Part 2 of Republicans and Democrats Are On Board For Shipping Jobs Overseas

This essay is in continuation of the last essay that was written on the effects of NAFTA and globalization. 

United States exports may have grown by 16.6 percent during Obama’s tenure, but imports have swelled by 19.7 percent, leaving the United States’ trade deficit in 2010 to be mounted by 33 percent from $375 billion to $498 billion, a big deficit boost America has never before  seen in a decade’s time. From December 2000 to December 2010, America incurred a total trade deficit of $6.1 trillion which surpassed our entire economic growth. Resultantly, America had to borrow $1.553 billion every day to indemnify for this decade of trade deficits. When it comes to “advanced technology products”, at the start of George W. Bush’s second year in office, America ran a deficit with the world surging from $16 billion in 2002 to $82 billion in 2010. For the past decade, in 22 states the loss of manufacturing jobs increased by one-third: Massachusetts, New York, and Ohio had a 38 percent decline, North Carolina a 42 percent decline, Michigan a 48 percent decline, Rhode Island a 44 percent decline, and New Jersey a 39 percent decline. In 2010, America had totaled a $110 billion trade deficit with Japan, Germany, Mexico, and South Korea in automobiles and parts.  With an economy one-fifteenth lesser the size of ours, South Korea exports 12 times the dollar volume of automobiles and parts we sell to them. Foreigners’ share of the United States market exceeds America’s share of the world market by $500 billion. 

The United States has a trade imbalance that is more than 7 times bigger than any other country on the planet. 

According to Americaneconomicalert.org our trade deficits for each month in 2011 ranged anywhere from $43 billion to $51 billion giving us a total trade deficit of almost $560 billion for the entire year. And the total trade deficit for this year so far, from January to August, is at a total of $374,347,000. By and large, since 1975, America has run a trade deficit of $8 trillion with the rest of the globe. Think about how much of the national debt would be nonexistent conjointly with how well our federal, state, and local taxes and our American workers’ wages would have been paid and how many businesses of all sorts would have been able to flourish in being supported with $8 trillion. 

America had a $1.3 billion trade surplus with Mexico anterior to the enactment of NAFTA in 1993. In 2011, we had a trade deficit with Mexico of $64.9 billion. Our current trade deficit with Mexico is at $43.3 billion.  According to the Economic Policy Institute, America had a “job-supporting trade surplus with Mexico” before NAFTA, and by 2010 America had a jobs trade deficit with Mexico amounting to a total of 682,900 jobs being displaced in America.  

America in2011 ran a trade deficit of $295 billion with China, up from $6 million in 1985, and is the biggest trade deficit a country has ever had with another country in the history of the world. Due to China’s currency manipulation, America has lost 2.8 million jobs since 2001 to China, 1.9 million of those jobs being in manufacturing. Many economists estimate that China’s currency manipulation yields to them an unfair subsidy on their exports of up to 40 percent while having the biggest protectionist policies of all the major countries in the world since World War 2. With China’s high tariffs, the Chinese can sell a Jeep Grand Cherokee in China for $85,000 more than a Jeep Grand Cherokee that is being sold in America for $27,490. 

Since China joined the World Trade Organization in 2001, an average of 50,000 manufacturing jobs have been lost per month. Also, China and America were once equalized in their production of 100 million tons of crude steel, but after China joined the World Trade Organization, America saw a major downturn in output while China saw a major upturn. Last year, China dismayingly surpassed the United States in steel production by 880 million tons to 81 million tons. China’s industry preponderates over every other force in the global steel market and the market inputs manufacturing iron ore and metallurgical coal.

General Motors has been diminishing its operations of manufacture in this country while amply investing and broadening its business base in China.  Dan Akerson, the CEO of General Motors, while addressing journalists in Shanghai, China said 70% of all General Motors vehicles are being made outside of the United States. General Motors has “11 joint ventures in China with SAIC and FAW. We’re involved in vehicle manufacturing, sales, distribution, engineering design, downstream businesses such as telematics, financing and used cars. We operate 11 assembly plants in China, four power train plants in 8 cities across the country. We have more than 2,700 dealerships and sales outlets nationwide. We regard our 11 joint ventures as 11 keys to success. Not just in China, but globally. Our commitment to working in China, with China, and for China remains strong and focused on the future. We’re now building out the advanced technology center which will bring our research and development that is centered largely in the United States. We’re gonna diversify that more into China because we think this market is so critically important to the success of our company.” 

SAIC is the Communist government-run automotive corporation which monopolizes most industrial activity including the automobile industry. FAW is the second government-owned manufacturing company. Corporatists of General Motors have been bowing down to the authoritarian Communist masters for years. Since the 1990s Communist China has knavishly maneuvered American corporations. China wrests United States technology and industrial capabilities under the guise and promise of profiteering for America with China’s mammoth population of workers. According to a Commerce Report: “GM beat our other prospective foreign partners with a more than $1 billion bid to produce a variation of Buick Sedans with the Shanghai Automotive Industry Corp (SAIC). One of the major factors, if not the main impetus for the subsequent contract award, was GM’s willingness to transfer a good deal of state-of-the-art technology. The fact that technology transfer was, indeed, the price extracted from GM for the China joint venture contract is confirmed by internal GM documents.” 

With General Motors’ assistance, Communist state-sponsored corporations are investing in America and buying energy resources and principal industrial plants. The Nexteer plant, formerly owned by General Motors in Saginaw, Michigan, was first bought by an obscure company known as Pacific Motors and the industrial authority of Beijing, who then 6 months later transmitted ownership to AVIC, a corporation run by the Communist Chinese government. 

All of this has been made possible with the Obama administration’s taxpayer bailout and claimed ownership of General Motors.

Laughably enough, though Romney ascribed this entire event to being a scam of “crony capitalism”, he ought to be very prudent about what waters he treads on considering that two of his biggest campaign contributors, Wall Street plutocrats John Paulson and Paul Singer, profited $1 billion each, a 3000% gain, in playing with the game of the General Motors bailout and spinoffs and returns on the stock market.