Wednesday, September 28, 2016

When is Trump moving HIS products back to the US? Part 1

Trump big-mouth tiny-hands talks big about trade.

He brags about his many businesses and the items with his name on them.

So when is Trump going to promote American companies by putting his name on ONLY products here? Oh, wait ---- when he does that, those companies fail.  ONLY companies owned and run by someone else using his name seem to do well consistently. That includes the Trump golf courses overseas which are NOT doing well.  PBS Newshour did an excellent profile on the Trump businesses and outsourcing jobs HERE.

And the PBS News piece goes on to note:
It is obvious that consumers, already hard pressed by weak income growth, would see their buying power further constrained. But many would also discover their jobs are threatened. Our economy is currently deeply linked to the rest of the world, and millions of U.S. workers are employed in companies that sell imported goods and use imported components in the products they manufacture in the USA. Trump’s tariffs would wreak havoc with global supply chains and force many companies to reduce employment. In addition, foreigners would undoubtedly retaliate against our exports as they would be entitled to do under our trade agreements. Think about what a trade war would do to investment and employment.

As to Trump's claims about US companies, he does not prepare well for debates and other policy presentation;  he is not factual, he does NOT do his homework.  He was WRONG WRONG WRONG about Ford motor company sending jobs to Mexico costing US jobs.  They are shifting their LESS POPULAR models to Mexico, where they will no doubt be sold across Mexico, Central and South America as well as some brought back into the US.  Trump utterly fails to understand the US global market for US cars, unlike the analysis done by the LA Times on such sales.  But there is entirely new manufacturing in the same facility which is being retooled here.  NO jobs are being lost, and some new jobs are being created by the retooling process.

From CNN Money:
The automaker quickly shot down Donald Trump's latest hyperbolic claim, made on Fox News Thursday, that Ford plans to "fire all its employees in the United States" as part of a plan to build a plant in Mexico.
Ford said there will be zero job losses in the U.S. as a result of the new plant in Mexico. The Wayne, Michigan, plant that now builds the Focus and C-Max that will move to Mexico will instead start building other models -- probably the new Ford Bronco SUV and Ranger small pickup.
"Ford has been in the United States for more than 100 years. Our home is here. We will be here forever," said spokeswoman Christine Baker.
The company has 85,000 U.S. employees, up 28,000, or nearly 50%, in just the last five years. It has 8,800 employees at Mexican plants, and will add 2,800 jobs there when the new $1.6 billion plant opens there in 2018.
Ford committed to build new vehicles at the Michigan Assembly Plant to take the place of the Focus and C-Max when it reached a new contract late last year with the United Auto Workers union, which represents 3,900 hourly workers at the plant.
And while Ford is shifting production of all small cars to Mexico, it will continue to make many car models at U.S. plants, including the iconic Mustang.
The small cars Ford is shifting to Mexico are less popular and less profitable models. Trump has been using Ford for months as a prime example of what's wrong with U.S. trade policy, but Ford has been strongly rebutting the GOP nominee.
The issue surfaced again on Wednesday when a Ford executive, speaking at a conference for investors, reiterated the company's plans to move its small car production to Mexico. During a Fox News interview, Trump vowed to impose a 35% tax on cars built in Mexico if they're shipped back to the U.S.
"They think they're going to get away with this and they fire all their employees in the United States and...move to Mexico," said Trump. "When that car comes back across the border into our country that now comes in free, we're gonna charge them a 35% tax. And you know what's gonna happen, they're never going to leave."
This is called protectionism; it doesn't work. Trump's policy plan for reducing the outsourcing of jobs has been widely debunked as crap by economists who have looked at how this has worked when it was tried before.  It hurts, not helps, the economy and does not result in significant job saving.

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