American Cars To Be Made In America
By Tommy Manbeck
Image of Corvette plant in Bowling Green, Kentucky
Moving into the next era of the United States with the reforms by President Trump, there seems to be a migration of production moving from Mexico to the U.S. This investment in America is bringing hope to cities who failed when these very automotive manufacturing jobs were exported to Mexico, and will give Detroit citizens hope to restore their economy. According to Bunkley, America's largest auto producers pledged to invest in the USA by building plants here. The companies pledging to move production to the USA include Ford who will invest 700 million, FCA who will spend 1 billion and GM who with their new plant, will invest 1 billion to create American manufacturing jobs.
With Detroit's economy so behind the rest of the United States (as seen in the graph above), it will be huge for them to have these manufacturing jobs back where they belong. A healthy unemployment rate is around 5 percent, but Detroit is nearly double that statistic. To worsen matters, Detroit's issue lies primarily in cyclical unemployment which is the most difficult for an economy to recover from without government intervention.
Large American automotive companies left Detroit in the past, due to a large per unit tax on production of these vehicles, making it far less profitable to produce here. These taxes were imposed on automotive companies for the polluting nature of manufacturing to correct the negative externalities of this pollution. According to President Trump in This Video , these taxes and permits are for things most people would have never heard of and as an environmentalist, he of course wants to protect the environment on his quest to create many stable and lasting jobs in the U.S. (Reuters) President Trump is doing a great thing by nudging fortune 500 companies back to the states, as it will ensure more Americans a have stable income, allowing them to succeed and live happier, healthier lives.
Donald Trump's import tariff may be a large step in the right direction, but this 35% tax on importing goods to the USA is only a small step in the direction of solving America's unemployment problems, which will lead to reducing welfare and increasing safety as fewer people will be fiscally challenged. Likewise, these companies investing in America are also only a small step in the direction of creating these jobs to move wealth back to the USA. Step by step, we are going to accomplish these goals of making America rich again, making America safe again, making America strong again, and making America great again.
Works Cited
Bunkley, Nick. “GM to Invest $1 Billion in U.S. Manufacturing, Move Axle Work from Mexico.” Automotive News, Automotive News, 17 Jan. 2017, www.autonews.com/ article/20170116/OEM01/170119817/gm-to-invest-$1-billion-in-u.s.-manufacturing-move-axle-work-from.
Reuters. “What Donald Trump Told America’s Biggest Automakers.” Fortune.com, Fortune, 24 Jan. 2017, fortune.com/2017/01/24/donald-trump-auto-executives-increase-production/.
Your post about car production is very informational but it seemed to be talking about what Mr. Trump is going to do in the future with the production I would have liked to hear more about the why of it, they are supposed to be on your opinion but it got a little off topic with Mr. Trump I would've like to heard more facts.
ReplyDeleteI think it's great how you highlighted the growth to come of the American automobile industry. I do think it's awesome that it will be providing more American jobs and lowering the unemployment rate in Detroit. If I'm understanding this right though, I don't believe in taxing so high for trade. We still want goods from across the world, its what makes America so diverse.
ReplyDeleteThe true effects of these decisions have yet to be seen, but looking at the initial claim it looks promising. The aggregate output of products produced by these companies will increase since these items will be produced in the United States. This in turn will positively influence the overall GDP of the United States which will help contribute to future economic growth. The unemployment rate would go down as well as a result of new job creation. The growth of the economy is always a good thing, and this looks to be very promising.
ReplyDeleteI found your post to be interesting and have some great points. I think that it is great that more automobile factories because it will create more jobs. Hopefully the factories will hire Americans so that the unemployment rate in the United States will also decrease especially in Detroit. It is also great that the US manufactures most of their own cars as our export rate is already greater than our import rate.
