Walmart buys over 10,000 products from Chinese producers. These products are sold to you and Walmart buys them from China because they are cheaper than American-made products. About 80% of all products in a Walmart store come from China. According to the American Alliance for Manufacturing, Walmart makes “$34,895 in profit every minute;” and “$10,000,000 in profit every 5 hours.”
According to the Federal Trade Commission, a product made in the U.S.A. is one where “all the significant components of a product, along with the processing and labor, must be of U.S. origin.” I want to buy a U.S. made TV at Walmart. Assembled in the U.S. does not mean made in the U.S. You cannot buy a U.S. made TV at Walmart. You cannot buy one anywhere. R.C.A., Magnavox, Westinghouse, and Zénith, used to manufacture TVs in the U.S. and they are all gone. Some brands claim to be made in the U.S.A. but they are not. They are assembled in the U.S. with foreign parts. Sharp, Toshiba, Panasonic, and Sony all contain Chinese parts. Consumer Reports recommends an LG TV, which is predominately made in Indonesia. It also recommends a Samsung made in Vietnam and India. Roku and Hisense TVs are manufactured in China. So you pick out a 65″ Hisense TV and today it costs $378. Pretty good deal. But if you wait until after November, Vance and his cronies promise to increase the cost of this TV through tariffs of 60%, now it costs $604. What does that do to your buying power and inflation? Did those who came up with this idea double your salary?
Walmart has a made in America program, but 80% of its suppliers are still in China. “Walmart has been the single largest U.S. importer of consumer goods, surpassing the trade volume of entire countries and remains the top U.S. importer, according to the Journal of Commerce.
The Tax Foundation found in June that: “Economists generally agree free trade increases the level of economic output and income, while conversely, trade barriers (tariffs) reduce economic output and income. Historical evidence shows tariffs raise prices and reduce available quantities of goods and services for U.S. businesses and consumers, which results in lower income, reduced employment, and lower economic output.” We know raising our tariffs causes other countries to raise their tariffs, causing Americans to pay more at the point of sale.
But think about that shopping trip to Walmart where 80% of their items come from China. American manufacturing represents 11% of the gross domestic product, a decline since 1979. Corporations sent business to China and elsewhere to cut labor costs. The government can do much to grow manufacturing here in the U.S. and employ Americans.
Buy American for American projects paid for by American taxpayers and penalize American corporations sending operations overseas.
David Madden is a retired trial attorney. He was an Infantry platoon leader and LTC in the JAG Corps.
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