Is Chrysler Moving to the USA a Good Thing?

Is Chrysler Moving to the USA a Good Thing?
By:Izzy Bigari


Chrysler is planning to move some of their production of their cars over to the United States from Mexico. However, they are still planning on keeping most of the production in Mexico. On January 28th, President Trump sent out a tweet saying, “Our economy is better than it has been in many decades. Businesses are coming back to America like never before. Chrysler, as an example, is leaving Mexico and coming back to the USA. Unemployment is nearing record lows. We are back on the right track!”  This statement isn’t entirely true, but it is still good for the United States’ GDP.

To calculate GDP, you need to add consumer spending (C) and add that to government spending (G), investment spending (I), and  the net exports (X-IM). The formula, GDP=C+G+I+X-IM, shows everything that is taken into account for GDP. For the net exports, they subtract IM because IM represents items being imported to the country and imports don’t affect a country’s GDP since those items aren’t made in that country. Click here to get more help on how to calculate GDP.

So why does this matter? Well, Chrysler moving some of their production over to the USA will help our country’s GDP. These items would be newly produced and would be made in the USA so they would fall under the investment spending category. All the Chrysler cars made in Mexico would be removed from our country’s GDP as they fall under the imports category and would be subtracted out of the equation.  So with Chrysler having production be in both Mexico and the USA, this will both help our GDP and diminish our GDP as the cars are being produced in 2 different countries. Overall, Chrysler moving some production back to the United States is good and will help our country’s GDP.

Works Cited

ACDCLeadership. “Macro Unit 2.6- GDP Deflator Practice AP Macroeconomics.” YouTube, YouTube, 4 Feb. 2012, www.youtube.com/watch?v=gqm--7s0Ks4.

Fiat Chrysler has six plants in Mexico. “No, Mr. President, Chrysler Isn't Leaving Mexico.” CNNMoney, Cable News Network, money.cnn.com/2018/01/29/news/companies/trump-chrysler-mexico-tweet/index.html?iid=hp-grid-dom.

Trump, Donald J. “Our Economy Is Better than It Has Been in Many Decades. Businesses Are
Coming Back to America like Never before. Chrysler, as an Example, Is Leaving Mexico and Coming Back to the USA. Unemployment Is Nearing Record Lows. We Are on the Right Track!” Twitter, Twitter, 28 Jan. 2018, twitter.com/realDonaldTrump/status/957603804383465472?ref_src=twsrc^google|twcamp^serp|twgr^tweet.