Quote:
Originally Posted by Dragoneye
I like your idea, Skyman...and although I haven't been around quite as long; I've been thinking an awful lot about this...in fact, every time I see a made-in-China tag or a toyota badge, I think about this...
I couldn't give a rat's behind what companies deal with abroad...it's up to the other countries to set standards and rules in their best interests, and I don't want the US to mess with that as we have no right. But I DO think we need to take similar actions here in the US that prop up domestic manufacturers, and make it slightly harder for foriegn companies...we need to "root for the home team" (which includes Canada and Mexico).
--Our gov't can start by removing the incentives for foriegn companies to come over here and set up shop. And increase the incentives for our own companies to do so. This SHOULD, alone, level the playing field enough for our companies to become competitive on their home terf. There's no reason for the situation to be otherwise (as it is right now).
--The next step, could be to require any imported good to have been made in a US-approved assembly/manufacturing plant. 'Approved' meaning that it has a certain level of working conditions and not crazy-ass 16-hour days sweatshop. If a company can't comply...too bad!! No sales in the US. This isn't tampering with how foriegn entities run their businesses, but it does allow the US to be selective in who it deals with. This isn't necessarily in favor of unions because its about working conditions not pay, etc. Generally, working conditions in the US and Canada are better than those in anywhere in Asia...so it gives our continent the advantage, again, on our hime terf.
-- Then, if all else fails, a more extreme measure - and one that I'm not in favor of except as a last-resort - could be to slap a 20% tariff on anything imported (excepting the US, Canada, and Mexico) and be done with it. It doesn't need to be permanent, but it WILL help US-based manufacturers who build and make things in the USA, without harming Canadian and Mexican-based manufacturers.
The thing to remember is that it's not ALL about the companies. The American public seems to have a fetish with imported goods, and they don't realize it. Why buy a Toyota? I love the answers...ranging from "America makes crap" to "why not?"...these people need to have an incentive to buy American, because it's painfully obvious they won't do it on their own.:( The above measures SHOULD make it cheaper to buy US-made things as it easies the burden on the US-based companies. And the majority of people will by the cheapest product, regardless of where its made; so this should persuade them to buy American...
 Who knows if we'll ever see any of what we're talking about happen.... |
Protectionism is a dangerous tightrope in the area of foreign affairs. In times of economic distress, enacting a tariff policy usually leads to hostile reactions from tariffed countries. The US Smoot-Hawtley Tariff, for instance, made the Great Depression worse because it put up walls between Europe and the US. Neither side wanted to trade with the other because they both raised tariffs so much that domestic companies couldn't really profit in the bad market.
I agree that the US should start by encouraging domestic production. This serves multiple goals. In the area of national security, a primary goal of any realist government, this allows the government to use that production in times of national distress or extended war. In the area of taxable resources, this allows the US to tax the workers and the owning company. Incentives to domestic companies should be preferred over incentives to foreign companies, but other companies should still be welcome to invest in our country. Anything that foreign companies get should be already had by American companies. For example, if Toyota gets money for the Prius, I'll be damned if GM doesn't get it for every singly hybrid of its own.
The United States should begin carefully setting standards of products and factories based on US law. If another company fails to live by US or simply reasonable environmental or business practices, then the US does not have to import from that company. This would slowly exclude Chinese imports from US soil, invariably hurting US-Sino relations. It is unlikely that any serious hostilities would result, but I doubt that China would let the US use its airspace.
I would not recommend a 20% tariff on anything imported. That gets passed on to consumers of both imported and domestic products. US companies have little incentive to improve their own products when the competition is no longer in the same price bracket. I'm concerned that this would eliminate all competition in the market.
The US should provide incentives to buy American products. That means that the US should be using the Toyota ads in Japan, claiming that our products are as Japanese as theirs; or that the US should be using Subaru's ads that claim that US products are greener than theirs. We should be pushing our products on the foreign market by proving, side by side, that American products are clearly superior when possible. The US government may see benefits from some sort of temporary overseas advertising fund-matching program or tax rebate. The US government should encourage American business success overseas, especially in failing markets like the automotive industry, because the US government operates with heavy reliance on American cars. Why not show thanks for GM, Ford, and Chrysler by giving some money back? It might sound crazy to a lot of American, but this is a widespread practice overseas. Routinely, countries like Japan invest in their domestic industries to promote new products or to perform research. The US needs to be just as protectionist, especially when the products are clearly superior to the competition.