[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.88,0:00:02.58,Default,,0000,0000,0000,,When someone mentions Cuba,
Dialogue: 0,0:00:02.60,0:00:03.80,Default,,0000,0000,0000,,what do you think about?
Dialogue: 0,0:00:05.20,0:00:07.26,Default,,0000,0000,0000,,Classic, classic cars?
Dialogue: 0,0:00:07.28,0:00:08.60,Default,,0000,0000,0000,,Perhaps good cigars?
Dialogue: 0,0:00:09.60,0:00:11.70,Default,,0000,0000,0000,,Maybe you think\Nof a famous baseball player.
Dialogue: 0,0:00:11.72,0:00:14.06,Default,,0000,0000,0000,,What about when somebody\Nmentions North Korea?
Dialogue: 0,0:00:14.08,0:00:16.18,Default,,0000,0000,0000,,You think about those missile tests,
Dialogue: 0,0:00:16.20,0:00:18.10,Default,,0000,0000,0000,,maybe their notorious leader
Dialogue: 0,0:00:18.12,0:00:20.12,Default,,0000,0000,0000,,or his good friend, Dennis Rodman.
Dialogue: 0,0:00:20.64,0:00:22.14,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:00:22.16,0:00:24.50,Default,,0000,0000,0000,,One thing that likely doesn't come to mind
Dialogue: 0,0:00:24.52,0:00:26.28,Default,,0000,0000,0000,,is a vision of a country,
Dialogue: 0,0:00:26.96,0:00:28.22,Default,,0000,0000,0000,,an open economy,
Dialogue: 0,0:00:28.24,0:00:32.76,Default,,0000,0000,0000,,whose citizens have access to a wide range\Nof affordable consumer products.
Dialogue: 0,0:00:35.24,0:00:39.86,Default,,0000,0000,0000,,I'm not here to argue how these countries\Ngot to where they are today.
Dialogue: 0,0:00:39.88,0:00:43.58,Default,,0000,0000,0000,,I simply want to use them\Nas an example of countries and citizens
Dialogue: 0,0:00:43.60,0:00:46.82,Default,,0000,0000,0000,,who have been affected,\Nnegatively affected,
Dialogue: 0,0:00:46.84,0:00:49.12,Default,,0000,0000,0000,,by a trade policy that restricts imports
Dialogue: 0,0:00:49.96,0:00:51.48,Default,,0000,0000,0000,,and protects local industries.
Dialogue: 0,0:00:52.48,0:00:55.38,Default,,0000,0000,0000,,Recently we've heard a number of countries
Dialogue: 0,0:00:55.40,0:00:57.58,Default,,0000,0000,0000,,talk about restricting imports
Dialogue: 0,0:00:57.60,0:01:00.62,Default,,0000,0000,0000,,and protecting their local,\Ndomestic industries.
Dialogue: 0,0:01:00.64,0:01:03.90,Default,,0000,0000,0000,,Now, this may sound fine in a sound bite,
Dialogue: 0,0:01:03.92,0:01:06.16,Default,,0000,0000,0000,,but what it really is is protectionism.
Dialogue: 0,0:01:07.16,0:01:10.92,Default,,0000,0000,0000,,We heard a lot about this\Nduring the 2016 presidential election.
Dialogue: 0,0:01:11.60,0:01:14.06,Default,,0000,0000,0000,,We heard about it\Nduring the Brexit debates
Dialogue: 0,0:01:14.08,0:01:17.40,Default,,0000,0000,0000,,and most recently\Nduring the French elections.
Dialogue: 0,0:01:18.68,0:01:21.42,Default,,0000,0000,0000,,In fact, it's been\Na really important topic
Dialogue: 0,0:01:21.44,0:01:23.58,Default,,0000,0000,0000,,being talked about around the world,
Dialogue: 0,0:01:23.60,0:01:26.02,Default,,0000,0000,0000,,and many aspiring political leaders
Dialogue: 0,0:01:26.04,0:01:29.60,Default,,0000,0000,0000,,are running on platforms\Npositioning protectionism as a good thing.