ReplyDeleteI don't understand why you implied that Detroit would do well now that Trump wants to encourage protectionism. There is no guarantee that new investment from the big three will be invested in the Detroit Metropolitan area. As shown above GM has a corvette plant in Bowling Green. In addition, the loss of automobile jobs is not as much to do with them moving away but more to do with automation. http://money.cnn.com/2017/01/30/news/economy/jobs-china-mexico-automation/
ReplyDeleteIf you were to read an article about GM moving production of its full size pickup line to the USA, you would realize the 1 billion dollar investment in america will save around one thousand jobs, as well as create around 500 new jobs. As for the other brands I am less knowledgeable, but have some understanding. For your source you linked however, I can conduct some of my own research but will not read anything published by CNN as I cannot trust the source as there have been various pieces of fake news reported through CNN, and as a stereotypical liberal news source, they will talk down anything President trump does, if they agree or not as it is part of their agenda. If you would like to learn more about the deals our great president has made to save american jobs, I would be happy to provide you with the information you need to be an informed citizen and take advantage of a leader who will be president for all, and stop dividing America. I hope you reach out to me with an interest of learning what is really going on with the Trump presidency, Thank you for taking time to respond to my post and God bless America.
DeleteI liked the writing, even if these jobs aren't moved to Detroit it is still going to improve the U.S. as a whole. Considering Detroit is know for having automobile plants I think its a good assumption they will create more jobs in that area.
ReplyDeleteI feel it is excellent that you are pointing out the extreme disappointment that is growth of Detroit within the past 20 years. It is saddening to see that what was such a powerful city and major hub of manufacturing has now become an impoverished wasteland, but inspiring to see that president Trump has a plan to combat this. Hopefully in the next four years there is an re-ignition of American manufacturing and the American middle class under president Trump. There should not be a place in this country that is as left behind and ignored as Detroit has been.
ReplyDeleteI think you make several great arguments, and I agree with some of them, but my main point of disagreement is that this tax on imports, and subsequently businesses moving production back to the United States, would help Detroit's economy. If Detroit's high emission tax caused automotive companies to leave the city, what would make them want to come back. Surely there are other cities, even within the United States, that would be more profitable to produce in. While these changes might not help Detroit specifically, I do think that moving some production to the United States helps our domestic economy by producing jobs, so long as pollution doesn't become as big of a problem as it was before many American companies moved production outside of the United States.
ReplyDeleteJust to reiterate my claim, it would be impossible to persuade these companies to move back to America without the import tax, because as we have learned in econ, companies will always want to minimize cost. However, this tax may not be the most efficient solution possible, but it is the best I have seen so far to save/create American manufacturing jobs. If you have a better idea for creation of these jobs, I encourage you to check out greatagain.gov, where you can input your ideas on how to make America great again. However it has been blocked on the schools WIFI, regardless of its .gov status. Thank you for taking time to read and respond to my post, I hope you found it interesting as well as informative. God bless America.
DeleteYou bring up a lot of great point in your writing, but I do have to disagree on a couple of points. My main argument is that I don't necessarily think this will greatly boost Detroit's economy. It is to my understanding that this tax is still in place in Detroit. If this tax forced many companies to move out of the area, I do not see any reason why these companies would move back and pay these taxes.
ReplyDeleteGM has pledged to move to Detroit, but you are correct that the work is still not complete to save our city which is currently in the worst shape, However, FCA is building plants in Ohio as well which will not help Detroit, but overall increase GDP.
DeleteI agree that it's good to move production back to America when it was previously in Mexico. Although I don't see why it's guaranteed to be in Detroit. The companies will probably choose the cheapest states to start their production projects in and I'm not entirely sure Michigan is one of those states.
ReplyDeleteGM will be opening plants in Detroit, but you are correct as FCA will also be investing in parts of Ohio
DeleteI agree with the points you make as I feel Detroit has been left out to dry by America. It was once a place of manufacturing and around every corner was some sort of factory. I also agree by your points regarding the reasons there is little to no employment in Detroit. Indeed there is a heavy factor of cynical unemployment due to the fact that Detroit's economy has been hurting for quite some time, especially since they went bankrupt. Hopefully President Trump will be able to turn things around which will increase the GDP of our countries economy as well as allow for economic growth and a decreased unemployment rate as Detroit itself raises the national unemployment rate.
ReplyDeleteI agree that exporting jobs back to America is important and will help boost the US economy but there is no reason to produce in Detroit unless they lowered their overly high emission tax. Instead, production should be placed in cities that allow for cheaper production which will allow the company producing to be more successful and profitable.
