Posted on 09/18/2016 4:20:31 PM PDT by 2ndDivisionVet
Ford Motor Co. is the classic example of an all-American company, but now they are better representing what ails the American economy, as they are being forced overseas. As Ford begins plans to build a $1.6 billion auto assembly plant in Mexico for small car production, the company continues to experience the pressure of globalization crushing their American business dreams.
Ford was a classic Michigan company, but as Detroit News reported Michael Martinez reports, "It will employ 2,800 at the new Mexican plant by 2020."
It is no surprise Ford has to modify their building model in order to compete, most classic American companies do — GM and Fiat Chrysler have outsourced to Mexico for truck production, for example — and Ford could risk closing their entire operation if they did not cut costs. The Small Business Chronicle writer Michael Roennevig found that extremely high corporate taxes, high labor costs, and excessive regulation force companies to move overseas.
It is not Ford's fault; but it is Washington's fault.
With a corporate tax rate of over 30 percent and Obama's environmental, labor and other regulations that increase the cost of running a factory in the United States as well as stifling innovation, companies such as Ford must utilize the tools given to them in agreements such as the North American Free Trade Agreement (NAFTA) which incentivize moving factories and jobs across the border or overseas.
Even the Huffington Post's Lori Wallach wrote in Jan. 2014 that on NAFTA's 20-year anniversary it represented "a staggering $181 billion U.S. trade deficit with NAFTA partners Mexico and Canada and the related loss of 1 million net U.S. jobs."
As once iconic companies resembling the American dream, Ford, moves overseas, President Barack Obama is considering another international free trade agreement which will force even more Americans out of work, the Trans Pacific Partnership (TPP).
An agreement, mind you, that Ford opposes. Moving jobs to Mexico must make executives at the company sick to their stomachs.
While TPP supporters hail the differences between this agreement and NAFTA, the TPP misses one critical element of contention which causes immense harm to the U.S., the TPP offers no protection against currency manipulation.
This practice, heavily employed by Asian countries interested in signing the TPP is found to have been a driving force for job loss and reduced gross domestic product. A study conducted by the Economic Policy Institute in March 2016 found that "currency-manipulation-fueled trade deficits have reduced U.S. gross domestic product, eliminated millions of U.S. jobs, driven down U.S. wages, and propelled the outsourcing of U.S. jobs to currency manipulators. In 2015, the U.S. deficit with TPP countries translated into 2 million U.S. jobs lost, more than half (1.1 million) of which were in manufacturing."
Today, Ford is moving small car production to Mexico and attempting to maintain some U.S. based production, with the TPP in place even more production will eventually be forced overseas. Companies may not be able to compete by producing in America. It's that simple.
In Michigan, which holds 16 votes in the electoral college, the thousands of people losing their jobs are aware of this reality and have already proven they are voting based on it. NBC exit polls from the Michigan primary showed that when asked overall how trade with other countries effected job creation 57 percent believed it took jobs out of the U.S.
This correlates with 57 percent of Democrats and 55 percent of Republicans who believed trade with other countries takes away U.S. jobs. Those people backed Bernie Sanders and Donald Trump overwhelmingly, as both were adamant fighters against the TPP and NAFTA. In the meantime, Ted Cruz and Hillary Clinton supported NAFTA.
Now Ford is proving once again to Michiganders that trade does take away jobs, as they are now going to be unemployed, leaving them with only one other option — voting for candidates who understand that high corporate taxes, and increased manufacturing costs due to heavy regulation harm American manufacturers trying to compete in the world economy. If Michigan voters, who overwhelmingly have a negative outlook on economic conditions and consider it one of the most important issues currently facing the country, vote in the same fashion as they did in the primary, Michigan might easily be a red state on election day.
Clinton, who has flip flopped on both TPP and NAFTA, has sparked distrust with voters on her stance on the issue. Now she says she's against TPP, but can she be believed? In Michigan this could make all the difference for disgruntled former Ford employees losing their jobs to low wage Mexican workers.
