May 31st 2017
Trump's comments on Germany show a breathtaking ignorance of
the free market economy. The trade deficit that exists with Germany is a
reflection of the consumer demand in America for quality German products
that can't be matched by domestic producers. Moreover, German automakers
employ over 33,000 Americans who manufacture German luxury cars right here in
the USA and export more than $10billion annually, a sum that partially offsets
our deficit. German sales in the US are less than 7% of the US auto market.
This is hardly foreign domination. Additionally, investments pouring in from
Germany to establish manufacturing facilities and support other American
interests benefit many hundreds of thousands of working Americans. Trump's
crass tweets and comments are a clear indication that he has no grasp of the
complexity of the modern global economy. His unthinking pronouncements can harm
decades old relationships and endanger the future for many Americans employed
by German and other foreign investors.
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