Well, the country is in a mell of a hess isn't it? I have no solutions, just a few observations. It seems to me the beginning of this fiasco was about 15 years ago when Congress enacted laws that provided tax breaks to, and therefore encouraged, manufacturers to ship jobs overseas. The NAFTA agreement led the way down the path to desolation. If someone disagrees with my interpretations, please let me know. NAFTA was a result of people thinking we should even the playing field and improve the standard of living for all peoples of North America. Their thought was that NAFTA would bring the standard of living of all North American people up to equal that of the average American. But instead we have brought the standard of living of the average American down to the level of the other North Americans. And it came at the expense of the American people. There is no healthy economy without a huge manufacturing base and that is what the U.S. has lost over the past 15 years or so. One has to MAKE something and add value to resources. Our economy cannot subsist upon the ballyhooed "service sector jobs" for long. Without manufacturing, people cannot afford to pay for services rendered by that sector. And thus those jobs are eventually bound to disappear. They don't pay enough to have a significant impact on the economy. I wonder what our country would look like without any products made in China, Japan, Taiwan. I'm afraid that trade imbalance is almost impossible to correct. We will not make the economy whole again by paying ourselves to repair our highways, bridges, and other infrastructure. Ain't gonna happen! And how many of the currently unemployed will rush to fill those manual labor, outside, heavy lifting jobs where they have to leave home and live like nomads hundreds of miles from home? Pipedream! In my opinion, which I have come to believe is perhaps as good as anyone else's currently in Congress (shameful), we started down that path to desolation when we began losing electronics jobs overseas, the steel industry, then textile jobs, then automotive jobs, and then a flood of miscellaneous industries, like shoes, plastics, and now even food.
Because of our preferences here at home, we have told our farmers in so many words, "Look, don't plant vegetables for our tables, only plant corn and soy beans." Farmers get a lot more money from those two staples than they do from green beans, potatoes, fruit and all the rest of our comestibles. And those two items are basically not for our food supply, they are for overseas manufacturing requirements. This means the only people who can afford to raise our food are the large corporate farming conglomerations who have the resources to achieve the economies of scale. Now, we all know that there are small rural farmers in our heartlands who raise food for our table, but I am speaking on a larger scale. Simply put, if a small farmer wants to make money, he plants corn and/or soy beans. And the rest of us end up buying potatoes from Guatamala, peaches from Chile, baby food laced with melamine from China, and on and on. There is something terribly wrong when small farmers in Maine grow blueberries and TRUCK them to Washington State to be repackaged and distributed from there.
Our government leaders won't admit it because of the resulting panic (do I smell a conspiracy here? Unfortunately, when we mention a "conspiracy" most people tune out and ignore it), but the obvious truth is that we are going to run out of money to buy our food. We are already running out of money to buy big ticket things like homes and automobiles and we no longer have money to invest for our future (where would you invest it if you had it?)
So, our clothes, our automobiles, an alarming amount of our food, and countless little "daily necessities" we are buying from overseas. Does anyone doubt we are running out of money to pay for these things?
Whenever we experience a catastrophe, our society always needs to find a scapegoat -- the guilty person -- the culprit who caused it. We make a big splash about it, let the courts drag on for several years until the emotion is gone and sentence the guilty to a couple of years and all is forgotten. So where do we find the guilty people for putting us in this current mess? 'Don't have to look very far, do we? Check the nearest mirror. You did it to yourself when you elected politicians to represent you that only had their own best interests at heart. Listen up folks, MOST politicians don't run for office to do public service -- they run for office to acquire power, make lots of money, and secure lifetime health benefits and exorbitant retirement salaries. You are criminally naive if you think otherwise. We elect our politicians based upon their looks, their speeches, and their poise. Heaven forbid that we elect someone based upon their experience and past record and proven character (this is not a diatribe about Obama and McCain directly, but....) We elect people based upon who we WANT them to be, rather than who they ARE. And then when they fail to deliver their promises, take bribes, sell their influence, sexually molest young boys and girls, carry on illicit extramarital affairs, and ignore the desires of their constituents (Somewhere along the way, these politicians forget they were elected to represent the wishes of the voters and they come to believe they are smarter than their constituents so therefore "I will vote for what I believe" -- "No, vote for what your constituents want." And when they end up performing dishonorable, illegal, immoral, and lewd acts, we shake our heads and say there is nothing we can do. It's a long list of "dishonorables" -- not just the headline grabbers from Louisiana, Alaska, Illinois , Massachusetts, New Jersey, New York, but the seamy little political hacks from Kentucky, California, Nevada, and North Carolina.
Culprits so far -- politicians. Look, if you don't think they are crooked, for what purpose do lobbyists exist? To spend money to "bribe" or influence politicians behaviors. No other reason. Next culprit -- that person you see in the mirror. You make poor, uninformed choices for politicians and when they are exposed to be a child molester or whatever, you do not raise a "hue and cry" to oust them. You return them to office year after year because you believe they will do something beneficial to your state's fiscal advantage. Kentucky, Massachussetts, West Virginia, and South Carolina immediately come to mind!
