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Posted by Dan Shockley on Monday, July 21, 2008 at 21:23:29 :
In Reply to: Those hubs look great posted by copey on Monday, July 21, 2008 at 17:14:08 :
Copey,
I can completely understand your point of view. And, I believe that every individual needs to make their own choice on this issue. Whenever possible, I support local businesses and craftsmen that I know, personally. I give small businesses as much of my money as possible. When it comes to large manufacturing companies, I support the companies that provide the best products (and I pay a premium for quality) at the best prices.
My opinion on this issue stems from the fact that the most successful US manufacturing companies have significant sales inside and outside of the US. As a nation, if we become too nationalistic and anti-free trade, then we will limit the potential of our most successful companies and cost Americans jobs.
Here is an example. Recently, Congress shot down the Columbian free-trade agreement due to the lobby of many labor unions and other anti-free trade organizations. For Caterpillar, this was a major upset. The mining industry in Columbia is huge. And, Columbia already has bilateral trade agreements with Japan and other countries. If the agreement between the US and Columbia had passed, we would have been able to compete effectively in the sales of mining equipment in Columbia - on machines made in Peoria, Decatur and Aurora, Illinois. This would have meant thousands of jobs in the company - good paying, solid, US-based manufacturing jobs. Because it was rejected, Caterpillar faces a 25% tax on all machines imported into Columbia and therefore a 25% price disadvantage against our Japanese competitors.
As major, successful US companies like, Dell, Boeing, Caterpillar, John Deere, Honeywell, Intel and others try to grow their companies they need to be able to sell outside of the US (the US is still the World's largest economy, but others are closing fast). Global sales gives them the ability to whether regional recessions, like the US is experiencing, now.
When the low cost advantage in places like China and India disappears in the next 10-15 years, manufacturing jobs will flow to the regions where there is demand for products. Stregthing US manufacturing companies today through the encouragement of free trade will best position the strongest companies to be at the forefront when that happens.
Very interesting discussion.
Best Regards,
Dan
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