Trade Wars Brewing In Economic Malaise

Washington Post ^ | Friday, May 15, 2009 | Anthony Faiola and Lori Montgomery

[hedgetrimmer]

Which is more globalist: the BMW made in South Carolina or the Chevy built in Mexico?

[PugetSoundSoldier]

You tell me! One is built with American labor for a German company; the other is built with foreign labor for a US company. If I chose, I'd say the Chevy made in Mexico is more globalist; the value add is from the labor, and why not keep that here?

Can you point to a US car company that only uses US sourced parts and labor? If not, then what is the option? What pressure can we bring to change the situation?

How about DVD players? Do you have one? What brand is it? Why didn't you buy an American brand DVD player or TV?

Trying to deny that it's a global economy right now is like trying to command the tide to stop. Remember, as Ronald Reagan said:

Protectionism is destructionism

Buy American is all well and good as long as the company is competitive and should be rewarded. Buying American for the sake of buying American can result in propping up companies that SHOULD die (like GM or Chrysler), resulting in a total drag on the US economy.

In the 1970s and the 1980s, Japan was to destroy the US car makers with their cheap, reliable, fuel sipping cars. Well, Ford is still very strong, and GM was going OK too (Chrysler, after the MB buyout was destroyed). Quality, efficiency, and price were competitive with the Japanese.

Did the Japanese brands get worse, or did the US brands get better? I want to make sure we encourage companies to respond as the Ford and GM did - get better in quality, features, and price. Don't live on nationalism, live on being a better company.