A Return to U.S. Global Trade Competence
Since FDR pulled the U.S. out of The Great Depression, the relationship between an economy that exports vigorously, and economic growth is evident.?
The American response to the European Union’s initiatives to dominate global trade, has vindicated Einstein’s obsrvation:
The U.S. initiated the World Trade Organization (WTO):
and invited China to join. What China did anticipate, and the U.S. did not, is that trade-in-value-added services and products or TIVA would become central to global production and enterprise.?
The production of Boeing aircraft:
and of Apple cell phones and computers:
amply demonstrates the concept of TIVA wherein parts and components are sourced from various countries but the country where the last substantive transformation takes place, in accordance with WTO rules, is the Country of Origin of these goods. This determination has massive economic consequences, deprives education and infrastructure of trade-related funding and results in the mediocre, property tax-funded educational systems and education by zip code:
now prevalent throughout America. The consequences of this silly move on the part of U.S. negotiators, lawyers and trade representatives have come home to roost. In addition, the insistence of the U.S. consumer in sourcing goods regardless of the impact on the U.S. economy and U.S. jobs, is now evident in supply chain chaos and in the rampant inflation we are all experiencing. Nowhere is this short-sightedness more prevalent than in the prices of gasoline and of energy in the U.S. Despite the vaunted energy independence achieved by the U.S. since the oil shocks of the 1970s, consumers and truck fleet owners are now getting royally screwed.?
Logistical Dependency
“They see the stars, but do not see the Light”
The consumer addiction to cheap, imported goods resulted in a logistical dependency on China, India and other foreign countries as sources of supply. The supply chain first consisted of relatively cheap consumer goods, but now involves capital goods as well. A prime example of the combination of foreign sourced components and TIVA is Stellantis.?
The Stars
“Make America Great Again” or MAGA continues to be associated with mobility and employment. It is a Great American Delusion. The metaphors for this delusion are the Jeep Cherokee:
and the Dodge Ram:
two very macho, muscular supposedly “American” marques.?
Disabusing the Delusions
“Macho, Macho Man” - The Village People?
“History is the only education. All the rest is just training” ~ Brent Steeples
The Jeep Cherokee and Dodge Ram?
Wikipedia: Jeep?is an American automobile marque, now owned by multi-national corporation?Stellantis .[3][4] Jeep has been part of?Chrysler ?since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner?American Motors Corporation ?(AMC).
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Stellantis is headquartered in the Netherlands.
"The spartan, cramped, and unstintingly functional jeep became the ubiquitous World War II four-wheeled personification of?Yankee ingenuity ?and cocky, can-do determination." It is the precursor of subsequent generations of?military light utility vehicles ?such as the?Humvee , and inspired the creation of civilian analogs such as the original?Series I Land Rover .[14][15] Many Jeep variants serving similar military and civilian roles have since been designed in other nations.
Dodge
Dodge?is an American?brand ?of?automobiles ?and a division of?Stellantis , based in?Auburn Hills ,?Michigan . Dodge vehicles have historically included?performance cars , and for much of its existence Dodge was?Chrysler 's mid-priced brand above?Plymouth .
Fate: acquired as a division of?Chrysler Cor poration in 1928.
Products: Cars, SUVs, vans/minivans
What is Stellantis?
Stellantis is a mega auto conglomerate created on Jan 16, 2021. It’s a new company formed by the merger of France’s Groupe PSA and Italian-American auto conglomerate Fiat Chrysler Automobiles aka FCA. The merger of the two auto groups combined around 4.8 million vehicles from FCA with 4.1 million vehicles of Groupe PSA, putting Stellantis ahead of General Motors in terms of global market share and making it the fourth-largest automaker in the world.
Stellantis North America
As for the name, well the name “Stellantis” apparently comes from a Latin word called “stello” which means “to brighten with stars.”?Stellantis’ all-star lineup comprises of some of the most renowned car marques from France, Italy and the United States. Dodge, Ram, and Chrysler being the three American marques that come under Stellantis North America.?
Stellantis combines Groupe PSA’s Peugeot, Citroen, DS Automobiles, Opel and Vauxhall with FCA’s Fiat, Chrysler, Dodge, Ram, Jeep, Abarth, Alfa Romeo, Lancia, and Maserati.
The full list of brands under Stellantis group looks something like this, arranged alphabetically:
Denouement
The one path left for the U.S. to regain global trade competence is by encouraging small enterprise to export, just as Germany and Chile have done. German enterprises export to an average of 6 countries. Because of ProChile:
and its educational program for entrepreneurs, Chilean enterprises?export to an average of 13 countries. U.S. SMEs, when they export-which is rare, sell to an average of 2 countries, namely Mexico and Canada. This result occurs despite the efforts of 22 separate U.S. government agencies dedicated to supporting U.S. exports.
At The Following Sea, we are determined to change this state of affairs and to precipitate a U.S. export eRevolution.??
Next: Part 2: Doubling Down on Incompetence?