a livelihood are what cause us to have these huge trade imbalances, the field is truly not level.
Globalists will tell you that that is just plain economics and “economies of scale”- but some nations provide a much better standard of living than others, and this factors into the equation, and it has to.
So if a left leaning auto worker is reading this, and you work at one of the plants listed above (it’s an incomplete list- there are more) you can thank the evil (as CNN portrays) President Ronald Wilson Reagan for your job, and quite possibly your neighbors job and your local economy as a whole. Those same Democrat “leaders” that blindly receive that portion of you union dues- would rather have you on the food line and in poverty- with the lack of self respect that keeps you down, yet keeps you voting for them every election cycle.
Great article that shows the shortsightedness of the left:
As with ANY economic policy pick one:
1) Short term benefit for long term pain!
2) Short Term Pain for Long Term Benefit!
It’s “either / or” – you can’t have it both ways. I experienced first hand the role that import quotas (same effect – same argument- same benefit as Tariffs) had on the US automobile industry. I walked into a Honda showroom in the 80’s to buy a Prelude (really hot car at the time with 4 wheel steering), and the price was marked up about 1500 dollars over the sticker price. I was in college studying of all things economics at the time. When I inquired about the price discrepancy to the salesman- he explained it very clearly- Honda could only import a limited number of Preludes and the demand was high so the dealer could adjust the price accordingly (they had a slick name for it like “Dealer Imposed Market Force Surcharge blah blah blah”. The buyer at the time got jacked a few grand (short term pain), yet Honda Corporate soon realized the billions (or at least 10’s of millions) they lost in opportunity cost by not being able to sell as many cars as the public wanted so they built plants in America and HIRED American workers!! (Long term GAIN!).
We’ll hear the same ole rhetoric that was heard during the Reagan years, and we’ll hear the same ole Globalist shill Republicans and Dem Deep State’rs kicking Trump in the shins, yet people who can put food on their table- pay a mortgage and send their kids to college- can thank Ronald Reagan in their prayers tonight!
(And while you’re at it- see if you can get the portion of your Union dues used for political persuasion, refunded and send it to the President Donald J. Trump re-election campaign, that is if you want your children to have a future like you did!)