During his visit to Japan, the US President came upon a sudden revelation. He said “Try building your cars in the United States instead of shipping them over.” What a great idea! The nice part is Japan automakers are already building cars in Tennessee (Nissan), Ohio (Honda) and Kentucky (Toyota). Last time I checked, those three states are part of the US.
What sometimes gets lost in his bluster, demonization and excessive tweeting is a man who is not steeped in history, geography or current events. Nor, as folks who work with him have said, does he shows much interest in learning or doing homework to make himself more aware. So, we must live with John Belushi’s less-studious character in the movie “Animal House,” when he spoke of the “Germans bombing Pearl Harbor,” as our President.
How should Japan Prime Minister Shinzo Abe react to such an uninformed statement by our President? I wonder if he looked at an adviser and nonverbally conveyed “really?” Does the US President know BMWs are made in South Carolina, Volkswagens are made in Tennessee and Mercedes and Hyundais are made in Alabama, e.g.?
When we talk about global trade and jobs, we cannot overlook what these foreign companies and many others are doing here. They are employing American workers. The focus tends to look only at jobs lost and not jobs gained by global trade. That inappropriately simplifies the issue and leads to wrong conclusions.
Global trade increases the economic pie, especially when the global needs are nurtured. That is a key premise of the Nash Equilibrium which won a Nobel Prize for its creator John Nash. Yes, we need to be mindful of jobs lost and provide restorative action. This could range from retraining to recruiting new businesses or looking for trade-offs. The same strategy holds true with the more significant culprit in job loss, technology advances.
Initially, I thought the now President was over-simplifying things to sell his messiah-like message. Only I can solve your problems, believe me, he has said in numbers of ways. As award winning author Thomas Friedman said about the President, “He has no second paragraph.” The sad truth is the President has no second paragraph because he may not know what comes next.
A President does not need to know everything – that person cannot possibly fulfill that mission. But, we must have one that knows more things than this one does and who does not lie or bluff when he does not. And, if does not know, he need not be afraid of learning.