In yet another case of truth-twisting, President-Elect Trump has sent a strong message to GM and other American Manufacturers via Twitter.
General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!
— Donald J. Trump (@realDonaldTrump) January 3, 2017
Trump seems to be suggesting that the GM Chevy Cruz at your local dealer is actually Mexican made. That is almost certainly not the case. The Detroit based company responded with this statement: “General Motors manufactures the Chevrolet Cruze sedan in Lordstown, Ohio. All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio. GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S.” That being the case, Trump is trying to intimidate companies like GM and Ford to keep jobs in the United States. Sounds good, right? Well, in terms of cost and freedom, it may not be so great.
America prides itself on its free-trade and free-market policies. The beauty of this system is that it gives consumers the best products at the most competitive prices. Trump “forcing”companies like GM, Ford, Carrier, and others to stay in the U.S will, in all likelihood, create the same product that would have come from Mexican production at a higher price-tag. Higher price means fewer sales. Fewer sales means failed companies. Failed companies leads us back to the original problem of jobs lost.
Now, of course we can remedy this with tax breaks or the Obama preferred bailout. However, hand-picking which companies receive the tax breaks and which don’t is an evil in-and-of itself. By doing so, Trump virtually decides who succeeds in America and who doesn’t. If that’s the case, what’s the point of free markets to begin with. Yet, people ignore this violation of freedom because the headlines read “Jobs Created in Michigan,” and everything seems hunky-dory.
To loosely quote Ben Shapiro of TheDailyWire.com, “just because your party member is doing it now, it doesn’t make it okay.” Trump will continue to punish companies who want to leave the U.S to be more competitive. Republicans will continue to hold their tongues while Trump infringes on free-trade in such a grand manner.