And now (December 2008) when hundreds of thousands of Americans are losing their jobs, their retirements, their health insurance, their dreams of college educations, and grappling with the worst financial crisis since the Great Depression and when Congressional members fail to compromise on a Big 3 bailout because the CEOs will not work for one dollar a year, Congress receives a $4,700 yearly raise! That amounts to a $2,500,00.00 a year cost to the American taxpayer at a time when that money would be much better spent helping seniors below the poverty line struggling to pay heating, medical, and food bills. Don't you just love it?
Our generation has been brought up to think we are smarter than the previous and the next generation is smarter than the current. It simply is not true. The previous generation went to a REAL war to defend America and came home and built this country to what it was forty years ago. You wanted a decent, good-paying job? Walk down the street and see how soon a manufacturer grabbed you. There was pride in America and pride in what America built. But then you turned your backs on America's jobs and said "Hey, this is something different and because it is new, it must be better than the old." So I'll buy a Toyota or a Honda or an Audi or Mercedes and just because I bought it, it is better than something I did not buy. I personally had a new 1973 GM car and numerous times I turned the ignition key because it was so quiet I didn't think the car was running. And what was road noise or wind noise? Unheard of. Power steering was effortless, and you never knew when the a/c or heater was running because it was so quiet. But the Japanese and malcontents convinced everyone that American cars had poor quality and obsolete styling. So we started building autos with the "European flair"! And the American auto manufacturers have been trying to "catch up" ever since! You never blinked an eye when you bought that foreign car that was made by companies literally headed by the former Japanese and German officers of the armies dedicated to our destruction. You turned a blind ear when "Mr. Toyota" himself said in the mid-60s, "We will bury you!" And now those companies build their products here in America and have become "American" cars. Next time you travel down Interstate 26 in South Carolina toward Charleston, get a calculator and count the number of trucks you see hauling Japanese freight just off the boats toward Smyrna, TN, or Spartanburg, SC, or Georgetown, KY to their automotive plants -- filled with assemblies and piece parts made in Japan or Germany. And understand that each one of those assemblies provided work "back home" in Nagasaki to outside suppliers and engineering services, and machine tool design and work, and even building the equipment to make the assemblies. Assembly plants are just the tip of the ice berg when it comes to the economic impact of large industry. And let me know how many semi loads you see of parts entering this country bound for the Big Three.
Big 3 automakers create 79 U.S. jobs per 2,500 cars sold in America
Foreign automakers create 33 U.S. jobs per 2,500 cars sold in America
As I write this, the Russian government is grappling with the worst economic crisis in a decade, as oil prices tank, the ruble slides and unemployment steadily creeps up. To prop up demand for the ailing Russian auto industry, President Putin announced on Friday, Dec. 19, 2008 there would be a fifty per cent tariff placed on all imported used cars and fifteen per cent on new imported cars. This is the same tactic the Japanese used for years and years to keep out American made automobiles. I do not know if Japan still practices that today....
And remember that the Big Three are the ones who led the way in providing WW II materiel to win the war and ensure we don't speak German or Japanese today. You smirk and say "T''would never have happened!" You are very mistaken. My father and most of my uncles had to go to war then for two to four or five years to prevent further atrocities such as the Holocaust, Pearl Harbor, the Bataan death march, and the literal rape of thousands of Chinese girls. One uncle was killed the first week he was in France by a German sniper. They ALL came back changed and horrified and determined to never allow that to happen again. But today you say, "Ah well, that was a long time ago and why hold a grudge?" My wife's father during WW II was in training to become a glider pilot in Europe -- an inevitable suicide mission but one that was necessary. At their post in Texas, they were fed like kings every meal because there was the feeling that any one of those meals might have been their last. And after the war, when the U.S. prohibited Japan from having a standing armed forces, we promised we would protect them from any future aggression. So they avoided the costs of maintaining an armed force and dedicated that money to industrializing from the ground up. They now had the resources and the freedom to build new industries. For American manufacturers, it was back to the same tired old buildings, layouts, and constrictions. The Japanese government financially backed new industry with low interest loans and currency manipulation and discriminatory tarriffs and penalties (if not outright prohibitions) that kept American products out of Japan.
But today's generation doesn't want to hear about such ancient history. No, it isn't ancient history, it's just not within your individual recent memories. But I'll bet your parents or grandparents can tell you of the loss, and heartache, and fear, and sacrifices and hard work they went through to turn this country over safely to the next generation.
SO just keep buying those foreign products and realize one day before long the money WILL run out. And not only will there be no money but precious little food to buy.
On December 19, 2008, CNN Money reports that according to the industry publication, The Harbour Report, that ranks auto factories by their efficiency, or the number of worker-hours required to produce a car, nine out of the 10 most efficient auto plants in North America are unionized plants run by the Big 3. The 10th is a unionized plant jointly run by GM and Toyota in California.
