Quote:
Originally Posted by StreetStrip
Perhaps GM can invest enough in Mexican factories and create enough jobs to keep their people from sneaking into America! Of course, with America's unemployment rate hovering at 10% maybe we'll be the ones sneaking into Mexico for those GM jobs!
Not only that, it's to build "high efficiency" motors to meet the new CAFE standards imposed by the Obama administration. So, Obama gives GM money borrowed on the backs of future generations, GM turns around and invests a large chunk of that borrowed money in Mexican factories to build cars dictated by his administration.
You just can't make this stuff up.
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Would that be the up-comming 35 mpg CAFE regulation? Because Bush signed that one in 2007 and I
think the even stricter 62 mpg in 2025 has been shot down as being impractical.
Quote:
Originally Posted by a_Username
Yes, but imposing tariffs, devaluing the currency, outright banning free trade, or dabbling in a little state capitalism is not the way to "stay competitive"; these policies actually lead to the opposite of what you want to happen. Not saying you specifically proposed or even implied these views, but it was just a general implication that I got from reading a few replies to this thread.
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It doesn't look like many have suggested those sorts of things, or implied them. Mainly the ones that wanted businesses to be more competitive wanted lower wages for workers and less regulation, in effect making America more like Mexico to keep US jobs from going to Mexico. I see some rather obvious problems with that logic, but you probably see it more clearly than I, right Mr Economist.
But to address what you mentioned ... you're saying that its better for global companies to have their home market be 100% free and open, meanwhile their international competitors enjoy a home field advantage (due to the various methods you mentioned)? Sounds like its great for making everyone else competitive, but not so much for the domestic companies. What I personally endorse are mirroring the trade practices of other nations, at least whats practical. If they want free trade, good for them. But if they try and protect their market so they can sell to you without you selling to them ... that doesn't sit well with me.