Slight problem there, Toyota employs Americans yes, but their profits don’t go to America.
I’m no expert on this, but it seems to me that the UAW/CAW is the problem here, prior to Obongo communizing GM anyway.
The unions are strongarm thugs and need to be removed from the equation. Yes, they were necessary when they were formed, but their usefulness is over.
How long before the Obama administration backed unions force Toyota to pay those outrageous salaries also?
I'd rather any profits go to Japan than to Obama.
No, Toyota’s profits don’t go to America, but their CARS go to America. We gain from trade with other countries, just like you gain from trading with people in other states or across town. The national boundary doesn’t change the underlying economic principles at work.
Don’t fall for what economists call the money illusion, i.e. the impression that money is wealth, and that if money is leaving a country (because that country buys imported goods more than domestic goods), then it is losing wealth. Not so. As Adam Smith laid out hundreds of years ago, the wealth of nations consists of its goods and services, not its money supply, which is merely a medium of exchange, it allows the trade of real wealth to occur.
Many countries don’t even produce enough food to feed themselves, such as England or Japan, yet they are far from starvation, and buying food from overseas, or “sending money out of the country” doesn’t make them any poorer. It makes them wealthier by the amount of food they buy. The same holds true for cars, stereos, etc.
If it’s cheaper to buy screws overseas versus ones made here, then America gains by buying screws overseas and not buying the ones made here. The temporary loss of a job for the American screw-makers is more than offset by the overall gain to the country as the previous amount of money we spent on a given amount of screws can now be spent on that same amount of screws AND whatever else the remaining money will buy. Thus we are richer in totals goods and services.
See Thomas Sowell’s Basic Economics, or any of the books on my recommended reading list.
“...Slight problem there, Toyota employs Americans yes, but their profits don’t go to America....”
If only GM had profits!
Slight problem there, Toyota employs Americans yes, but their profits don’t go to America.
Who owns Toyota?.....