CNN also reported that the average hourly wage rate is not significantly different between the Big 3 and foreign factories in the U.S. The exaggerated stories that people like to jump on and repeat, such as a unionized auto worker cannot stop in the plant and pick up a piece of trash because that belongs to a differently classified employee, are just simply bunk. I am not defending unions and their irrational demands. They are a necessary evil that has gone too far. Most of the foreign plants in the U.S. are non-union whereas most of the Big 3 plants are unionized. Don't kid yourself -- foreign auto plant workers in the U.S make a wage almost identical to the unionized plants -- and that is because of the "fear" of the unions. The foreign plants know that if they don't pay an equitable wage, their plants will be unionized. The big difference between foreign and domestic auto manufacturing costs lie in the "legacy" costs -- insurance, pensions for retirees, benefits, etc. To date, the foreign manufacturers have not had to bear that burden and thus reap the benefit of a younger work force. I wonder what would happen if each of us who works toward that day when we can "draw retirement" regardless of our type of work, and after 30 or 35 years, were to suddenly have those taken away as being too costly for the provider.
Answer the following twelve questions and check out the answers afterward.
Twelve Easy Pieces:1. Which country has brands that occupy 2 of the top 3 spots for long-term reliability?
a. Germany
b. Japan
c. Korea
d. United States
2. As of August 2007, which manufacturer had the most recalled vehicles in the U.S. for that year?
a. Chrysler
b. Ford
c. GM
d. Nissan
e. Toyota
f. Volkswagen
3. Pick the brand from each group that has the highest initial quality.
a. Acura, BMW, Cadillac (all luxury makes)
b. Honda, Mercury, Nissan (all non-luxury makes)
c. Acura (lux), Chevrolet (non-lux), BMW (lux), Mazda (non-lux)
4. Which midsize sedan has the highest initial quality?
a. Accord (Honda)
b. Altima (Nissan)
c. Camry (Toyota)
d. Malibu (Chevrolet)
5. Which large sedan has the highest initial quality?
a. Avalon (Toyota)
b. Grand Prix (Pontiac)
c. Sable (Mercury)
6. Which mid-size pickup has the highest initial quality?
a. Dakota (Dodge)
b. Ranger (Ford)
c. Tacoma (Toyota)
7. Which car is the most economical overall?
a. Aveo (Chevrolet)
b. Fit (Honda)
c. Prius (Toyota
8. Which car did the L.A. Times describe as " a better car than BMW or Mercedes or Lexus or Infiniti"?
a. A6 (Audi)
b. CTS (Cadillac)
c. RL (Acura)
9. Which company makes the winner of the 2008 "Green Car of the Year" award?
a. Chevrolet
b. Honda
c. Toyota
10. Which car was selected by the North American automotive press corps as the "North American Car of the Year for 2007?
a. Aura (Saturn)
b. Camry (Toyota)
c. Fir (Honda)
11. Which car won the same award for 2008?
a. Accord (Honda)
b. Altima coupe (Nissan)
c. Malibu (Chevrolet)
12. Which company had a luxury vehicle, a midsize sedan, and a large truck removed from the Consumer Reports recommended vehicles list in October 2007 because of mounting quality problems?
a. Chrysler
b. Ford
c. General Motors
d. Hyundai
e. Toyota
f. Volkswagen
Answers:1. United States, per J.D. Power Vehicle Dependability Study. Mercury and Cadillac are in the TOP 3, along with Lexus. And in 2007, Buick was tied with Lexus for the top spot.
2. Volkswagen. According to Business Week, Volkswagen had the most recalls at this time a year ago. The second worst was Toyota.
3.
a. Cadillac (better than both Acura and BMW)
b. Mercury (better than both Honda and Nissan)
c. Chevrolet (better than Acura, BMW, and Mazda)
According to J.D. Power Initial Quality Survey
4. Chevrolet Malibu has better initial quality than any competitor, including Honda Accord, Toyota Camry, and Nissan Altima. The Ford Fusion also beat all 3 Japanese competitors. According to J.D. Power 2008 articles and news releases.
5. Pontiac Grand Prix, beating the Toyota Avalon. Two other cars beat the Avalon -- Mercury Sable and Mercury Grand Marquis. According to news release from J.D. Power.
6. The Dodge Dakota has the best quality. The Ford Ranger also beat the Toyota Tacoma. According to J.D. Power.
7. Chevrolet Aveo -- the Honda Fit was #3 and the Toyota Prius was #34. According to Edmunds.com.
8. Cadillac CTS. According to the L.A. Times.
9. Chevrolet Tahoe Hybrid. The Tahoe's 21 mpg city gas mileage is equal to Toyota's 4-cyl, Camry sedan. According to greencar.com.
10. Saturn Aura beat out the Honda Fit and the Toyota Camry. According to northamericancar oftheyear.org.
11. Chevrolet Malibu, beating out the Cadillac CTS and the Honda Accord. According to northamericancaroftheyear.org.
12. In October 2007, Toyota's much publicized quality problems resulted in Consumer Reports removing from their recommended vehicle list, the Lexus GS, the Toyota Camry V6 sedan, and the Tundra pickup.
That's my rant for the week folks. I know I may have upset a few apple carts but if so, just tune me out....
