Mitt Romney's campaign has made a big deal of Jeep expanding its manufacturing in China, claiming Jeep is outsourcing jobs and blaming it on President Obama. Is he also going to blame George W. Bush for all the outsourcing that was done between 2000 and 2008?
The fact is that Jeep is expanding its total manufacturing, including manufacturing Jeeps where they will be sold.
What does he think of Honda, Toyota, Hyundai, Nissan, Subaru, Mitsubishi, BMW, Mercedes-Benz, and Volkswagen having factories in the U.S.? Are they exporting jobs from their home countries? Or expanding closer to their markets. Maybe it's the shipping companies that should complain, all that trans-oceanic traffic that is lost and the associated jobs.
See "'Transplant' auto factories in USA turn 30 this year", James R. Healy, USA Today, 2012-04-03.
As Thomas Friedman wrote, "The World is Flat".
Showing posts with label export. Show all posts
Showing posts with label export. Show all posts
Wednesday, October 31, 2012
Thursday, July 19, 2012
The fallacy of Buy American
Once again the cry "Buy American" is heard from high and low places. One was Chip Cravaack, R-MN8, putting a statement into a transportation bill that the steel used in highways should be American-made.
A little aside I can't resist. Aren't the Republicans the one who are all for free markets and no government intervention? Shouldn't the free market decide the best quality for the lowest price? Not some government bureaucrat or politician?
I try to buy American and buy local, but in general this is only a preference, not an iron-clad rule. We buy local produce when it is available. I love my made-in-Minnesota Red Wing work boots and some of my made-in-America yard equipment. For decades I wore 36-30 Levis and then they suddenly became too long. It wasn't me that changed; I found the 30-inch inseam was actually over 31 inches! Could that have been because Levi Strauss outsourced the making of Levis and that somebody didn't make a proper conversion to metric?
On the other hand we own one American vehicle and one Japanese vehicle, each bought for specific reasons, not the country of manufacture. Can you find an American-made digital camera? Same for most computers and related stuff. The software might be made anywhere. I prefer a French music-composing program to a Minnesota program. Do you know anyplace in the U.S., other than Hawaii or greenhouses where bananas are grown? Would you rather have chicory than coffee?
On the other hand, we should be grateful that many other countries aren't pushing too strongly on Buy English or Buy German, and surprise, Buy Chinese.
Personally, I'm very glad that in the 60s and 70s European governments weren't pushing very hard to buy only European computers. Otherwise, I wouldn't have been able to live in Europe for six years maintaining software for Univac computers made in Minnesota. Our customers included Lufthansa, the French Army, and the Swedish Police.
Minnesota doesn't make many computers now-a-days, but many medical devices are designed and made in Minnesota. If we don't buy goods from other countries, should they buy our medical devices?
Farmers in the U.S. are glad that they have a big export market for all kinds of agricultural products, from grains to meat. Although India still has many import restrictions "Indian Consumers already buy almonds and grapes from California, and apples by the truckload from Washington." Adam Belz, "Minnesota looks for a bigger taste of India", Star Tribune, 2012-07-19
The military-industrial complex is probably very glad that military establishments around the world aren't restricted by Buy Nationally policies. Even the most militarily-oriented Congress couldn't raise enough taxes to buy all the weapons that the U.S. military-industrial complex could produce. So, those countries buying U.S. military hardware have to raise funds to purchase the hardware. To do that, they have to sell goods and services outside their own countries, for example, oil!
One of the most interesting news items is the direction of parts for wind turbines passing through the Duluth Harbor. Big blades are coming from Europe to U.S. destinations. Big blades are going out to many other countries, the latest being Brazil. Probably each set of blades had different features that met the requirements of the buyers.
And then there is the name game. Some years ago a U.S. city was considering buying a piece of heavy equipment. The city council favored Caterpillar over Kubota because the later was an American name. Surprise! The Caterpillar was made in Japan and the Kubota was made in the U.S.
It isn't easy being a free-marketer and a protectionist at the same time.
A little aside I can't resist. Aren't the Republicans the one who are all for free markets and no government intervention? Shouldn't the free market decide the best quality for the lowest price? Not some government bureaucrat or politician?
I try to buy American and buy local, but in general this is only a preference, not an iron-clad rule. We buy local produce when it is available. I love my made-in-Minnesota Red Wing work boots and some of my made-in-America yard equipment. For decades I wore 36-30 Levis and then they suddenly became too long. It wasn't me that changed; I found the 30-inch inseam was actually over 31 inches! Could that have been because Levi Strauss outsourced the making of Levis and that somebody didn't make a proper conversion to metric?
On the other hand we own one American vehicle and one Japanese vehicle, each bought for specific reasons, not the country of manufacture. Can you find an American-made digital camera? Same for most computers and related stuff. The software might be made anywhere. I prefer a French music-composing program to a Minnesota program. Do you know anyplace in the U.S., other than Hawaii or greenhouses where bananas are grown? Would you rather have chicory than coffee?
On the other hand, we should be grateful that many other countries aren't pushing too strongly on Buy English or Buy German, and surprise, Buy Chinese.
Personally, I'm very glad that in the 60s and 70s European governments weren't pushing very hard to buy only European computers. Otherwise, I wouldn't have been able to live in Europe for six years maintaining software for Univac computers made in Minnesota. Our customers included Lufthansa, the French Army, and the Swedish Police.
Minnesota doesn't make many computers now-a-days, but many medical devices are designed and made in Minnesota. If we don't buy goods from other countries, should they buy our medical devices?
Farmers in the U.S. are glad that they have a big export market for all kinds of agricultural products, from grains to meat. Although India still has many import restrictions "Indian Consumers already buy almonds and grapes from California, and apples by the truckload from Washington." Adam Belz, "Minnesota looks for a bigger taste of India", Star Tribune, 2012-07-19
The military-industrial complex is probably very glad that military establishments around the world aren't restricted by Buy Nationally policies. Even the most militarily-oriented Congress couldn't raise enough taxes to buy all the weapons that the U.S. military-industrial complex could produce. So, those countries buying U.S. military hardware have to raise funds to purchase the hardware. To do that, they have to sell goods and services outside their own countries, for example, oil!
One of the most interesting news items is the direction of parts for wind turbines passing through the Duluth Harbor. Big blades are coming from Europe to U.S. destinations. Big blades are going out to many other countries, the latest being Brazil. Probably each set of blades had different features that met the requirements of the buyers.
And then there is the name game. Some years ago a U.S. city was considering buying a piece of heavy equipment. The city council favored Caterpillar over Kubota because the later was an American name. Surprise! The Caterpillar was made in Japan and the Kubota was made in the U.S.
It isn't easy being a free-marketer and a protectionist at the same time.
Wednesday, October 27, 2010
Weak economy with record profits?
I've long thought that blaming government policies for the "weak economy" has been so much hooey and that blaming the Democrats alone for all the "bad" government polices has been even more hooey.
Morgan Heusel looks at all the factors in "Why Corporate America Isn't Hiring". He has a long list of factors including that many companies have learned they are getting just as much work from fewer employees and that older employees are staying longer.
I also note that the Star Tribune has been reporting many Minnesota MANUFACTURING companies have seen increased business, especially exports, and profits. And so many letter writers complain, "We don't make anything in America anymore." Hooey!
Heusel concludes with "we have a jobs crisis not because of a lack of demand, but because we're suffering from a mental recession of fear and uncertainty."
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