Bob Dylan’s real Super Bowl ad for Chrysler began, “Is there anything more American than America?” Conan O’Brien extended the commercial, and succeeded in not only being funny, but making a statement about our dependence upon foreign trade. If there’s anything ‘more American than America’ it might be a cell phone from Japan or a t-shirt from India.
The original ad, which seeks to impress the idea that Chrysler is built in America, does so by stating that Germany brews our beer and Switzerland makes our watches; therefore American Chrysler will make our cars. However, even good ol’ Chrysler isn’t ‘all’ American. To be fair, cars are assembled in Detroit, but the auto giant is a wholly owned subsidiary of the Italian multinational automaker Fiat. When you buy a Jeep, Ram or Dodge you’re also buying from Fiat.
This information made me wonder what we do buy from other countries and what we make and export. According to figures in 2012, the ‘ad’ from Conan was not exaggerated. We may buy Detroit built Chrysler vehicles, but Japan enjoys $52.9 billion per year from American trade in cars alone, and over $150 billion in total, with machines and electronics high on the list.
While our dependence upon Saudi Arabian oil (at $57.3 billion) gets lots of attention; our absolute addiction to cheap Chinese goods is shocking! We pay over $444.4 billion annually for goods from China. You name it, and we buy it, but as you know electronic equipment rates highest at $113.3 billion dollars in trade, alone.
Of course trade is good, but isn’t a bit of self-reliance also beneficial, especially in the middle of a job crisis? A quick glance reveals that my t-shirt is from China, and my jeans were made in India. I’ll wager you’ll see far away names if you check out what you’re wearing. At one time it was possible to look for the “Made in USA” label, and be a discriminating consumer. These days you’d be a clothless shopper!
What DO we sell? I was dismayed to learn that we lead the top ten countries in the world who export arms according to CNN.com The U.S. topped $656 billion (in 2012) with China following at $126 billion and Japan at $66 billion. Worldwide arms exports are surging. They’re up nearly 30% since 2008, according to a new report from defense anualyst IHS Jane’s. Weapons exports totaled $73 billion in 2012, up from $57 billion four years earlier. Total worldwide defense spending in 2012 was $1.6 trillion. The United States far outpaced the pack, and is projected to hold that lead in 2021.
Unsurprisingly, the BRIC countries — Brazil, Russia, India and China — are ramping up defense spending in a big way, posting double-digit gains over the next 10 years. By 2021, Brazil is expected to knock Australia out of the top 10. The United States, meanwhile, is expected to cut spending as it unwinds from Iraq and Afghanistan.
The United States is by far the world’s biggest arms exporter. China is tiny, accounting for just 3% of global exports.
Couldn’t we learn to make peace not war? Don’t we have the ability to produce electronics, wearables and other consumer goods at a reasonable price? You certainly can’t say that we don’t encourage ‘the makers’ and offer them tax benefits and other cash incentives. Certainly there are options than those often bandied about by Republican millionaires, who would continue to force workers to settle for a life of working poverty while CEOs reap the profits. Any ideas, observations of comments are heartily welcome as always.