Monday, February 1, 2016

Want to sell it here? Then you'd better make it here.

Analyzing the trade policy of the US government using the "Watch what I do, not what I say" method it is obvious their goal is to expedite the outsourcing of US jobs while enriching the people doing the outsourcing.  It is a happy accident then that the foreign policy of the US government has had the unexpected consequence of actually bringing the production of an iconic foreign product to the US.

In reaction to the 2014 Russian takeover of the Crimean peninsula from Ukraine, the Obama administration issued an executive order prohibiting the import of Russian guns.   This includes civilian legal versions of the AK-47 rifle - one of the most recognized and sought after firearms on the planet.  Within days the remaining Russian made guns were snatched up by AK enthusiasts, collectors and savvy investors.

The ban  disrupted the old supply but where there is demand the desire to make money will always create a new supplier. The company that used to import the rifles from Russia is now set to begin producing them in Florida instead.  The gun issue stirs up a lot of emotion on both sides, so please realize this post is just using a story about guns as an example to illustrate a much bigger picture.  This story shows that if the government of this country insists on keeping out a foreign product it can  succeed if the political will is there.  It shows that the market will still provide the products customers want and that it will produce them inside the nation's borders if necessary and friends it is beyond necessary.  It raises the question:  If a simple policy change means we can make something with fundamentally Russian DNA in America, why can't it also mean that we can make something quintessentially American like a pair of Levi's or a Ford pick up in America?  

This story can be repeated but like I said, that will take political will.  The presidential primary season kicks of today, the perfect opportunity for members of both parties to remind their prospective leaders that standing up for American industry is not a partisan issue - it is the will of the people and a requirement to get elected.

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