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A sagacious voice from the past is being evoked these days by media outlets left, right and center: the voice of Ronald Reagan, 40th president of the United States, two-term governor of California and Republican icon.
In a 1989 radio address from the Oval Office, Reagan came down hard on the notion that America should be playing hardball with other nations by imposing steep tariffs, which he said would lead to trade wars crippling for the world economy.
He touted the example of Harley-Davidson, the motorcycle manufacturer, who figured out how to cut costs and be ultra-creative in order to remain competitive internationally. Some legislators had suggested tariffs against Japan and Germany to ֱprotectֱ Harley-Davidson from too much competition.
Turned out, Harley-Davidson didnֱt need protection. The absence of tariffs spurred it to make the tough, and right, decisions to thrive in global markets.
In Reaganֱs own words: ֱIt was being said that Harley-Davidson ... was running out of gas and sputtering to a stop. Well, one of the worst mistakes anybody can make is to bet against Americans.
ֱAt Harley-Davidson the workers and management got together and decided not only to compete but to win. With unity of purpose and a commitment to excellence, they cut the hours of work needed to make a cycle by one-third, and their inventory was reduced by two-thirds.
ֱAnd they tripled the number of defect-free machines they shipped. Productivity improved. Prices were kept under control; on some bikes, they even lowered prices.
ֱWhile doing this, they expanded their product line from three models, over time, to 24.ֱ
Amazingly, Harley-Davidson even appealed to Washington to remove the special tariff put on to protect them so that, in Reaganֱs words, ֱthey could meet their competition head on.ֱ Gutsy, no?
Reagan rolled on in his trademark no-nonsense fashion:
ֱWhen you hear talk about a tough trade bill, remember that being tough on trade and commerce, the lifeblood of the economy, will have the worst possible consequences for the consumer and the American worker.
ֱIt will drive up the price of much of what we buy. Worse than that, it could drag us into an economy-destroying trade war.
ֱThe government should work to create the conditions in which fair trade will flourish. Foster the growth of two-way trade. Not try to put up roadblocks. (It should try) to open foreign markets, not close our own.ֱ
Reagan, in 1987, had made a personal visit to the Harley-Davidson plant in York, Pennsylvania, and told managers and workers there: ֱItֱs time to gun the engines, not put on the brakes.ֱ
Reaganֱs wisdom is hyper-relevant right now. His radio address should be required reading for President Donald Trump and his advisers, who are sparking trade wars by putting high tariffs on goods from China, Canada, and EU countries.
That 1989 talk is relevant too for congressmembers of both parties who should be weighing in on trade policy instead of sitting back and letting Trump call all the shots in direct opposition to the common sense of Ronald Reagan.
John Patrick Grace writes from his home in eastern Cabell County. He is a former Associated Press reporter, editor and foreign correspondent and currently a book editor and writing coach. His email is publishersplace@gmail.com.
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