Even before Ford's announcement on Sept. 14, a Free Press-WXYZ-TV poll conducted Sept. 10 through Sept. 13 found Trump was already within 3 points of Clinton in the Great Lakes State.
Ford was meant to be a business representing the American dream and American innovation, unfortunately, big government policies and bad trade deals have stolen that from the company. Now Ford's decision becomes a symbol of U.S. economic decline. The next president will decide whether that changes or continues down the economic path the people of Michigan fear.
We’ve come full circle: The Co. of the man who paid his employees more so that they could better afford the product he was selling...is moving out of the country to avoid paying wages.
Yes. If Trump counters Ford with the following:
Ford CEO says no jobs were lost. Not the point.
1000s of jobs in Mexico created which could have added to US UAW worker roles.
Ford CEO is an A-Hole.
I guarantee that in the closing days of the campaign that Trump will say that he one the Republican primary of 16 globalist stooges because the Republicsn base was sick of the betrayal of their party and that he will protect blacks and Hispanics from the Democrat globalists. The turncoat Chamber of Commerce will squeal like the pigs they are but it will flip many Democrats to Trump.
I don’t think the unions will allow them to vote for Trump.
Game, match, set.
Mark Levin says that nobody is losing their jobs over this because they are going to be building other things there. For how long I ask. For how long?
His hatred for Trump blinds hm to the realization that it cold have meant 2800 additional jobs for Americans out of work. He has lost his friggin mind!
Snip:
In an online poll conducted for Bloomberg News, 55% of whites with no more than a high school degree, said they support Trump. In my plant, there are a lot of people who are saying “I’m voting for Trump and I’m not ashamed of it.”
Democratic presidential nominee Hillary Clinton has supported NAFTA and the TPP in the past, while Donald Trump has promised to re-negotiate NAFTA and to oppose the TPP. Union members like that kind of talk, and that’s why so many of them are breaking with their union bosses to support Donald Trump.
“Could Ford moving to Mexico move Michigan into Trump’s column?”
Maybe the THREAT of Ford moving to Mexico will be beneficial to Trump. If elected, he could start the wheels turning to keep the jobs here. The company can’t move and start an operation there in a few months’ time. This could be a plus for the campaign.
A lot of the blame should lie on the new CEO, Mark Fields who, also, says Trump is wrong about jobs. I’ve noticed Ford hasn’t been doing so well since he took the reigns.
He says he is voting for Trump, yet he will not stop bashing the guy. Why not bash Hildabeast double time Mark?
A union official is going to follow every member into the voting booth?
“Ford CEO is an A-Hole.”
Perhaps but don’t fail to realize that the CEO of a company, any company, is to maintain viability, make a profit and bring a acceptable return to the stockholders period.
It’s the governments job to NOT get in the way of their ability to do that on American soil. Unfortunately, the opposite has been the case.
A buddy of mine is Union and follows the Facebook threads for them.
They are all going Trunp realizing he’s the only one that’ll protect American jobs.
Some white collar folks (computer programmers) realizing it, too.
“..I don’t think the unions will allow them to vote for Trump...”
Union extortion has had its day. Companies like Ford are finally being taxed, waged and regulated OUT OF AMERICA. The stage is set. Time will tell.
Someone needs to start a new American car company that is non-UAW.
“Maybe the THREAT of Ford moving to Mexico will be beneficial to Trump. If elected, he could start the wheels turning to keep the jobs here. The company can’t move and start an operation there in a few months’ time. This could be a plus for the campaign.”
I’m thinking the same. Perhaps Ford wanted to engage a bit in this campaign and help deliver Michigan to Trump, in the hope that Trump will make manufacturing profitable here again.
If that wasn’t the intent, they sure timed it well, as they could have simply waited another 8 weeks until after the election.
***************
Yep nothing new about that. In the history of mankind it's always been about finding
ways for more efficient production. And that generally means some are losing jobs.
Automation better equipment, new techniques, etc have always changed the way people
have lived over the millenniums. Adaption is the key to prosperity. JMO.
[Mark Levin]
FRAUD.
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