China is Our Friend, Mexico is Not
Yesterday we looked at the Carrier deal and how it is nothing more than a saving jobs smoke-and-mirror narrative. As we saw, Donald Trump bribed Carrier $14,830 per job it kept in Indiana. We also looked at how Donald Trump demonized México as a job killer. Like Carrier, Donald Trump also strong-armed Ford into keeping jobs in the country rather than moving them to México. Ford had begun building a sophisticated plant to manufacture the Ford Focus in Hermosillo México. Shortly after the attacks by Trump against manufacturers sending jobs to México dominated the news cycles, Ford announced it wasn’t going to México after all.
Another job saving win for Donald Trump trumped up the Trump surrogates and the news media.
But was it really a win?
Not only was it not a win for saving jobs in the United States but it is also killing jobs in México.
Ford had planned on investing $1.6 billion in a Focus assembly plant in México. But then Donald Trump came along and the Mexican investment by Ford fizzled away.
Wow, the jobs are coming to the United States along with the $1.6 billion in Ford investments is what some of you are likely thinking.
Unfortunately, the facts trump up Trump once again.
Instead of the jobs going to U.S. plants or to México, they are now going to China.
Yup, the great U.S. ally that is China, is not only getting the investment in U.S. dollars but also the jobs.
Therein lies the problem with Donald Trump. All the promises that many voters voted for are an illusion. They are not real.
Not only are the jobs not coming back, but México lost out in jobs and an investment opportunity because of Trump. Some of you may celebrate this, but as you do so, keep in mind that México has a symbiotic trade relationship with the United States. When a job is created in México, it creates jobs in the United States. It is not a one-to-one relationship, but it is relationship that creates one job for every 20, 50, 100 or more Mexican jobs, depending on which metric is used or accepted.
Can you say that about China?
What is worse, while China is looking to antagonize the United States with its on-again, off-again North Korean help, or buzzing U.S. military assets, México and Mexicans are just looking to build a beneficial relationship with the United States.
This begs the question, how is this making America great again?