Dialogue: 0,0:01:30.80,0:01:33.58,Default,,0000,0000,0000,,Now, I could see why they think\Nprotectionism is good,
Dialogue: 0,0:01:33.60,0:01:37.72,Default,,0000,0000,0000,,because sometimes\Nit seems like trade is unfair.
Dialogue: 0,0:01:39.12,0:01:41.06,Default,,0000,0000,0000,,Some have blamed trade
Dialogue: 0,0:01:41.08,0:01:44.22,Default,,0000,0000,0000,,for some of the problems\Nwe've been having here at home in the US.
Dialogue: 0,0:01:44.24,0:01:45.62,Default,,0000,0000,0000,,For years we've been hearing
Dialogue: 0,0:01:45.64,0:01:48.84,Default,,0000,0000,0000,,about the loss of high-paying\NUS manufacturing jobs.
Dialogue: 0,0:01:49.56,0:01:53.14,Default,,0000,0000,0000,,Many think that manufacturing\Nis declining in the US
Dialogue: 0,0:01:53.16,0:01:56.30,Default,,0000,0000,0000,,because companies are moving\Ntheir operations offshore
Dialogue: 0,0:01:56.32,0:01:58.74,Default,,0000,0000,0000,,to markets with lower-cost labor
Dialogue: 0,0:01:58.76,0:02:01.32,Default,,0000,0000,0000,,like China, Mexico and Vietnam.
Dialogue: 0,0:02:02.72,0:02:06.38,Default,,0000,0000,0000,,They also think trade agreements\Nsometimes are unfair,
Dialogue: 0,0:02:06.40,0:02:08.10,Default,,0000,0000,0000,,like NAFTA
Dialogue: 0,0:02:08.12,0:02:09.94,Default,,0000,0000,0000,,and the Trans-Pacific Partnership,
Dialogue: 0,0:02:09.96,0:02:13.42,Default,,0000,0000,0000,,because these trade agreements\Nallow companies
Dialogue: 0,0:02:13.44,0:02:16.68,Default,,0000,0000,0000,,to reimport those cheaply\Nproduced goods back into the US
Dialogue: 0,0:02:17.72,0:02:20.86,Default,,0000,0000,0000,,and other countries\Nfrom where the jobs were taken.
Dialogue: 0,0:02:20.88,0:02:23.98,Default,,0000,0000,0000,,So it kind of feels like the exporters win
Dialogue: 0,0:02:24.00,0:02:26.00,Default,,0000,0000,0000,,and the importers lose.
Dialogue: 0,0:02:26.96,0:02:28.18,Default,,0000,0000,0000,,Now, the reality is
Dialogue: 0,0:02:28.20,0:02:31.12,Default,,0000,0000,0000,,output in the manufacturing\Nsector in the US
Dialogue: 0,0:02:32.08,0:02:33.82,Default,,0000,0000,0000,,is actually growing,
Dialogue: 0,0:02:33.84,0:02:35.42,Default,,0000,0000,0000,,but we are losing jobs.
Dialogue: 0,0:02:35.44,0:02:36.68,Default,,0000,0000,0000,,We're losing lots of them.
Dialogue: 0,0:02:37.40,0:02:40.10,Default,,0000,0000,0000,,In fact, from 2000 to 2010,
Dialogue: 0,0:02:40.12,0:02:43.76,Default,,0000,0000,0000,,5.7 million manufacturing jobs were lost.
Dialogue: 0,0:02:44.56,0:02:48.12,Default,,0000,0000,0000,,But they're not being lost\Nfor the reasons you might think.
Dialogue: 0,0:02:49.12,0:02:50.96,Default,,0000,0000,0000,,Mike Johnson in Toledo, Ohio
Dialogue: 0,0:02:52.08,0:02:54.06,Default,,0000,0000,0000,,didn't lose his jobs at the factory
Dialogue: 0,0:02:54.08,0:02:56.54,Default,,0000,0000,0000,,to Miguel Sanchez in Monterrey, Mexico.
