Nov. 19, 2021

Ford, GM And American Independence.

American seems always destined to fight for our Independence.

There was that little matter with the British a couple of hundred years ago. Two World Wars, and numerous regional conflicts, whose aim, at least overtly, was to keep this country free and independent.

Today, the field of conflict has turned to trade. Yet still, there are those who would try, once again to subject this country to mere chattel. Subject to their dictates.

Look offshore of Southern California and you quickly see how dependent we are on Asian Products. Those ships contain the finished products that our nation no longer makes.

Products like semiconductors. Semiconductors are those ubiquitous little gadgets that now help operate every piece of modern equipment. Like automobiles.

And here is where I have some very good news. A ray of hope, at a time, that our world really needs some reassurance.

Both Ford and General Motors have recently announced that they will begin to produce their own semiconductors. It was after all those same semiconductors which had halted production for both automakers. Dozens of these little pieces of silicon are needed to build each and every car. Without them, their assembly lines simply ground to a halt.

Now I'm sure that both Ford and General Motors feel a little out of their comfort zone. High-tech silicon wafers, after all, are not exactly their area of expertise. And yet that's just what's needed right now.

And in a spirit, that we haven't seen in a while in America. That “Can Do” American Spirit both companies are going to forge ahead. And produce “made in America” semiconductors.

Frankly, I feel better about this. Not just because it overcomes today's major logistics problem. But because I am more comfortable with the ultimate quality of the product that will come out of the American Factories.

You see, America lost the trade wars, not because we produced inferior products. Quite the contrary, American products are inevitable of a higher quality than the rest of the world.

But they're also usually more expensive. American production systems generally utilize safe, environmentally clean, and worker-friendly facilities. Which are inevitably more expensive to run than our foreign competitors.

This is especially true of Chinese production. Which is renowned for having the most polluting factories in the world. Many times manned by what we would consider near slave labor.

So you see we lost the Trade War with China because of predatory pricing. China, with its sub-standard working conditions and environmental regulations, was able to outbid American Manufacturing.

They competed on price alone and won.

That. combined with multinational firms like Apple and Nike, who were more than willing to take China's cheap prices: drove American Production off-shore.

It's been a long and bitter story here in this country of lost jobs and empty factories.

Perhaps Ford and General Motors have shown us the way back. And America can once again gain that “Can Do Spirit.”