What kind of government structure would allow our country to outsource its future? Exactly what has happened to turn America into a world trade banana republic?
Pat Buchanan offers gory details:
America’s allies are cheating and robbing her blind on trade.
According to the WTO, Britain, France, Spain, Germany, and the EU pumped $22 billion in illegal subsidies into Airbus to swindle Boeing out of the sale of 375 commercial jets.
Subsidies to the A320 caused lost sales of 271 Boeing 737s, writes journalist Alan Boyle.
Yet even as Europeans collude and cheat to capture America’s markets in passenger jets, Boeing itself, wrote Eamonn Fingleton in 2014, has been “consciously cooperating in its own demise.”
By Boeing’s own figures, writes Fingleton, in the building of its 787 Dreamliner, the world’s most advanced commercial jet, the “Japanese account for a stunning 35 percent of the 787’s overall manufacture, and that may be an underestimate.”
Much of the rest of the plane is also made abroad … in Italy, Germany, South Korea, France, and the United Kingdom.”
The Dreamliner “flies on Mitsubishi wings. These are no ordinary wings: they constitute the first extensive use of carbon fiber in the wings of a full-size passenger plane. In the view of many experts, by outsourcing the wings Boeing has crossed a red line.”
Mitsubishi, recall, built the Zero, the premier fighter plane in the Pacific in the early years of World War II.
In a related matter, the U.S. merchandise trade deficit in July and August approached $60 billion each month, heading for a trade deficit in goods in 2016 of another $700 billion.
For an advanced economy like the United States, such deficits are milestones of national decline. We have been running them now for 40 years. But in the era of U.S. economic supremacy from 1870 to 1970, we always ran an annual trade surplus, selling far more abroad than Americans bought from abroad.
In the U.S. trade picture, even in the darkest of times, the brightest of categories has been commercial aircraft.
By increasingly relying upon foreign nations for our national needs, and by outsourcing production, we are outsourcing America’s future.
WTO backs Boeing over Airbus in latest round of government subsidies row
Latest posts by Dick Young (see all)
- The Historical Primacy of Dividends - November 14, 2018
- Here’s How You Should Approach Investing in China - November 9, 2018
- The Best Investment Strategy is Simple, Like Analog Music - November 7, 2018