Dialogue: 0,0:02:56.56,0:02:57.78,Default,,0000,0000,0000,,No.
Dialogue: 0,0:02:57.80,0:03:00.08,Default,,0000,0000,0000,,Mike lost his job to a machine.
Dialogue: 0,0:03:01.60,0:03:04.90,Default,,0000,0000,0000,,87 percent of lost manufacturing jobs
Dialogue: 0,0:03:04.92,0:03:07.74,Default,,0000,0000,0000,,have been eliminated\Nbecause we've made improvements
Dialogue: 0,0:03:07.76,0:03:10.32,Default,,0000,0000,0000,,in our own productivity\Nthrough automation.
Dialogue: 0,0:03:11.72,0:03:16.42,Default,,0000,0000,0000,,So that means that one out of 10\Nlost manufacturing jobs
Dialogue: 0,0:03:16.44,0:03:18.72,Default,,0000,0000,0000,,was due to offshoring.
Dialogue: 0,0:03:19.68,0:03:22.10,Default,,0000,0000,0000,,Now, this is not just a US phenomenon.
Dialogue: 0,0:03:22.12,0:03:23.34,Default,,0000,0000,0000,,No.
Dialogue: 0,0:03:23.36,0:03:26.70,Default,,0000,0000,0000,,In fact, automation is spreading\Nto every production line
Dialogue: 0,0:03:26.72,0:03:28.64,Default,,0000,0000,0000,,in every country around the world.
Dialogue: 0,0:03:29.72,0:03:31.34,Default,,0000,0000,0000,,But look, I get it:
Dialogue: 0,0:03:31.36,0:03:32.86,Default,,0000,0000,0000,,if you just lost your job
Dialogue: 0,0:03:32.88,0:03:34.54,Default,,0000,0000,0000,,and then you read in the newspaper
Dialogue: 0,0:03:34.56,0:03:37.18,Default,,0000,0000,0000,,that your old company\Njust struck up a deal with China,
Dialogue: 0,0:03:37.20,0:03:39.66,Default,,0000,0000,0000,,it's easy to think you were just replaced
Dialogue: 0,0:03:39.68,0:03:40.88,Default,,0000,0000,0000,,in a one-for-one deal.
Dialogue: 0,0:03:42.08,0:03:45.06,Default,,0000,0000,0000,,When I hear stories like this,\NI think that what people picture
Dialogue: 0,0:03:45.08,0:03:48.36,Default,,0000,0000,0000,,is that trade happens\Nbetween only two countries.
Dialogue: 0,0:03:49.12,0:03:51.54,Default,,0000,0000,0000,,Manufacturers in one country
Dialogue: 0,0:03:51.56,0:03:53.50,Default,,0000,0000,0000,,produce products and they export them
Dialogue: 0,0:03:53.52,0:03:56.16,Default,,0000,0000,0000,,to consumers in other countries,
Dialogue: 0,0:03:57.00,0:04:00.02,Default,,0000,0000,0000,,and it feels like\Nthe manufacturing countries win
Dialogue: 0,0:04:00.04,0:04:02.60,Default,,0000,0000,0000,,and the importing countries lose.
Dialogue: 0,0:04:03.52,0:04:06.04,Default,,0000,0000,0000,,Well, reality's a little bit different.
Dialogue: 0,0:04:07.40,0:04:08.98,Default,,0000,0000,0000,,I'm a supply chain professional,
Dialogue: 0,0:04:09.00,0:04:10.76,Default,,0000,0000,0000,,and I live and work in Mexico.
Dialogue: 0,0:04:12.52,0:04:13.78,Default,,0000,0000,0000,,And I work in the middle
Dialogue: 0,0:04:13.80,0:04:16.98,Default,,0000,0000,0000,,of a highly connected network\Nof manufacturers
Dialogue: 0,0:04:17.00,0:04:19.14,Default,,0000,0000,0000,,all collaborating from around the world
Dialogue: 0,0:04:19.16,0:04:21.56,Default,,0000,0000,0000,,to produce many\Nof the products we use today.