ReplyDeleteI completely agree with you Ryan. If we import jobs back to America putting them in areas where they are bound to make less profit is a poor choice. Locating jobs where they have the best chance to succeed is important and should be the priority. There are jobs that suit every location in the U.S and forcing them into places with the less likeliness to be successful is a poor choice.
ReplyDeleteRelocating automobile plants back into the US not only is good for the economy as a whole, but if they are located in Detroit like you mentioned it can improve the unemployment rate in that city. The only downfall to this would be the high tax on emission which could turn companies away from producing in Detroit versus another city with a lower cost and better chance at making more profit.
ReplyDeleteI think it is a smart move to bring manufacturing jobs back to the United States, for the time being. Bringing the auto industry back to Detroit was good move in general, because Detroit already has the infrastructure to support such an industry, whereas the only downfall is the emissions tax that forced the industry out. However, the industry will not be a job provider for long as automation moves ever closer to becoming synonymous with manufacturing, so I think it would be a good idea for those relying on their manufacturing job to learn another trade, and fast.
ReplyDeleteI think that moving that industry, weather to Detroit or not, is a good decision. Getting more jobs in the country will decrease the unemployment rate but I'm not so sure that moving back the factories and such to Detroit is actually going to increase the number of jobs, since most of the major automation companies now use more reliable and sophisticated autonomous workers, like robots, to assemble and manufacture. I'm not saying that jobs will not be added, but the minimal amount that will be, will do significantly less impact if prospective employees don't add other skills to their tool sets.
ReplyDeleteBrining jobs back to America is something that is very vital to bettering our economy. It would be nice if all companies not just automobile, but other large manufactures would bring jobs back to America as well. You wonder with bring jobs back to America is it will increase the cost of products and you also wonder what kind of shape it leaves the countries in where you pulled the jobs from. Overall I think bringing jobs back is something that will be very good for our country.
ReplyDeleteI agree with the points you make. Bringing automobile manufacturing jobs back to the US will generate many new jobs and opportunities. I think it will reduce unemployment in Detroit as it is one of the largest unemployed cities. Although there may be better, less-expensive places to do this, this will increase GDP in the US.
ReplyDeleteI think you make some very interesting points. It would be great for more manufacturing jobs. Hopefully other industries will follow and have more jobs in the US, however this does bring back a point to, if the prices will go up if these industries are moving here. Also for the automotive industry, with more robots taking over, those people may not have those jobs as much and become structurally unemployed.
ReplyDeleteI agree with you that there are some cities that have a lower economy than the rest of the US, and President Trump's actions within his first few weeks of his presidency look to strengthen these poor economies. Not all of the economies will improve, as some steel production towns won't be improved by this. For example, Gary, Indiana. Gary is a city just south of city that fell into ruins due to the steel production decline in the post-World War 2 era. This city will take some time before the industry can pick back up again, improving the economy.
ReplyDeleteI agree with most of the points you made and you have some interesting points. With Fortune 500 companies leaving to China and Mexico where labor is much cheaper is continuing to be a problem. I think it's a little too early to say that Trump has done those things, however it would be great if he is able to accomplish his tasks efficiently and get more jobs back in the US. It'd be interesting to see how our economy does if we are able to produce more jobs.
ReplyDeleteI didn't really think too much on the whole situation with Detroit. I think you did a really nice job bringing up this point to support how it will help the US economy as well as the whole city of Detroit as well. I do however has one question. Since the unemployment rate is double the countries average, and for the most part automotive factories are more based on robots doing the work. Will these factories create enough jobs for all of the people who are unemployed?
ReplyDeleteOn a economical stand point President Trump is taking the right steps needed to get America back on the right track again. And considering the fact that the US is so far into dept it may seem unlikely that this will work due to the tax increase. But as time goes on the dept that America is in will shrink and the tax wont seem as unreasonable as it seems right now. I believe this is also a great way to decrease the unemployment rates as well. With all of the factories slowly shifting back into America it'll allow many Americans to dig themselves out of holes, as well as giving Detroit a second chance to be a great state again and fix their economy.
ReplyDeleteYou had some good points throughout the post. It would be great for the U.S to bring back so many jobs in the automobile industry. I think the tariff should work as a good way to help promote jobs in the U.S. It would be great if Detroit's unemployment rate goes down from the surge in automobile production in the city. It could be very beneficial for Detroit.
