Sorry to say this, but on many things ::wikipedia(”George_W._Bush”,”The W”):: has got it all wrong. Recently, there has been talk of ::wikipedia(”General Motors”,”GM”):: and ::wikipedia(”Ford Motor Company”,”Ford”):: needing a bailout a la ::wikipedia(”Chrysler”,”Chrysler”):: in 1979. President Bush said that he would not consider a bailout, because they need to produce “a product that’s relevant” to compete. Let’s look at that for a minute.
Now, I’m no huge “Buy American” proponent, in fact I drove a German car to work today, and I’m typing this while wearing a shirt that was made in India and pants that were made in El Salvador.
The main problem today is that while Americans make good products, foreign countries make good products for about 1/10th the price. Why? Because they pay their workers pennies on the dollar compared to American workers, and offer no benefits.
In the past, the conservative republican thought process was to use tariffs to combat the issue. A ::wikipedia(”Effective_rate_of_protection”,”protective tariff”):: causes foreign products to cost more, which in turn gives an advantage to domestic products.
George Bush and our Congress, under the buzz-word of “free trade”, is effectively starving the US workforce. As with most things (communism?), free trade would work in a perfect world. But free trade will never work when countries like China sell goods for less than they cost to make in order to destroy our manufacturers.
Think about the television market of the 70s-80s. There were many excellent TVs being made by ::wikipedia(”Philco”,”Philco”)::, ::wikipedia(”RCA”,”RCA”)::, ::wikipedia(”Zenith”,”Zenith”)::, ::wikipedia(”GE”,”GE”)::, and ::wikipedia(”Magnavox”,”Magnavox”)::. Japanese and Chinese electronics manufacturers waged a price war on the USA, importing TVs at below their cost to drive these companies out of business. How many of those companies still make TVs today? Not many. How many Sony, Panasonic, and JVC products do we all own?
This is what is happening with the car industry today. We need to drop the “free trade” buzz and become more protectionist! There is another reason to consider bailouts (if they are needed) of the big 2 American owned car manufacturers: Homeland Security. What would happen if we engage in another world war, but we have noone to produce tanks, personnel carriers, plane parts, etc?
The politicians pushing for “free trade” say that tariffs just lead to backlash from foreign countries that outweigh the benefits. WE CAN SURVIVE any backlash they can throw at us. If we commit to the task, there are many pressures we can use. Foreign Aid, the UN, and American technologies just to name a few. But the bottom line is, we would have to commit fully to it. This is a problem, since our politicians of today don’t have the ability to see farther than their next term.
I include both Republicans and Democrats in this. If you want to change our nation, throw the boys club out. In the upcoming elections, find and back conservative candidates, whether they have an R or D behind their name. But especially try to find Independent candidates.