Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: ijcr
The US government actually incentivized Ford to build plants in Puerto Rico to stimulate economic development and it failed pretty miserably. I wonder why it would work in Detroit, but not in San Juan?
3 posted on 02/23/2005 10:21:50 AM PST by .cnI redruM ("I think that I have a fairly good understanding of what constitutes insider information," -Soros)
[ Post Reply | Private Reply | To 2 | View Replies ]


To: .cnI redruM

Your example is shared currently by the dissipation of Toyota assembly plants across the US. No one in these plants manufactures anything, they just put parts together from a central manufacturing area.

This is exactly what happened in Puerto Rico.

Because these plants are self sustaining from parts made in mother plants, there is no requirement or opportunity for smaller companies to move to the area and manufacture the parts neccessary for the finished goods.Which is why these assembly plants only attract service industries.

Moreover,the opposite occurred in the hay days of Detroit, the car companies needed supplies of headlamp bulbs,nuts and bolts,tires,dynamos,windshields,etc,etc. These components
were manufactured locally by smaller companies.


4 posted on 02/23/2005 11:20:16 AM PST by ijcr (Some mornings, it's just not worth chewing through the leather straps.)
[ Post Reply | Private Reply | To 3 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson