Why does his American Jobs Plan remind me of a used car salesman pitch?
Biden visited Dearborn Michigan Ford Plant on May 18, 2021 and gave a speech which I would love to become a reality for USA Manufacturing to return to the USA.
For example, the following statements made about the semiconductor shortage causing auto assembly plants in USA to shut down, he stated,
“Right now, China is leading in this race. Make no bones about it, it’s a fact,” he said. “The future is going to be determined by the best minds in the world, by those who break through new barriers.”
“Never again should we be in the situation we face today with semiconductor shortages: The United States – we can’t manufacture semi-conductors. We were the beginning.”
(The USA at one time produced 62 percent of global semiconductors compared to 12 percent now after USA manufacturers massive outsourcing polices occurred and Obama stated the USA manufacturing is dead in the USA, we are a now a service economy)
“The American Jobs Plan is a blue-collar blueprint to rebuild America – a blue-collar blueprint to build America. (Applause.) And we need automakers and other companies to keep investing here in America and not take the benefits of our public investments and expand electric vehicles and battery manufacturing production abroad.
“And here’s the deal, Guess what? And Representative Kildee knows: I’m not letting a single contract to a single company that does not hire Americans, have all American parts, and has a supply chain that is an American product supply chain. (Applause.)”
The Purpose of This Post
Is to relate an ancient proverb, an idiom, and my opinion of the above statements remind me of a used car salesman pitch to sell another massive spending plan, which will be similar to buying a lemon used car experience to the USA economy.
If you find honey, eat just enough– too much of it, and you will vomit. (proverb 25:16)
Surely you need guidance to wage war, and victory is won through many advisers (Proverb 24:6)
“Start by doing what’s necessary, then what’s possible; and suddenly you are doing the impossible.”– Saint Francis
What’s My Point?
Anyone with manufacturing experience knows it takes time to procure plant, machinery, raw materials tools, and people skills in order to manufacture a widget.
Every economist knows if you have limited products or raw materials, and excessive demand for a product, the price will increase.
My point is passing legislation to print massive amounts of dollars into consumers or producers’ hands in a short time period will lead to inflation, which is now occurring in the USA from the last government stimulus payments to consumers. Presently, the majority of consumer items are imported, so the stimulus benefits goods importer countries workers instead of USA workers.
Add to the fact that the majority of machines needed to produce goods are no longer manufactured in the USA, the machinery needed to build components for wind power, solar panels, will take years to procure.
Add to the fact that batteries require raw materials such as lithium, which requires new investments in mining sites to be located in USA and plants and workers trained in skills to manufacture batteries.
My point is President Biden will find out that it is easier to say that “I’m not letting a single contract to a single company that does not hire Americans, have all American parts, and has a supply chain that is an American product supply chain. (Applause.)”
In My Opinion
What is needed is a long-range goal to return manufacturing to the USA. Printing money in trillions of dollars will only create demand and inflation. For example, what I personal set to buy only 50 percent from foreign sources or the plans of Warren Buffett to balance trade made in 2003 to Congress.
Politicians have limited experience in manufacturing and making plans without doing ““Start by doing what’s necessary, then what’s possible; and suddenly you are doing the impossible.”
In my opinion, outsourcing manufacturing by USA companies began over 40 years ago and any plans will take a long time to return to the USA. Taxing USA manufactures penalty’s as is the resent plans by the present administration will not. Instead, the manufacturers will pass the added government taxes cost to the prices to be paid to imported products which will further lead to inflation.
Will massively spending Bills and taxation return manufacturing to the USA without a long-range plan with goals, timelines, and manufactures agreements made in advance to prevent what is occurring now in auto plants, shortages of chips leading to layoffs in assembly plants, and used car prices surging creating inflations, in the future.
Presently, Intel is planning massive funding to build plants in other countries to supply chips in USA and world. Should President Biden be talking to them now to build more plants in the USA. And instead to make his political promises reality instead of selling us a previously used political promise that will turn out to be a lemon causing more inflation and constantly breaking down manufacturing because of shortages experiencing now in auto plants. And in PPE equipment doting the pandemic when it was realized that 90 percent of medical supplies are imported and led to shortages and inflated prices?
Read a previous post titled: President’s Green Energy Truth? and Intel plans in the Source links below.
C Span President Bidens Speech
President’s Green Energy Truth
Intel Plans in Arizona and Israel
Breitbart – China Owned American Battery Companies