Over at www.autoblog.com is a story about how GM just won approval from the Chinese government to build a new Cadillac plant there with the capacity to build 150,000 new cars. Along with this comes an announcement that GM is going to move production of its brand new flagship sedan the Cadillac XTS to this new plant in China. Now I don’t really blame GM for this move because I believe that it is governments responsibility to set the conditions for success for both individuals and corporations. Our government in all its wisdom has decided that we ourselves will remove most of our barriers to trade so that countries like China can export all their garbage here and make a fortune while in the process we lose millions of jobs to countries like China. Our government is then stupid enough to actually believe that this policy encourages predator nations like China to open up their market when in reality we just get more chinese junk, less American jobs, and bigger trade deficits.
Some will say that the Chinese do support our budget deficit by financing it with the money our government allowed them to steal from us. My response is that this practice has only encouraged our incompetent government to continually run ever larger budget deficits because the American people are too dumb to care and the extra money the government spends helps get some of these politicians re-elected so in reality it is like a double whammy to the country. To prove my point about our government being responsible the article from autoblog mentioned that the reason they were shifting production of the new XTS to China was to avoid that countries 25% tariff if GM would have shipped it from the US. This tells us that we don’t have a similar tariff on automobiles produced in China and shipped to the US. The real question is why we don’t match the Chinese tariff for tariff? Pretty soon we won’t have to worry about this because we won’t have anymore jobs to send to China nor the ability to buy their junk. All thanks to those morons in Washington.