December 17, 2017

Whirlpool Has Washington in a Spin Cycle

A household appliance will be the next steppingstone on America’s path to restored greatness.

A household appliance will be the next steppingstone on America’s path to restored greatness. The government is poised to punish many Americans, in the name of protecting a few of them, because, in the government’s opinion, too many of them are choosing to buy foreign-made washing machines for no better reason than that the buyers think they are better. If you are wondering why the government is squandering its dwindling prestige by having opinions about such things, you have not been paying attention to Whirlpool’s demonstration that it is more adept at manipulating Washington than it is at making washing machines.

In 2006, when Whirlpool was paying $1.7 billion to buy its largest competitor, Maytag, federal regulators fretted that this would give the company too much market power. Whirlpool said: Fear not, competition from foreign manufacturers such as South Korea’s Samsung and LG will keep us sharp and benefit American consumers. Now, however, Whirlpool, which is weary of competition, has persuaded the U.S. International Trade Commission to rule that Samsung and LG should be reproached for what, 11 years ago, Whirlpool said it welcomed: competition.

The U.S. market for washing machines has grown 35 percent in just five years. Whirlpool’s share of this market, although not the 70 percent it was in 2006, is still more than Samsung’s and LG’s combined 35 percent. In this happy circumstance, Whirlpool is profitable. It would, however, like to be more so, and it will be if the president accedes to the commission’s unanimous recommendation and imposes a “tariff-rate quota.”

This is a tax, paid by American consumers, on imports that exceed a certain quantity that, in the government’s opinion (formed with the assistance of domestic manufacturers), is excessive. If you are wondering why the government has nothing better to do than have opinions about such things, you have not been paying attention to modern government’s vast diligence on our behalf.

The tariff/tax, which is designed to limit the choices of, and increase the prices paid by, American consumers would be 50 percent on all imported machines, after the first 1.2 million. U.S. customers caused the importation of about 3 million Samsung and LG washers in 2016.

Back in the day, Henry Ford said people could have the Model T in any color they wanted, as long as they wanted black. General Motors’ ascent was helped by offering color choices. Until recently, purchasers of washing machines had to want white ones. And ones that loaded in the top, and signaled the end of a cycle with buzzers. Then came imports in various colors, that loaded in the front, had chimes instead of buzzers, and other features.

Competition increased, and so did Whirlpool’s reliance on the government, which in 2012 imposed duties on washing machines imported from South Korea and Mexico. Samsung and LG responded rationally, by what protectionists stigmatize as “country hopping,” moving some production to China, then Vietnam and Thailand. And now to the United States. Samsung and LG have announced plans to become domestic manufacturers. Samsung will open a manufacturing plant, with approximately 1,000 employees, in Newberry, South Carolina. LG’s plant will be near Clarksville, Tennessee.

Before Whirlpool became dependent on government, it depended on Sears, which in the 1920s threw a financial lifeline to a struggling appliance manufacturer, Upton Machine Co., that became Whirlpool. According to The Wall Street Journal, as recently as 2002, when Sears sold 40 percent of the major appliances bought in America, sales through Sears generated about a fifth of Whirlpool’s revenues. In October, Sears announced that it would stop selling Whirlpool brand products because Whirlpool is powerful enough to make pricing demands that “would have prohibited us from” selling those products “at a reasonable price.”

Sears is not what it was just 15 years ago, and is a shadow of what it was in the 1960s when its sales were almost 1 percent of U.S. GDP. Sears has been prostrated not by perfidious foreigners but by America’s efficient “big box” retailers (Walmart, Home Depot, Best Buy, Lowe’s, etc.) and by Amazon. The real villains, however, are American consumers, with their persnickety search for high quality and low prices.

The president has until February to exercise his vast discretion regarding things like washing machine imports. If you are wondering how presidents came to have such discretion to impose taxation on American consumers, you have not been paying attention to Congress’ creation, by improperly delegated powers, of the imperial presidency.

© 2017, Washington Post Writers Group

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the Tunnel to Towers Foundation, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.