We saw something this week that we have never seen before: GM announced that it will import the first 100% Chinese made car. It’s the Buick Envision.
GM is, as you might remember, the car company that survived the 2008 economic meltdown only by virtue of government money. Now that money is being used to hire Chinese workers and fire Americans. Is there any point at which the US government feels embarrassed about being taken by US multinationals and … China.
The current tariff rate on cars imported into China = 25%. Our tariff is 2.5%. The big point here is that cars are a huge value added product and almost the only one left that employs a large number of Americans. Car companies are like diamonds that every country desperately seeks because high value added = high wages. Has everyone bought into the idea that since T-shirts and TV’s are all made there, everything might as well be made there? Plenty of SUV’s are made (profitably) in the US. Is the government malevolent or stupid (= my favorite question about George W Bush). How did the citizenry become so quiescent or suicidal that it is willing to actually buy an Envision, knowing where it’s made?
People are willing to boycott goods that are made by rogue states or evil corporations (tobacco, big oil polluters) but seem to have no sensitivity to economic sovereignty and the death of the middle class. The (American) left has decided (apparently) that a job in China is just as good as a job in America and the right is in favor of anything that improves multinational profits. Our dysfunctional government is not sitting on the fence here.
It is financing our economic enemy.