Dialogue: 0,0:04:22.60,0:04:23.82,Default,,0000,0000,0000,,What I see
Dialogue: 0,0:04:23.84,0:04:26.42,Default,,0000,0000,0000,,from my front-row seat in Mexico City
Dialogue: 0,0:04:26.44,0:04:28.76,Default,,0000,0000,0000,,actually looks more like this.
Dialogue: 0,0:04:29.68,0:04:33.76,Default,,0000,0000,0000,,And this is a more accurate depiction\Nof what trade really looks like.
Dialogue: 0,0:04:34.62,0:04:36.62,Default,,0000,0000,0000,,I've had the pleasure of being able to see
Dialogue: 0,0:04:36.64,0:04:39.14,Default,,0000,0000,0000,,how many different products\Nare manufactured,
Dialogue: 0,0:04:39.16,0:04:41.98,Default,,0000,0000,0000,,from golf clubs to laptop computers
Dialogue: 0,0:04:42.00,0:04:44.58,Default,,0000,0000,0000,,to internet servers, automobiles
Dialogue: 0,0:04:44.60,0:04:45.80,Default,,0000,0000,0000,,and even airplanes.
Dialogue: 0,0:04:46.52,0:04:49.28,Default,,0000,0000,0000,,And believe me, none of it\Nhappens in a straight line.
Dialogue: 0,0:04:50.44,0:04:51.73,Default,,0000,0000,0000,,Let me give you an example.
Dialogue: 0,0:04:53.52,0:04:57.78,Default,,0000,0000,0000,,A few months ago, I was touring\Nthe manufacturing plant
Dialogue: 0,0:04:57.80,0:05:00.78,Default,,0000,0000,0000,,of a multinational aerospace company
Dialogue: 0,0:05:00.80,0:05:02.08,Default,,0000,0000,0000,,in Querétaro, Mexico,
Dialogue: 0,0:05:02.92,0:05:06.48,Default,,0000,0000,0000,,and the VP of logistics points out\Na completed tail assembly.
Dialogue: 0,0:05:07.44,0:05:11.82,Default,,0000,0000,0000,,It turns out the tail assemblies\Nare assembled from panels
Dialogue: 0,0:05:11.84,0:05:14.34,Default,,0000,0000,0000,,that are manufactured in France,
Dialogue: 0,0:05:14.36,0:05:16.58,Default,,0000,0000,0000,,and they're assembled in Mexico
Dialogue: 0,0:05:16.60,0:05:19.52,Default,,0000,0000,0000,,using components imported from the US.
Dialogue: 0,0:05:20.04,0:05:22.06,Default,,0000,0000,0000,,When those tail assemblies are done,
Dialogue: 0,0:05:22.08,0:05:24.54,Default,,0000,0000,0000,,they're exported via truck to Canada
Dialogue: 0,0:05:24.56,0:05:26.74,Default,,0000,0000,0000,,to their primary assembly plant
Dialogue: 0,0:05:26.76,0:05:28.02,Default,,0000,0000,0000,,where they come together
Dialogue: 0,0:05:28.04,0:05:30.46,Default,,0000,0000,0000,,with thousands of other parts,
Dialogue: 0,0:05:30.48,0:05:32.86,Default,,0000,0000,0000,,like the wings and the seats
Dialogue: 0,0:05:32.88,0:05:35.78,Default,,0000,0000,0000,,and the little shades\Nover the little windows,
Dialogue: 0,0:05:35.80,0:05:38.20,Default,,0000,0000,0000,,all coming in to become\Na part of a new airplane.
Dialogue: 0,0:05:39.48,0:05:40.68,Default,,0000,0000,0000,,Think about it.
Dialogue: 0,0:05:41.32,0:05:42.78,Default,,0000,0000,0000,,These new airplanes,
Dialogue: 0,0:05:42.80,0:05:45.38,Default,,0000,0000,0000,,before they even take their first flight,
Dialogue: 0,0:05:45.40,0:05:47.86,Default,,0000,0000,0000,,they have more stamps in their passports
Dialogue: 0,0:05:47.88,0:05:49.12,Default,,0000,0000,0000,,than Angelina Jolie.
