I’m not an expert on economics. It’s not really my main focus right now. However let me ask you a question.
If America made slightly better and slightly cheaper cars than Japan, do you really think it would benefit Japan to allow the sale of those cars in their country which would destroy their car industry and cost Japan tens of thousands of good well paying jobs?
Thanks very much for your thoughtful reply.
>>If America made slightly better and slightly cheaper cars than Japan, do you really think it would benefit Japan to allow the sale of those cars in their country which would destroy their car industry and cost Japan tens of thousands of good well paying jobs?
Japan would have a big competitive advantage in transportation costs to begin with. And if we look at their economy as a whole, the question is: If we (Japan) can greatly decrease the cost of transportation, will that help us compete in other areas? What will it do to our economy as a whole?
Looking at it from the U.S. view, if the cost of transportation greatly increased for individuals and businesses, would this improve the economy? No. And that is what a tariff on auto products from Japan would do.
Would it benefit U.S. auto manufacturers to increase the price of their competitors? Yes. At the cost of the rest of America. It’s what government and tariffs do: tax the many to benefit the few.
Second issue is: why do Americans *want* to buy Japanese cars instead of GM? Because they are more reliable - even though they are more expensive than Chevrolets.
What would change this? Better quality autos from G.M. Would increasing the price of GM’s competitors accomplish this? No, it would encourage them to do the opposite.
Government control doesn’t improve the economy. It does not improve our competitiveness or the quality of our products.
Rather than blame others, we really need to ask: Why doesn’t GM produce higher quality products? Why are their costs so high?
I think we know the answers.
I think it is important that Americans understand that economic freedom is essential to liberty. That private property and free enterprise are what distinguishes us from socialism and totalitarianism.
This freedom to choose in the marketplace has been a foundation of the conservative movement since its beginning. Milton Friedman and Thomas Sowell were the main advocates and communicators of conservative economic principles.
I understand that economics is not a high priority or focus for you now. But, if you ever have the time to watch a bit, Friedman’s “Free to Choose” series is engaging and very well done:
http://www.freetochoose.tv/ftc80.php