ReplyDeleteI agree with your standpoint on this issue of automobile manufacturing. Cities like Detroit were once great cities full of employment and success, but now, they are ghost towns. As more and more companies leave the US, the unemployment rate will increase and I agree with government intervention to help prevent this. We need new, stronger economic policies that help and encourage American production. This will, overall, make America more competitive in the market place. It also pains me to see American classics like Jeep and Dodge leave the US to be built in other countries.
ReplyDeleteI agree with your standpoint on bringing the automobile manufacturing back to the US. Detroit hasnt been very good since all the manufactures left. Bringing back the jobs to Detroit and the united states will bring back American jobs and boost our economy.
ReplyDeleteI agree with your assertion that cars being manufactured in the U.S. is great for unemployed Americans. With so many jobs opening up, struggling larger cities like Detroit will finally be able to give jobs to those who don't have them -- which can do nothing but help Americans. However badly our unemployment issues needed fixing, I do have to admit that I didn’t realize unemployment was so great in places like Detroit.
ReplyDeleteI like the post as it takes a turn on the topic from both an economic and political standpoint. I guess my only questions would be: "Do we have the resources to start manufacturing homegrown goods such as cars?" and "Can we expect the same quality in these goods while making them in America?". I would have to agree that this was a smart move in terms of creating job opportunities in fallen cities such as Detroit and this will be a new horizon for the people in such cities. Overall a great post with on a very important and relevant topic.
ReplyDeleteI like some of the points you made, but was wondering something about Detroit. The tax is still in effect in Detroit, so why would the automotive companies come back if they recently left because of the tax, is it possibly to help create those more jobs that the citizens need? Otherwise, I agree that the United States can grow from this by creating many jobs and advancing our economy as a whole. This will definitely boost the United States' GDP.
ReplyDeleteBringing jobs back to the American worker is a big part of growing the economy and is a great way to lower the unemployment rate especially in Detroit. In this, I agree with your view on the topic and the steps that Trump is taking to make sure these jobs come back to the American people like they were before they went overseas and crippled main car manufacturing cities like Detroit. It's important to keep the jobs in the U.S. and not overseas because then there is more unemployment that crowds our economy if they stay in other countries. Also by staying overseas the name brand "American Made" is lost, but if the companies come back it sets our country up for a more better, strong, competitive economy.
ReplyDeleteI fully support companies producing wherever it is most profitable, and if that's in the US, then all the better. However, I would like our government to provide incentives for production in the United States through changes in policy, rather than this intimidating, authoritarian approach that Trump currently seems to be taking where he visits companies in person and has a "chat".
ReplyDeleteI agree with the belief that in order for the U.S to become the economic powerhouse it used to jobs must be created in order to realize this goal. We seen this with Trump pushing for companies to build their products in the U.S. However this may prove to have adverse effects on the economy in future. Without companies being able to spend less on producing their products by basing it offshore, they will be forced to spend extra money on furthering their business through Trump idealistic economy.
ReplyDeleteI think you make some very interesting points. I think the more jobs the better. This will maybe bring more industries to the US, however this brings the problem of prices sky rocketing. There also is the problem of robots taking jobs away making people structurally unemployed.
ReplyDeleteI think you have a great point in bringing jobs into America and boosting Detroit's economy and bringing back the car industry into America, restoring the well fueled economy back to Detroit like in World War 2, funding jobs for the massive unemployment in the city of Detroit.
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ReplyDeleteThis was very interesting to me and I completely agree with you. If more companies move to the US, it will create a lot more job opportunities for US citizens and, like what Grant said, the more jobs, the better. This could also mess with the prices of their products. It's a lot cheaper to base your production in other countries, so when those companies move back to America, it will cause many problems with the consumers and actually buying the products.
ReplyDeleteIn terms of bringing more work into the United States versus exporting those auto related jobs to Mexico, you make very valid points. The issue with this is that the costs to do this will be exponential compared to what they are currently, as wage differences, the cost to make them here, and so on, all play a role in the increase of price. On the other hand, it is also a good move due to the lessening of unemployment, bringing the industrial side of the US back to where it used to be, and also making the United States more self-reliant. President Trumps choice to do this will very likely bring economic growth to the United States, and return the manufacturing side back into what it used to be, or to a closer extent. Overall, this shift of manufacturing back to the United States shows potential, and growth for not only Detroit's economy, but the US as well.