Dialogue: 0,0:05:50.76,0:05:54.26,Default,,0000,0000,0000,,Now, this approach to processing\Ngoes on all around the world
Dialogue: 0,0:05:54.28,0:05:56.78,Default,,0000,0000,0000,,to manufacture many of the products
Dialogue: 0,0:05:56.80,0:05:59.34,Default,,0000,0000,0000,,we use every day,
Dialogue: 0,0:05:59.36,0:06:01.68,Default,,0000,0000,0000,,from skin cream to airplanes.
Dialogue: 0,0:06:02.52,0:06:04.96,Default,,0000,0000,0000,,When you go home tonight,\Ntake a look in your house.
Dialogue: 0,0:06:05.68,0:06:08.88,Default,,0000,0000,0000,,You might be surprised to find\Na label that looks like this one:
Dialogue: 0,0:06:10.08,0:06:14.28,Default,,0000,0000,0000,,"Manufactured in the USA\Nfrom US and foreign parts."
Dialogue: 0,0:06:15.16,0:06:17.34,Default,,0000,0000,0000,,Economist Michael Porter
Dialogue: 0,0:06:17.36,0:06:19.32,Default,,0000,0000,0000,,described what's going on here best.
Dialogue: 0,0:06:19.84,0:06:24.58,Default,,0000,0000,0000,,Many decades ago, he said\Nthat it's most beneficial for a country
Dialogue: 0,0:06:24.60,0:06:28.98,Default,,0000,0000,0000,,to focus on producing the products\Nit can produce most efficiently
Dialogue: 0,0:06:29.00,0:06:30.76,Default,,0000,0000,0000,,and trading for the rest.
Dialogue: 0,0:06:32.00,0:06:34.76,Default,,0000,0000,0000,,So what he's talking about here\Nis shared production,
Dialogue: 0,0:06:35.52,0:06:37.40,Default,,0000,0000,0000,,and efficiency is the name of the game.
Dialogue: 0,0:06:38.72,0:06:41.26,Default,,0000,0000,0000,,You've probably seen an example of this
Dialogue: 0,0:06:41.28,0:06:42.64,Default,,0000,0000,0000,,at home or at work.
Dialogue: 0,0:06:43.80,0:06:45.54,Default,,0000,0000,0000,,Let's take a look at an example.
Dialogue: 0,0:06:45.56,0:06:47.68,Default,,0000,0000,0000,,Think about how your house was built
Dialogue: 0,0:06:48.52,0:06:49.92,Default,,0000,0000,0000,,or your kitchen renovated.
Dialogue: 0,0:06:50.60,0:06:53.06,Default,,0000,0000,0000,,Typically, there's a general contractor
Dialogue: 0,0:06:53.08,0:06:55.30,Default,,0000,0000,0000,,who is responsible\Nfor coordinating the efforts
Dialogue: 0,0:06:55.32,0:06:56.94,Default,,0000,0000,0000,,of all the different contractors:
Dialogue: 0,0:06:56.96,0:06:58.60,Default,,0000,0000,0000,,an architect to draw the plans,
Dialogue: 0,0:06:59.48,0:07:02.42,Default,,0000,0000,0000,,an earth-moving company\Nto dig the foundation,
Dialogue: 0,0:07:02.44,0:07:04.32,Default,,0000,0000,0000,,a plumber, a carpenter and so on.
Dialogue: 0,0:07:05.00,0:07:06.86,Default,,0000,0000,0000,,So why doesn't the general contractor
Dialogue: 0,0:07:06.88,0:07:09.50,Default,,0000,0000,0000,,pick just one company
Dialogue: 0,0:07:09.52,0:07:10.74,Default,,0000,0000,0000,,to do all the work,
Dialogue: 0,0:07:10.76,0:07:11.96,Default,,0000,0000,0000,,like, say, the architect?
