i am not an economist, but do you think this can go on forever without affecting our standard of living in major ways? It already has had many effects, i am worried about th effects coming over the next 5-20 years. http://www.miami.com/mld/miamiherald/busin...ay/13910441.htm
I have a certain amount of faith that GM and Ford will turn themselves around, and that we'll be fine. Granted, Ford and GM may not look like anything they do today, but they'll exist and hopefully make green energy a reality. Toyota's success and GM's and Ford's success do not have to be mutually exclusive.
Where do you think Toyota's market share gains have come from? toyota is working on a growth strategy, that growth will have to come at the expense of GM and Ford.
Now you're talking about something else entirely. The trade issue is certainly troubling, but no one, not you, not that economist you've linked to... has any solution. Continuing to bring up the subject is tantamount to you being a worry-wort with no solutions. That's actually a pretty good article you linked to... it says that raising import duties isn't the silver bullet solution... there are negative consequences. When we're talking about the car industry, yes it's affected by this trade deficit, but it's foolish to try to connect the trade deficit to the ill health of the domestic car industry... your implication is that what we need to do to solve the trade deficit is to start buying American cars... sigh. Domestics need to be more competitive if they want to retain dominance, so this is not just about trade deficits... this is about innovation, or lack thereof... and diversification, or lack therof.
So why doesn't GM or Ford work on a growth strategy? They SHOULD be... And as to market share gains, it's not just about the domestic market... it's about emerging markets as well. Toyota is still a distant third to Chevy and Ford as brands here in the US, but the emerging markets are important.
"Everything?!" Sounds like some pretty selective reading. How about referencing parts of "everything" so we can read and discern for ourselves. Plus, this http://www.miami.com/mld/miamiherald/busin...ay/13910441.htm doesn't say anything about how a GM or Ford bankruptcy would cause the next Great Depression. I guess you didn't actually read this article then, otherwise it would have to be considered as part of "everything," right? :huh:
The auto trade deficit is a huge portion of the total deficit and so the two ARE very related. So yes buying a Toyota instead of a GM or Ford does have an impact on the trade defecit. I do not think that barriers are the answer. I would start with education in the schools. Most people have no idea what is happening to their money when they buy a vehicle from a foreign company or when they fill up their cart with Chinese-junk at Wal-Mart. If they knew, many would behave differently. I have honestly had folks driving a foreign car complain to my wife about their job-loss at a local auto parts supplier. I continually have teachers get upset with our organization when we turn down requests for money and the requester is driving a foreign car sold by a dealer outside of the community. Many teachers unfortunately have no idea how economics work either. they don't connect the dots between what they buy and form whom and their economic well-being.
GM is kicking it in China where Toyota is having a tough time gaining traction. something about war atrocities.
What happens to the money YOU spend to fill up your gas guzzler ? Go on, start your new life as an educator, and enlighten me.
I'm sick of your worldview. You are so quick to label people hypocrites... you want everyone who drives a japanese car to be treated like second class citizens. "they have no right to complain because they are driving around an evil japanese car and are evil themselves" What if people go and buy a Chevy Aveo? By all accounts, designed and manufactured in Korea? Is that good or bad? What if they buy a Mazda? Is that bad because it's japanese designed and manufactured, or good because Ford owns it? Should we avoid some vehicles by Chevy and Ford because they were manufactured overseas and are sending money overseas? The responsibility of helping to alleviate the trade deficit for automobiles lies with the car manufacturers to develop a better product that people want to buy... if the car manufacturers fail to sell a vehicle, it's their fault, not the innocent guy who bought a Prius because he wanted all the features, and GM didn't offer anything that had all the features. I don't believe you when you say you understand economics. You're trying to say that buying a GM car is 100% good for the economy while buying Toyota is 100% bad... but if everyone thought the way you did and bought GM despite Toyota having a better offering, then GM would not have any reason to innovate. Western capitalism is based on COMPETITION. Competition keeps the prices down, competition keeps the customer happy. What you are proposing is the end customer sidestepping and making competition irrelevant. In the long term, your kind of economics would only be a setback for GM and Ford.
Actually about three weeks ago i started driving an E85 tahoe, so 85 % of what goes into my gas-guzzler is american-made. I do understand your point. Most months the trade deficits from auto-related sources is great than the defecit through oil.
I think you mean Daewoo is doing well in China. Good luck competing against the rest of the Korean manufacturers over time.