ReplyDeleteBringing the car industry will help out America a lot we will be able to export cars and make good money off of that. It will create more jobs for America and creating more jobs will get more people jobs and help out the economy. It might cost a lot of money to do this transition but like you said you have to take that step in the right direction you want to go to build up what you are expecting to happen. There are always negatives about most things but once you get the plants to make the cars here we are able to make more money than what it cost to build it.
ReplyDeleteI think your current stand and bringing up the topic is very great and important. I like how you explained what are the problems and showed correct and current stats on investments and graphs. A big problem I see is the relationship between mexico. Although at the moment things aren't as nice between us it wont help fix our cons with mexico. Hopefully by increasing jobs in Detroit and other places with high unemployment we can establish factories and plants in mexico to help give them more jobs.
ReplyDeleteI think you made a lot of valid points while supporting Trump's goal to bring back jobs and large businesses too the United States. I found the statistics you used about Detroit's unemployment rate being twice the healthy unemployment rate to be very useful. This really proved your point that something needs to be done and is being done. Besides that, I wonder how Detroit's unemployment rate will change in the next 4 years during Trump's presidency. Hopefully it continues to decrease until it is at a healthy percentage as it should be.
ReplyDeleteI think that you made a good point about bringing jobs back to America (specifically Detroit) through the production of automobiles. I do think that bringing these manufacturers back will create an ample amount of jobs in the United States and help to improve the conditions in Detroit as well. It is essential to bring back these types of companies in order to bring back jobs and such that were brought to other countries. But I do not necessarily think that taxing imported products that high is going to do any good. I am not sure that companies in America would be able to keep up with the demand of the some of the products that people would begin to buy. I also have a concern about what the other countries might do about it. If they see that the government is making a bigger profit off of the products, will they raise the price of the products as well? So my point is why have America make products that China or any other country can make and they make it more efficiently and cheaper then what we can.
ReplyDeleteI think it would be a good idea to bring more jobs back to America, but I don't think enough people will know what they are doing while making the automobiles. It would take a certain amount of training and materials we might not have.
ReplyDeleteI understand the point of bringing jobs to America in order to help the unemployment rate, but there is a lot of other factors that go into it. A lot of the people who would presumably be the ones working in the factory, haven't challenged themselves in the past and it is there fault that it lead to unemployment. I also understand that President Trump is trying to bring back the American dream, but the America dream is made in China. People wouldn't be outsource their manufacturing to China if it would be more expensive. The people who are running the company and making those decisions have worked to get where they are and are just trying to do what is best for the company, not a potential factory worker who hasn't worked for it.
ReplyDeleteYou bring up some really good points that I wouldn't have thought of. You should have to work to get what's deserved.
DeleteI think your response to this comment could have went more into depth about what you the good points were or what you liked about the comment. Such as specifically talking about how Colin brought up a good point of the American dream being made in China. The business owner is the one who has worked hard to own that company, while the factory workers are expendable.
DeleteColin I think you were right about how his comment could have went more into depth. Yes, it may be great that America is re-domesticating American cars being made in America, but there's a reason that they went to China and other countries in the first place. While I haven't read anything more about this topic than the blog, I am curious as to how it will affect price.
DeleteColin, while I agree with a lot of your statements about how the business owner is often the one who deserves to have what they worked for, I like to look at this as how it would positively affect the whole country. With statistics such as the unemployment rate in Detroit, we can only think about the good that bringing companies back to America will do. This really shows that something needs to be done. I know that speaking specifically speaking to cars, that Detroit is where GM manufactured a lot of their cars and if they do bring it back it should help Detroit, but we shouldn't just look at Detroit. While helping out one city with bad unemployment and poverty might be great, it doesn't solve the overall problem in America.
DeleteColin, I would just like to add another point to all of the amazing and valid points you have already brought up. I understand that you said a business would always like to minimize their cost, but I don't think that happen by bringing any company to America. Yes there is import tax, but all of the companies can make everything in China or wherever else for pennies on the dollar compared to America. Not only would their costs be higher, but the investments they would have to make to get their company up and running in America would put them in the red. Then there's what they do with all of the equipment that is already in a foreign country, all of these together, I don't see a benefit of bringing the companies to America.