Dialogue: 0,0:07:12.60,0:07:13.80,Default,,0000,0000,0000,,Because this is silly.
Dialogue: 0,0:07:14.76,0:07:17.06,Default,,0000,0000,0000,,The general contractor selects experts
Dialogue: 0,0:07:17.08,0:07:18.82,Default,,0000,0000,0000,,because it takes years
Dialogue: 0,0:07:18.84,0:07:20.58,Default,,0000,0000,0000,,to learn and master
Dialogue: 0,0:07:20.60,0:07:24.38,Default,,0000,0000,0000,,how to do each of the tasks it takes\Nto build a house or renovate a kitchen,
Dialogue: 0,0:07:24.40,0:07:26.68,Default,,0000,0000,0000,,some of them requiring special training.
Dialogue: 0,0:07:28.04,0:07:29.26,Default,,0000,0000,0000,,Think about it:
Dialogue: 0,0:07:29.28,0:07:32.72,Default,,0000,0000,0000,,Would you want your architect\Nto install your toilet?
Dialogue: 0,0:07:33.32,0:07:34.74,Default,,0000,0000,0000,,Of course not.
Dialogue: 0,0:07:34.76,0:07:37.60,Default,,0000,0000,0000,,So let's apply this process\Nto the corporate world.
Dialogue: 0,0:07:38.20,0:07:40.78,Default,,0000,0000,0000,,Companies today focus on manufacturing
Dialogue: 0,0:07:40.80,0:07:44.14,Default,,0000,0000,0000,,what they produce best\Nand most efficiently,
Dialogue: 0,0:07:44.16,0:07:46.00,Default,,0000,0000,0000,,and they trade for everything else.
Dialogue: 0,0:07:46.68,0:07:49.38,Default,,0000,0000,0000,,So this means they rely
Dialogue: 0,0:07:49.40,0:07:54.38,Default,,0000,0000,0000,,on a global, interconnected,\Ninterdependent network of manufacturers
Dialogue: 0,0:07:54.40,0:07:55.66,Default,,0000,0000,0000,,to produce these products.
Dialogue: 0,0:07:55.68,0:07:57.74,Default,,0000,0000,0000,,In fact, that network is so interconnected
Dialogue: 0,0:07:57.76,0:07:59.00,Default,,0000,0000,0000,,it's almost impossible
Dialogue: 0,0:08:00.08,0:08:03.44,Default,,0000,0000,0000,,to dismantle and produce\Nproducts in just one country.
Dialogue: 0,0:08:04.12,0:08:06.42,Default,,0000,0000,0000,,Let's take a look\Nat the interconnected web
Dialogue: 0,0:08:06.44,0:08:08.10,Default,,0000,0000,0000,,we saw a few moments ago,
Dialogue: 0,0:08:08.12,0:08:10.42,Default,,0000,0000,0000,,and let's focus on just one strand
Dialogue: 0,0:08:10.44,0:08:12.52,Default,,0000,0000,0000,,between the US and Mexico.
Dialogue: 0,0:08:14.64,0:08:17.46,Default,,0000,0000,0000,,The Wilson Institute says\Nthat shared production represents
Dialogue: 0,0:08:17.48,0:08:22.56,Default,,0000,0000,0000,,40 percent of the half a trillion dollars\Nin trade between the US and Mexico.
Dialogue: 0,0:08:23.08,0:08:25.74,Default,,0000,0000,0000,,That's about 200 billion dollars,
Dialogue: 0,0:08:25.76,0:08:28.72,Default,,0000,0000,0000,,or the same as the GDP for Portugal.
Dialogue: 0,0:08:29.72,0:08:32.26,Default,,0000,0000,0000,,So let's just imagine
Dialogue: 0,0:08:32.28,0:08:35.38,Default,,0000,0000,0000,,that the US decides to impose
Dialogue: 0,0:08:35.40,0:08:39.12,Default,,0000,0000,0000,,a 20 percent border tax\Non all imports from Mexico.
