Trump's Carrier Deal, Banks,Technology and Freedom

This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/global-markets/trumps-carrier-deal-bankstechnology-and-freedom?post=114631&uid=4798

Donald Trump's Carrier Air Conditioner deal, which leaves jobs in Indiana instead of offshoring them was certainly a bold move. I am very happy for the folks who kept their jobs. It is important to think about this from an economic perspective. I don't like pendulums, but rather an even handed approach to these issues.

Looking at this issue as an economic issue we can see two issues that should be considered.

On the one hand, a competitive world has its advantages. If nations can produce things cheaper, we can buy them more cheaply.

It would do no good for America if Carrier Air Conditioning would be forced to overcharge for air conditioners, simply because it is forced to stay in the USA.

On the other hand, one has to wonder how many companies leave America based upon greed rather than upon sound economics? We see that Whirlpool appliance manufacturer proudly displays its Made in USA label on its quality products. As we see from Consumer Reports, this company competes with products made all over the world. There is also a competitive edge to making products locally. People like to buy products made here.

Concerning Whirlpool and market research, the New York Times made this startling statement back in 2012, that obviously was ignored by Barack Obama, Hillary Clinton and the Democrats:
Whirlpool does not share its market research, but other market studies show that customers increasingly take note of where a product is made. Perception Research Services International, in a September study, found that four out of five shoppers notice a “Made in the U.S.A.” label on packaging, and 76 percent of them said they would be more likely to buy a product because of the label.
So, it was shocking to me that two strange bedfellows, Larry Summers and Sarah Palin, two noted globalists, were offended at Trump's efforts to keep manufacturing jobs in the USA.

It is just good business in many cases to keep jobs in America. According to the article cited above, quality and safety of the products have become important to Americans. In many instances, other nations do not deliver quality or safety. It isn't just about wanting to be patriotic. Quality and safety count. Sound economic decisions do not simply revolve around price.

My hope is that Donald Trump does not use his new found power to bludgeon companies that can't make it without sending at least some jobs offshore. It could cause jobs to be lost to robotics, and certainly the Donald cannot stop the advance of technology, only buyers can do that.

For example, I read that McDonalds is about to try out self serve kiosks. Now, McDonalds says it just gives customers the choice of how to engage with the company. But we all know that more and more people are for high tech. The worry is that high tech will replace the cashiers regardless what McDonalds says. People must make a conscious effort to use cashiers, at grocery stores and fast food outlets. If cashiers are eliminated, stop doing business with the company that does the elimination. Make it an economic issue for the company. Make it an America first issue if you have to.

Another example is the case of cash usage. More and more nations are limiting cash and banks can close your accounts in the USA if you just withdraw cash. They want to track you. This story appears at Naked Capitalism and should be a concern to all of us. This is a worthy news story but I didn't see it carried on our mainstream news, did you? Since the banning of cash is a freedom issue as much as an economic issue, people do need to reconsider using cash whenever possible. If you don't use it you will lose it, or at least that is a possibility. Here is the quote from Naked Capitalism:

"I decided because of this banter, that I was going to open a new bank account at a local bank (not one of the criminal entities) and I was going to refuse the debit card and refuse checks. I was only going to deposit checks and withdraw cash. After about 4 months of this activity…….depositing checks and only withdrawing cash……NO. OTHER. ACTIVITY. First, the bank branch manager takes me out of the bank line and asks me why I am withdrawing cash over and over. I told him, “Because it’s mine.” And then he said, “We like to get to know our customers, that’s why I’m asking.” I said, “Do you know her?” *pointing to the gal in line before me. He didn’t answer. I knew that he was harassing me about the way in which I was using the bank. They don’t like people withdrawing cash.
Then, just yesterday I got a call from this same branch manager (this is Banner Bank in WA) and he says, “Apparently, you did not receive our letter we sent 2 weeks ago?” And I said, “No.” He said the bank has made the decision to close your account. I said, “Please give me a reason.” He refused. So, I said, “The only activity I conducted at your bank was to deposit checks and withdraw cash. It’s not the depositing of checks that is a problem. It is the withdrawing cash and refusing to be tracked by your debit and credit cards, isn’t it?” He agreed that this was the reason they were closing my account.
So, anyone here that believes cash isn’t at risk is absolutely in denial. The banks are trying to rid our system of cash. Believe me. I have just seen first hand evidence. Just yesterday."
According to the article, this bank was Banner Bank of Washington. 
So, the globalist system is out to get us in so many ways. Banking is their biggest leverage, but so is labor arbitrage that sends jobs offshore, as well as technology that undermines fundamental freedoms throughout our society. 
Since the man had his account closed because of many withdrawals, it seemed to go against the policy of the bank concerning large deposits and withdrawals by money launderers. Banks just are nosy and want to track you.  
It is clear that Summers and Palin are not where they are because they value sovereignty of the nations. Trump, whose unsavory campaign won't be forgotten, has at least exposed Sumner and Palin for what they are, unabashed globalists. And that alone may turn out to be his most important legacy. And don't forget it was Summers who wanted the elimination of the 100 dollar bill.  
Curiously, Barack Obama set the table for Trump's logic. He railed, quite rightly, against US based companies merging with companies offshore to avoid paying US taxes. He called that behavior insidious, in an article posted at the Washington Post.
Of course, Obama was for treaties calling for outsourcing and offshoring of jobs, and candidate Clinton was for offshoring and outsourcing jobs but in 2004 was against outsourcing jobs. And Donald Trump outsourced some of his products and is against the outsourcing and offshoring of jobs now. 
This tells me that for the politicians, this is a complex issue and multinationals often get their way.  It is a sobering thought to understand that between 2002 and 2012, Apple manufacturing went from being mostly American to no manufacturing in the USA at all! It only took 10 years. Apple apparently believed that Americans were simply not qualified to make the products that were designed in America. 
So, insults and picking up roots were the result of 10 years of American government neglect, and many voters certainly believe this. All I know, speaking of insults, is that my IPad can't keep a charge no matter where it is made.
Anyway, there is talk about bringing some Apple manufacturing back to the USA. Donald Trump will likely hasten that onshoring. Yes, it is time for a little onshoring. I think onshoring isn't even a word, but it needs to be a word. I think he is quite put off by the electronics industry's failure to create more jobs here. 
As long as it makes economic sense, we need to make stuff, or at least much of the stuff, in the USA, if it is to be sold in the USA, and/or get companies to locate here to make things here in exchange for any offshoring we do. The charts and article at AmericanProgress.org shows that this is the reason why:
"In comparison to Figure 1A, the related-party exports shown as a share of overall U.S. exports in Figure 1B indicate that offshoring is a two-way street. Multinational companies from other countries are locating production in the United States for sale in other countries’ markets but are doing so at a much lower rate than the U.S.-based companies locating production offshore to supply goods to the U.S. market." Emphasis mine.
We should face facts. Offshoring has put millions of people out of work, out of the job force, out of the unemployment statistics that Americans are told about in mass media. Euro nations have massive unemployment of young people. I don't know if these people at home and abroad will ever come back into the work force. The risk of growth is still there, that they won't come back and there will be a bidding war for those who are in the workforce. But that is a risk that America and all developed nations must take. 





  

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