DeleteColin, as I read through your brilliant comment, I do agree with most of what you have to say. Yes, it may be more cost efficient for the company to outsource to countries like Japan, and yes, they do deserve to be in control of where their decide to build and manufacture, but this isn't about the company necessarily. The point of bringing the plants to America is to help bring down poverty and unemployment, and bring up GDP. Not only would this benefit America's financial state, but it would keep America in control of their industries. If there would ever be conflict between America and Japan, a great percentage of automobile supply would drop in America, and drive up prices. I think that it's important to look at this topic as how it would affect the whole country and not just individuals.
DeleteMr. McGowan, after reading through your comments you have brought up a lot of good points that only someone with an extremely intelligent mind could ever come up with. Even though you have brought up countless great points, there is something I want to bring to attention. They know that they will be opening factories in Detroit, but the other locations are disclosed. By using our senses we can use sound localization to to detect the direction and distance of where the construction of the factories are. Not only this, but with the positions that we already know we can use triangulation to aid in determining the distances and relative positions of the other points across the territory. It's a lot more simple than it sounds.
DeleteMr. McGowan, I think that you are being a little to modest with Colins first few comments. I do not see any spec of intellect in him so frankly I have no idea where you could possibly agree with anything that he has said over these last few weeks
DeleteMartin Luther King Jr. once said, "I have a dream that one day this nation will rise up and live out the true meaning of its creed"(http://www.americanrhetoric.com n.p.). Though there are many different interpretations as to what he meant by saying this, I think that it had a lot to do with the topic in question here. What America was meant to do was live out the American dream, ever since 1776 when the 13 colonies declared independence from Great Britain, we were meant to be independent and prosper. I think that bringing back the factories and the jobs of making cars is what is best for America and stands with what was signed in 1776. What's more American than a bald eagle shootin' 650 horsepower corvette Z06 doing a burnie? Nothing.
DeleteWell listen here Mach Zaderski. And yeah, that's right, I spelled your name wrong just to disrespect ya! These last few weeks he has not only brought up so many good points, but he has also destroyed everyone else in the comment section with his superior level of intelligence and intellect. I'm not sure who you are and what makes you qualified to try to bring Colin down, but not only will he destroy you with brains, but also his hands are registered weapons so I'd watch my back. Two hits bud, him hitting you, and you hitting the floor.
DeleteHey you listen here Mr. Mcknowitall. I have been working with Dr. Maderski for the past 13 and a half years of my life and let me tell you, you have no right in disrespecting him. After graduating from Cornell University he spent 7 years trying to figure out why wet cement smells like it does. Finally he came to his conclusion that when it rains cement gets wet. This combination of water and cement is what makes wet cement smell like wet cement. You and everyone else may think you're extremely intelligent Mr. McGowan, but Zachary is on another level.
DeleteZachary Schmachary. I'm going to call you Colin because you don't deserve my respect of calling you Mr. McGowan regardless of our age difference. I really have no idea what you're talking about or where you're getting all this information about Zach, but who really cares about wet cement. To compare these two "intellectual figures", I have to bring up something similar that Dr. McGowan did for the last 8 years. That's right, a year longer than Zach. Colin has spent his time sitting in a ghillie suit spying on and observing different types and behaviors of ant eaters. To be more specific, the Tamandua. Let me tell you, his discovery was ground breaking. While studying these animals, he witnessed them eating ants. Without Colin's discovering it is unsure if we would have ever known that ant eaters ate ants.
DeleteI think before we going any further with this Colin, Colin, Colin, Colin, Colin, Colin, Mr. McGowan, Zach, Colin, Colin, Colin, and Colin, we need to really define as what America is and what American cars will be made in this "America". Now the title of the piece only says America, which leads me to believe that these cars are going to be made across North and South America with different parts coming from every country between the two continents. Between North and South America there are 35 countries, and the cars will be sold mostly in America. The cost of transporting all of the parts to bring the car together and then to America would cost far more than simply doing the cheap outsourcing to Japan like we are currently doing. Sounds like Trump is dumping the economy to me.
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