Dialogue: 0,0:08:39.84,0:08:41.06,Default,,0000,0000,0000,,OK, fine.
Dialogue: 0,0:08:41.08,0:08:45.44,Default,,0000,0000,0000,,But do you think Mexico is just\Ngoing to stand by and let that happen?
Dialogue: 0,0:08:46.12,0:08:47.82,Default,,0000,0000,0000,,No. No way.
Dialogue: 0,0:08:47.84,0:08:50.90,Default,,0000,0000,0000,,So in retaliation,\Nthey impose a similar tax
Dialogue: 0,0:08:50.92,0:08:53.76,Default,,0000,0000,0000,,on all goods being imported from the US,
Dialogue: 0,0:08:54.64,0:08:56.88,Default,,0000,0000,0000,,and a little game of tit-for-tat ensues,
Dialogue: 0,0:08:58.20,0:09:01.66,Default,,0000,0000,0000,,and 20 percent -- just imagine\Nthat 20 percent duties
Dialogue: 0,0:09:01.68,0:09:05.18,Default,,0000,0000,0000,,are added to every good,\Nproduct, product component
Dialogue: 0,0:09:05.20,0:09:07.90,Default,,0000,0000,0000,,crossing back and forth across the border,
Dialogue: 0,0:09:07.92,0:09:11.26,Default,,0000,0000,0000,,and you could be looking at more\Nthan a 40 percent increase in duties,
Dialogue: 0,0:09:11.28,0:09:13.04,Default,,0000,0000,0000,,or 80 billion dollars.
Dialogue: 0,0:09:13.80,0:09:15.58,Default,,0000,0000,0000,,Now, don't kid yourself,
Dialogue: 0,0:09:15.60,0:09:17.90,Default,,0000,0000,0000,,these costs are going to be passed along
Dialogue: 0,0:09:17.92,0:09:20.16,Default,,0000,0000,0000,,to you and to me.
Dialogue: 0,0:09:21.96,0:09:27.22,Default,,0000,0000,0000,,Now, let's think about what impact\Nthat might have on some of the products,
Dialogue: 0,0:09:27.24,0:09:29.96,Default,,0000,0000,0000,,or the prices of the products,\Nthat we buy every day.
Dialogue: 0,0:09:30.60,0:09:35.02,Default,,0000,0000,0000,,So if a 30 percent increase in duties\Nwere actually passed along,
Dialogue: 0,0:09:35.04,0:09:38.68,Default,,0000,0000,0000,,we would be looking at some\Npretty important increases in prices.
Dialogue: 0,0:09:39.64,0:09:43.44,Default,,0000,0000,0000,,A Lincoln MKZ would go\Nfrom 37,000 dollars to 48,000.
Dialogue: 0,0:09:44.76,0:09:48.12,Default,,0000,0000,0000,,And the price of a Sharp 60-inch HDTV
Dialogue: 0,0:09:48.80,0:09:54.02,Default,,0000,0000,0000,,would go from 898 dollars\Nto 1,167 dollars.
Dialogue: 0,0:09:54.04,0:09:58.18,Default,,0000,0000,0000,,And the price of a 16-ounce jar\Nof CVS skin moisturizer
Dialogue: 0,0:09:58.20,0:10:01.64,Default,,0000,0000,0000,,would go from 13 dollars to 17 dollars.
Dialogue: 0,0:10:02.24,0:10:07.62,Default,,0000,0000,0000,,Now, remember, this is only looking\Nat one strand of the production chain
Dialogue: 0,0:10:07.64,0:10:09.02,Default,,0000,0000,0000,,between the US and Mexico,
Dialogue: 0,0:10:09.04,0:10:11.84,Default,,0000,0000,0000,,so multiply this out\Nacross all of the strands.
Dialogue: 0,0:10:12.60,0:10:14.26,Default,,0000,0000,0000,,The impact could be considerable.
