Trump: Germany Has Unfair Advantage

He’s right and the left doesn’t want to talk about it.

In light of Trump’s Eurotrip, leftist media has been blowing up the comments he made pointed at Germany, comments on what he feels are the imbalances in trade between Germany and the United States. As an example, Trump claimed that the fact Mercedes-Benz is ubiquitous in the US, while Germany has so few Chevys lining the streets, is proof that there’s a trade imbalance. Then a random caddy German responded with, “the US just needs to build better cars”, and the left called the fight 1 — 0 Germans. Now back to RUSSIAN COLLUSION.

Chevy actually makes great cars that beat the hell out of Renault, Peugeot, Citroën, and Dacia; these are ubiquitous in Germany and they’re inferior to Chevy in quality and reliability. Those four are on par with modern Nissan cars in terms of quality and reliability… by that I mean they’re generally not good quality or reliable. Renault, Peugeot, Citroën are French, while Dacia is Romanian. So Germany does import cars and mediocre ones at that.

Writing on the Wall

It turns out that Trump was actually on to something, something that isn’t even a secret, it’s just not something the EU likes to talk about — like how they avoid talking about Islamic fundamentalism. It’s fair game to trash America, but dare you criticize the EU? Heresy!

I still listen NPR just enough to keep my frustration levels up, but not enough to want to punch out my radio. NPR brought on one of their “experts” who made the demonstrably false equivalence that Trump calling out Germany would be the same as Germany calling out Michigan, rather than addressing the US government or in this case, the EU as a whole(?). It makes less sense the more you think about it and then you realize that it’s not funny, and it isn’t just wrong, it’s stupid. Think about that. Germany is — we are getting to that — responsible for creating an imbalance, but Trump should be angry at the EU as a whole? I thought the left was above making generalizations.

NPR ran with it, of course, and nobody bothered to call him on his bullshit. No questions asked. Back our regularly scheduled programming of RUSSIAN COLLUSION and my new favorite NPR bit: imploring listeners to think of ISIS fighters as marginalized, misunderstood Muslims, rather than the vicious killers that they really are. That’s not the title of an Onion article. It’s NPR.

Why?

Why does the left insist America’s problems are rooted in the fact that America sucks? Why does Chevy suck? Why does freedom suck? Because imperialism, you chauvinist.

The truth is that the left doesn’t like to discuss nuance in the issues, because nuance means questions, and questions means their narrative is being threatened — they’re like an intellectual Inquisition. What better way is there to get people to buy your lies, than to make a frivolous joke and sound like you know what you’re taking about? The left excels at deflection and misinformation, but it only works if you take what they say at face value.

The fact is that there are economic imbalances in the EU, but again, to criticize the European project is to commit thought crime. There would be economic imbalances if Canada, Mexico, America, and Brazil were to suddenly agree to use the dollar. This is common sense, something not held in high regard among leftists.

What did Trump unwittingly point to?

Lara Merling, a member of the first class of graduate students at the Levy Institute and contributor to The Minksys, details what an “unfair advantage” for Germany really means:

“An IMF analysis of Germany’s currency found “an undervaluation of 5 — 15 percent” for the Euro in the case of Germany. Thus for Germany, the Euro has a significantly lower value than a solely German currency would have.”

Wait, I thought the “expert” on NPR said this couldn’t happen? Lara continues,

“Since the Euro was introduced, Germany has become an export powerhouse. This is not because after 2000 the quality of German goods has improved, but rather because as a member of the Eurozone, Germany had the opportunity to boost its exports with policies that allowed it to maintain an undervalued currency.
In the early 2000s Germany undertook several national policies to artificially hold wages down. These measures were seen as a success for Germany globally. By being part of the Eurozone and holding down wages, the Germans could export at extremely competitive prices globally. Had they not been part of the Eurozone, their currency would have appreciated, and they would not have the same advantages.”

But Lara! CNN, NPR, and USA Today said that the German guy who challenged America to make better cars was right? I thought that Germany didn’t have an advantage that could negatively affect other countries?

“In the aftermath of the European debt crisis, Germany took a tough stance on struggling debtor countries. Under German leadership, the European Commission imposed draconic austerity measures on countries such as Greece to punish them for spending irresponsibly. Spearheaded by Germany, The EU (along with the IMF) offered a bailout to Greece so that it could pay the German and French banks it owed money to.
This bailout came with strict conditions for the Greek government that was forced to impose harsh austerity. The promise was that if the government cut its spending, the increased market confidence would help the economy recover. As a member of the Eurozone, Greece had very limited monetary policy tools it could use. Currency devaluation was no longer an option, the country was stuck with a currency that was too strong for its economy.
Meanwhile Germany prospered and enjoyed the perks of an undervalued currency. Being able to supply German goods at relatively low prices, Germany’s exports flourished. At the same time, Greeks, and other countries at the periphery of the union, were only left with the choice to face a strong internal devaluation, which meant letting unemployment explode and wages collapse until they become attractive destinations for investment.
Germany consistently broke the rules of the currency area, without ever being punished. When it first broke the deficit limits agreed upon by Eurozone members in 2003, the European Commission turned a blind eye.”

To be clear, Germany isn’t trying to make an evil empire, they’re just in a good position to make a lot of money off the EU’s flaws and they are, but the pains are coming. The article is absolutely brilliant and it reiterates what every informed European already knows: the EU hasn’t worked for everyone and its policy makers needs to be open to criticism if they want it to succeed. This denial of facts is an internationally common characteristic of the left. Whether it’s the hosts of CNN, campus slacktivists, or Madam Macron. The EU can work, it can work for everyone, cooperation and sovereignty are possible. But in the EU’s current form, the elite prosper most and even the average German citizen is starting to feel the squeeze of the repercussions of runaway globalism. In Lara’s words,

The main takeaway from the French presidential election is that criticism of the European Union (EU), including the eurozone, is not well received regardless of its validity. While Europe might currently be breathing a sigh of relief, the strategy of silencing and ridiculing those who express dissatisfaction with EU policies is dangerous for its future.

No one suffers more under the tyranny of the left than the people they claim to help.

You can and absolutely should read Lara’s full article here.