I'm also very proud of the many accomplishments of my Grandpa (A decorated WW II Marine), my Dad (A decorated Korean war Marine), and my Dad's "baby" brother (A deceased Vietnam war Marine killed in a Friendly Fire incident). But let's step back for a moment, deeply inhale the fine Nabob aroma from our morning coffee, park that incoming call into Voice Mail Hell, perhaps even have Mr. Wong the PE-certified ChemEng in my office proof-read my response. The "major economic crisis" brewing in the U.S. isn't part of some grand conspiracy theory being carried out by Japan, Inc. It's actually being carried out by every American who borrows to sustain their unsustainable lifestyle: car payments, mortgage, credit cards especially. Back when the debt needs could be met internally - by other folks who invested and *saved* - that wasn't too big of a deal. However, decades of credit bingeing has resulted in around 2/3 of tax revenues going to meet interest payments on past debt. Just like here in Canada. Think about it: the majority of current revenue is going to meet past debt. Like a family using most of their income to make minimum credit card payments. Most of your current debt is now carried by China, Inc. Again, just like here in Canada. The concept of a "negative saving rate" has been going on for some time now, and is firmly established. As far as your plan, sounds like a fine solution for your family. I would strongly encourage you to execute against it, pay off all your debts, and become as self-sufficient as possible. Perhaps you think of me as a left-wing nutjob, but I assure you I was raised a "traditional conservative" by my parents. They believed - and I believe - in zero debt, savings, keeping out of other folks business, small government, and small corporations, among other things. Which is 180 degrees out of phase compared to the current deranged neocon nutjob "spend ourselves into prosperity" bulls***. The following URL's also reflect some of my beliefs. I suggest you at least glance at them: http://mwhodges.home.att.net/cur-year-defi...sts.htm#paydebt http://mwhodges.home.att.net/debt_a.htm http://mwhodges.home.att.net/statistic-wizardry.htm http://mwhodges.home.att.net/family_a.htm http://mwhodges.home.att.net/inflation.htm http://mwhodges.home.att.net/nat-debt/debt-nat.htm http://www.financialsense.com/ Of course, since I advocate "traditional" conservatism and not the neocon "shop till you drop" version, I'm sure you will find fault with that.
So would you say that buying a Toyota is better for the economics in America than buying a Ford or GM? What about the profits? what about the taxes? what about the employement? what about the costs of regional economic shifts? On western capitalism I agree. The problem is that Toyota has a protected home turf. How powerful would GM and Ford be today if less than 5% of the 17 million vehicles sold in the US were sold by import badges ?
Re E85: American processed is a more accurate characterization. Three guesses where the source energy is derived from. Do you see $$ drain to Japan in the same light at $$ drain to the Middle East, Nigeria, and Venezuela ? Factor in the military costs involved in your consumption, and now tell me how the trade deficits look. Quite honestly, you may not want to open your eyes. Actual reality is not flattering.
I agree with you Jayman. If you investigate the savings rate there is a relationship with the trade deficit. Maybe it is all coincidence, maybe not.
You and I are talking of a different scale. In the short term, yes, buying a Toyota is not as good for the American economy as buying a Ford or a GM... it'll affect Ford and GM's finances that quarter or that year... but in the long term, that money spent is a vote of confidence for the direction of the auto industry. When I shelled out the money for my Prius, I was making a statement, yes... I was saying that I approved of this technology, and that it was appealing to me... but also I was sending a message that GM and Ford didn't have anything that met my expectations. In the long run, the money I spent on a Japanese car helps GM and Ford... it's a message to them to continue to innovate so that they might win my dollars next time. On the flipside, buying a GM car no matter what may benefit GM in the short term, but in the long term, it could cause them to stagnate. I will continue to buy the best car for me, thank you very much... Toyota has protected home turf, but even if it wasn't protected, do you expect GM and Ford to make much of an inroads there? Is that going to make all of the difference in the world?
So the corn is not grown in the states and the energy does not come from the sun? I know energy goes into growing the corn etc but is it more energy than it takes to pump oil out of ground and transport it thousands of miles? So Ericgo what is your answer? The Prius just lessens all of the evils you stated above, does it eliminate the need for militray intervention around the world?
Or you may find good information about "real" inflation here: http://www.financialsense.com/series4/part1.html That's the real reason I purchased a self-sufficient hobby farm around 7 years ago. I only hope I never have to use it for the intended purpose.
Aren't you sending mixed message with your purchase of a toyota? I agree the purchase of a Prius does send a message that as a consumer you are concerned about fuel-mileage and/or emissions. If that was all toyota built I would agree with your message but if you watched the Daytona 500 yesterday the PRius is really just a small part of toyota's business plan.