Dialogue: 0,0:10:14.28,0:10:16.94,Default,,0000,0000,0000,,Now, just think about this:
Dialogue: 0,0:10:16.96,0:10:20.20,Default,,0000,0000,0000,,even if we were able\Nto dismantle this network
Dialogue: 0,0:10:21.48,0:10:24.70,Default,,0000,0000,0000,,and produce products in just one country,
Dialogue: 0,0:10:24.72,0:10:27.22,Default,,0000,0000,0000,,which by the way is easier said than done,
Dialogue: 0,0:10:27.24,0:10:30.66,Default,,0000,0000,0000,,we would still only\Nbe saving or protecting
Dialogue: 0,0:10:30.68,0:10:33.58,Default,,0000,0000,0000,,one out of 10 lost manufacturing jobs.
Dialogue: 0,0:10:33.60,0:10:35.64,Default,,0000,0000,0000,,That's right, because remember,
Dialogue: 0,0:10:37.40,0:10:40.06,Default,,0000,0000,0000,,most of those jobs, 87 percent,
Dialogue: 0,0:10:40.08,0:10:42.76,Default,,0000,0000,0000,,were lost due to improvements\Nin our own productivity.
Dialogue: 0,0:10:43.52,0:10:46.68,Default,,0000,0000,0000,,And unfortunately,\Nthose jobs, they're gone for good.
Dialogue: 0,0:10:48.16,0:10:49.72,Default,,0000,0000,0000,,So the real question is,
Dialogue: 0,0:10:50.52,0:10:52.86,Default,,0000,0000,0000,,does it make sense for us\Nto drive up prices
Dialogue: 0,0:10:52.88,0:10:58.40,Default,,0000,0000,0000,,to the point where many of us can't afford\Nthe basic goods we use every day
Dialogue: 0,0:10:59.28,0:11:01.50,Default,,0000,0000,0000,,for the purpose of saving a job
Dialogue: 0,0:11:01.52,0:11:04.00,Default,,0000,0000,0000,,that might be eliminated\Nin a couple of years anyway?
Dialogue: 0,0:11:06.04,0:11:08.06,Default,,0000,0000,0000,,The reality is that shared production
Dialogue: 0,0:11:08.08,0:11:11.74,Default,,0000,0000,0000,,allows us to manufacture\Nhigher quality products
Dialogue: 0,0:11:11.76,0:11:12.98,Default,,0000,0000,0000,,at lower costs.
Dialogue: 0,0:11:13.00,0:11:14.20,Default,,0000,0000,0000,,It's that simple.
Dialogue: 0,0:11:14.96,0:11:16.82,Default,,0000,0000,0000,,It allows us to get more
Dialogue: 0,0:11:16.84,0:11:19.26,Default,,0000,0000,0000,,out of the limited resources\Nand expertise we have
Dialogue: 0,0:11:19.28,0:11:22.48,Default,,0000,0000,0000,,and at the same time\Nbenefit from lower prices.
Dialogue: 0,0:11:23.56,0:11:25.62,Default,,0000,0000,0000,,It's really important to remember
Dialogue: 0,0:11:25.64,0:11:28.46,Default,,0000,0000,0000,,that for shared production\Nto be effective,
Dialogue: 0,0:11:28.48,0:11:33.90,Default,,0000,0000,0000,,it relies on efficient cross-border\Nmovement of raw materials,
Dialogue: 0,0:11:33.92,0:11:35.88,Default,,0000,0000,0000,,components and finished products.
Dialogue: 0,0:11:36.96,0:11:38.16,Default,,0000,0000,0000,,So remember this:
Dialogue: 0,0:11:39.12,0:11:43.18,Default,,0000,0000,0000,,the next time you're hearing somebody\Ntry to sell you on the idea
Dialogue: 0,0:11:43.20,0:11:45.52,Default,,0000,0000,0000,,that protectionism is a good deal,
Dialogue: 0,0:11:46.44,0:11:48.02,Default,,0000,0000,0000,,it's just not.
Dialogue: 0,0:11:48.04,0:11:49.26,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:11:49.28,0:11:52.04,Default,,0000,0000,0000,,(Applause)