This is a subject that I am passionate about and one that I would like to explore on several levels.  I am going to discuss some basic economic implications of buying or not buying an American vehicle.  I will also discuss several misconceptions that a lot of people have about American and Forgien vehicles.

In a democracy and free market like we have here in the United States, we think of voting as selecting a canidate that we feel will best represent our interest.  Personally, I feel that we vote everyday.  In a free market, we vote with our dollars.  When we purchase an imported product, we are saying that it is okay to support another countries economy over our own.  We are saying that we believe that the forgien country builds a better product and that forgien jobs are more important than American jobs.  We are saying that it is okay for American companies to move jobs over seas to stay competitive.  Do you believe these things are true?  I know better and hope you do to.

I focus on the car business, because that is the business I am in and also because it is one of the largest driving forces of our economy.  When we look at how you vote on your next car purchase impacts the economy, I am going to touch on two related items.  The flow of money and the sustainability of jobs. 

When Toyota builds an assembly plant here in the United States, that does not mean they build an American car.  Ask yourself, where do the parts come from?  Most (about  60%) all of the parts are imported. When you vote to purchase that vehicle, where does the money go?  It goes back to Japan, where they use your money to fuel their economy.  It is this flow of money that is critical to supporting an economy.  Markets fail when people stop spending.  If people do not spend, then why should companies produce?  If they do not produce, why should they employ people.  So, companies let people go.  Since people aren't spending, there are no new jobs, so these unemployeed people will need to rely on the government.  When these people rely on the government, taxes have to be increased.  Guess what.  They take those taxes from the guy that didn't want to spend.  It is a vicious circle.  The only thing worse than sitting on your money and not spending, is completely taking your money out of the economy and sending it overseas. 

Let's say you voted the other way and had the good sense to support our local economy through purchasing an American vehicle.  Your money stays in the United States.  The American company uses this capital to increase production and create more jobs.  They spur the local economies through community involvment.  They order more parts and supplies from other American Companies and create even more jobs.  Do not feel as though your money only goes to support the guys in Detroit.  You would be amazed by how many local companies rely on the American Auto Manufacturer.  Ford, GM, and Chrysler have vendors and suppliers in every sate.  Think of everything it takes to build a car and bring it to market.  Trust me, a steel worker understands this value.  What about textiles, rubber gaskets, batteries, tires, and all the parts that go into building a vehicle.  When the car is built, someone has to ship it.  An advertising company has to market it.  A dealer has to sell it and service it.  Just think of all of the hands in the pot of the Auto Industry.  It is really staggering.  If those people lost thier job, how would it affect you?  If you sell a product or service, are those people your customer?  Will they continue to be if they are unemployeed?  I realize it is a complex chain of events, but they all directly effect each other.  It is impossible to list all of the implications here, but I hope at the very least, I have got you thinking.

I have been rambling about how important these jobs are and how the flow of money impacts these jobs.  One might reason that if we still bought the same number of cars, but just bought them from a import company that the number of jobs would remain the same.  I will concede that on a global scale, that could be true.  The problem is that half way around the world is a little long for a commute.  Personally, I am more concerned about the jobs here in the United States.