Dan Akerson, CEO of GM, says that seven out of 10 GM automobiles are built outside the U.S. They have 11 joint ventures with Chinese government controlled auto manufacturers. They are moving R&D to China.
When the federal government bails out an industry or provides tax incentives or subsidies, or when state economic development agencies do the same, there need to be terms that benefit the U.S. in terms of production and job growth. We can’t subsidize offshoring. Producing here and selling to our wealth consumer market need to go together.
Vince Wade has the video documenting GM’s actions.
TradeReform readers might also enjoy my video from October 2011, which explains how China’s military is the biggest employer in Saginaw, MI:
http://www.youtube.com/watch?v=XVcTa3IMlcA
“60 Seconds From The Road #2″
Another example of printing money out of thin air to subsidize outsourcing. Of course the free traders will say this is free trade but where does free trade theory say gov’t has to print money out of thin air to subsidze risky ventures overseas? All free trade theory says is that it makes sense to trade unique goods like coffee for oranges and etc. without tariffs. Also free trade theory assumes sound money like currencies backed by gold and silver which means governments can’t print money out of thin air to subsidize certain sectors. The gov’t saying we are now a service economy is not free trade but central economic planning.
“Every single year, hundreds of billions of dollars leaves the United States and goes to China.”
http://endoftheamericandream.com/archives/45-signs-that-china-is-colonizing-america