Sustainable Transport Club
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Economic Data
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For Our Children
Oil and Cars
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Imported Oil Undermines our Economic Recovery and
is Wiping Out JOBS for our People
This data is coming from the US Dept of Commerce.
Click here for the details.
The Money is Leaving to Pay for Imported Oil
Over TWO TRILLION Dollars in the Last TEN Years!
How is Our Dependence on Imported Oil Making it Almost Impossible
for the Economy to Recover and Create Jobs?
That is approximately how many dollars have left the US economy to pay for oil and gas in the last decade. That is close to one third of our total balance of traden money drain. The last five years were the worst ever with the average Imports per year being close to $350 billion per year. Just incase you are picky about the details, the total imports of oil and gas are very close to the balance of trade for the products the net exports are barely two percent of the imports.

The graph below shows just how much money left the economy and how quickly it increased. The peak in 2008 was this huge spike that drove massive cash out of our economy. That Spike was over $200 billion dollars more than 2005 or 2009.

What year did our economy collapse? Anyone else find that looking more like a cause than a result? What do you think would be the result of a 1.1 trillion dollar balance of trade money drain in only THREE years?
The Money is Also Leaving to Pay for Cars, Trucks and SUVs.
Over ONE TRILLION Dollars in the Last Ten Years!
That is how much left the US economy to pay for motor vehicles and parts in the last decade. The rate of this balance of trade money drain to buy vehicles has gone up almost three times compared with the previous decade. When you combine that with the Oil and Gas numbers they account for over one half of our total balance of payments.

The graph below shows just how much of the money drain is attributed to Foreign Oil and Vehicles. Combined they are well over half the economic drain that is sending jobs over seas. The other big chunk is our general trade with China. The trade with China does not include much oil but it does include an increasing volume of vehicles. These three trade items account for over 80% of the dollars leaving our country. If we can fix these we will be able to get back on top of our game.
With Foreign Oil and Imported Vehicles accounting for over half our trade problems, it gives strong support to the need for sustainable vehicles. The most sustainable vehicles are a group that can be referred to as Local Use Vehicles.
How can we put the American taxpayer back to work
making energy efficient vehicles?
Vehicles like this all electric Local Use Vehicle can
stop our dependence if people would make the right choices.
Stop Oil Dependence

Amount Spent on Importing
OIL & GAS plus PETROLEUM & COAL

In One Year - 2008

$484 Billion

In Ten Years from 1990 to 1999

$550 Billion

Percent of Ten Year Amount

88%

Creating an auto industry that produces energy efficient vehicles would fix these huge economic drains. Not only can we cut our oil dependence with the right vehicles but we can create jobs to do it.

The first step is to build more of the cars that Americans need. The vehicles we need are also the vehicles people need in the rest of the world. With the right models in the line up we could start to export more vehicles and get some of our dollars back as profit.

The part of the market that has the most potential is the passenger vehicle side. The U.S. currently builds less than 10% of the passenger vehicles we consume. This is because the rest of the world has so called economic advantages for producing these vehicles. That is economist talk for lower labor costs and less demanding quality of life concerns. What it really means is that the US business and workers need to figure out how much they want to work and do business. We need to figure out how to get competitive again.

The details of the General Motors and Chrysler bailouts show us some of the challenges involved. The pay scale, benefits and retirement for almost all the people involved is so much higher than the rest of the world, how could we compete? It is no wonder we have turned our passenger vehicle business over to places with lower labor costs.

The other side of this is to see just how big the money drain is for these vehicles. Most people think that the foreign owned companies now make many vehicles in America. The numbers really show how that just is not the case. Many companies have plants that produce vehicles here but a look at the parts balance of trade shows the rest of the story. Both parts and bodies are brought to this country and assembled here in the U.S. It does bring some jobs into the country but the numbers for our top five partners show a fuller picture.
How Can we Turn our Vehicle Imports Around?
The numbers show where the wealth and the jobs have gone. The people in these countries are probably wonderful people but they do not pay taxes in the U.S.A. That means the money spent to grow our economy is not paid back. How much do we really save on cheap cars when we have to pay back the national debt at some point?

Balance of Trade
in Millions

MOTOR

 

 

From 2000 to 2009

VEHICLES

 MV PARTS

 MV BODIES

 Total for the World

-950,535  

-184,596 

5,167 

 Japan

-350,188  

-103,361 

-616 

 Canada

-226,617  

97,164 

8,900 

 Mexico

-165,882  

-82,180 

-1,996 

 Germany

-131,826  

-34,417 

-1,933 

 South Korea

-73,197  

-12,873 

66 

There are five basic options to solve this problem and produce the vehicles we need in this country. Only the first two would please most people involved. The third option might be acceptable to enough people to make a go.

      Improve the production technology to cut costs and keep better labor rates.

     Create new transportation technology and control the international patents to keep the technology in this country.

     Create Tax and Regulatory incentives for U.S. based Companies to keep jobs in the U.S.

      Manufacture vehicles using labor rates like those in the competing countries.

      Put up trade tariffs that allow domestic companies to compete, which would raise prices in this country and start trade wars. It would also raise government revenue to make up for lost payroll taxes.

The positive side is the opportunities created by these challenges. Those opportunities mean new businesses and new jobs.

The concept of creating Local Use Vehicles (or LUVs for short) represents one such opportunity. The problem is that we have to get lots of people to give up their gasoline touring cars and accept the extra work and the up front expense of things like battery electric cars. The good part is that these and other related technologies are viable and would be affordable if they were produced in sufficient volume. Getting there means lots of people accepting the concept of the Local Use Vehicle being not only workable but good and cool and important and urgent.

The LocalUseVehicle.net website starts to show how that works and even more details are available by contacting our group. It would really be great if we could focus on that and get moving.
All of this creates urgent and strong pressure to create Sustainable Transportation Technology to be produced here in the U.S.A.
Unfortunately the problem is so big it might take all five of these to get the job done. One thing that would mean is that the domestic automakers would need to include new companies that are not tied to existing Union contracts. This is all tough stuff to look at.

There is another side to these five options. They could be applied to all of the manufactured goods we purchase in this country. The focus point of that would be our trade with China.

It is hard to look at this. One of the underlying issues is to do with how much the American worker can expect to be paid in comparison to workers in other countries like South Korea and China. Global free trade is putting pressure on that wage so that all the production workers in the world economy end up with the same standard of living. That would apply to unskilled, skilled, lower and mid management equally.
Click here to learn more about LUVS to see what sorts of
companies can grow through the LUV Plan.
Click here to go to the contact page and join with us in creating the solutions.
Stop Oil Dependence
Copyright Speakers Press July 2010 all rights reserved. Use rights free for not for profits when authorized 805-652-1482
The total paid for these imports in ten years is so huge ($1.9 Trillion) the number is hard for anyone to relate to. The best way to grasp that is that it is bigger than the total amount of goods and services produced in one year by the entire State of California ($1.84 trillion). And, California is quoted as being the eighth largest economy in the world.

The other thing about it is that it is four times bigger than the $550 Billion that left the economy to pay for oil and gas for the preceding TEN years. We are consuming that much in less than TWO years now! In point of fact we consumed almost as much in 2008 as we did in the entire decade of the 90's.
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