Posted on 12/28/2008 4:26:21 PM PST by Cringing Negativism Network
(...)
By traditional free-trade theory, a nation should import what it does not produce from the nations that produce it most cheaply.
But in 1946, Japan produced almost no steel, no TVs and no cars. Instead of buying them from America, Tokyo subsidized its own steel, TV and auto industries for decades, and protected their market. Now, as Sony did to Philco and Dumont, Toyota, Honda and Nissan are taking down Ford, GM and Chrysler. Were the Japanese foolish to subsidize their industries and protect their market? Were we wise to let our TV industry be taken down, and watch our auto and steel industries driven to death's door?
To 1970, Boeing, Lockheed and McDonnell Douglas produced almost all of the world's jetliners. But rather than rely in perpetuity on Americans for passenger planes, Britain, France, Germany and Spain subsidized a socialist cartel, Airbus, that did not make a profit for 25 years and sold its planes for less than it cost to build them.
That trampled all over free-trade theory, but it did kill Lockheed and McDonnell Douglas and almost killed Boeing.
Were the Europeans foolish to create an aircraft industry and subsidize the destruction of Lockheed and McDonnell Douglas? Or were they wise to sacrifice today to capture the world's aircraft market of tomorrow?
(...)
Please see url for full article.
(Excerpt) Read more at news.yahoo.com ...
He's right on trade. He's right on the border.
And he's being proven more right, every day, in the headline news.
America is for sale.
In fact, most of America has already been sold...
Yet the fire sale continues.
Perhaps our new president can just put the whole country, up on eBay.
Sell us to the Saudis. Ought to bring enough, to pay for 300 million burkas.
Hope you are prepared for the coming abuse (hehehehe)
You are right, of course, about PJB
Undoubtedly, my life's goal has been to subsidize, with my tax dollars, UAW workers with compensation packages of 78 bucks an hour. Pat and those like him make that goal attainable.
Thanks Pat!
You mean UAW Pat?
Great read.
Move in with Pat then
I would much prefer to have Japanese or European taxpayers pay for our cars.
That is simply not correct, and would not be stated by anybody who has ever read a basic economics text. When nations trade, they each produce what they have a comparative advantage in. Comparative advantage and "cheapness" are not the same thing.
If anyone doesn't understand this, just google "comparative advantage" and become enlightened.
Yeah, I posted “Great read” before I read the whole article. By propping up our own failing industries whom produce inferior products we’re basically saying it’s okay to continue producing shitty cars and what not. Personally, I drive a Toyota would never trade it for a Ford, GM, or Chrysler POS.
Pat is right about abortion, gay demands, immigration, foreign entanglements bring war, deficit trade deals bring unemployment and Toyota Republicans sold out the American family worker.
Sometimes that isn't the most "efficient" thing to do from a purely mechanical point of view, but then "free trade" -- which should be re-labeled merely "foreign trade" -- depends on simplistic analyses which are far more mechanistic and devoid of political / cultural considerations.
It is clear from the history of the auto industry in the last 30 years that foreign competitors designed and built better machines. That they did so with design, engineering and manufacturing talent in this country is not so well known. What they actually ended up proving was that the management in Detroit is perhaps beyond help.
The real bottom line for GM in particular can be summed up with a couple of points:
- They created a corporate culture of go-along to get-along "yes men" - anyone who sticks out is immediately hammered into compliance or forced out. I personally observed this there, and it still amazes me how ruthless it was.
- They believe that their problems are due to bad marketing, not bad design and manufacture. Rather then fix their vehicles, they simply intensify their marketing campaigns - something that is going on right now (you've seen the "Red Tag" sale ads without doubt). This is fundamental to their customer contempt: to them, it's always assumed that you can eventually con the rubes into signing.
Another former GM'er and I spent the better part of 4 hours the other day discussing all of this, and these were the two things that really stand out. If there is one thing that the foreign car companies and their sponsor governments did (make no mistake, those are subsidized corporations), it was to kill that culture in Detroit. Recall that at the beginning of the "free trade" resurgence in the 80's, GM was the chief cheerleader. They really thought they would win.
But that's because at GM, if you say something different....you get stepped on.
“That is simply not correct, and would not be stated by anybody who has ever read a basic economics text.”
-
Seems to this poster, ‘basic economics texts’ are a bit like lawyers.
Nations do not necessarily produce what they have a comparative advantage in - it depends on the leadership and wisdom driving trade decisions in each country.
America has for a long time, been led down the path you describe. A few people have become very wealthy by demolishing entire segments of our once-historic manufacturing base, and sending strategic capabilities to communists and people who seek our destruction.
Those few people have gotten rich, by selling us out.
There’s a word for that. And it’s not “economics”.
So soundly repudiated by the American people, Pat had to be right! from the beginning, as they are nearly always wrong.
Whoa. Buchanan said something that is simply incorrect. Everything else you say may or may not be true, but Buchanan has prefaced the entire piece with a false straw man.
That is an incorrect statement. Everything else said by him or you might be true, but that is a factually incorrect statement.
:)
Fair point. I tend to get a bit worked up about this topic.
In this poster’s opinion, the “free trade” lobby of the GOP just seems so much like the “open borders” lobby, which seems so much like the “RINO” lobby, and seems to be the problem. Not just with the Republican Party, but with America. We’re going the wrong way!!
I say, we fix that problem.
We’re going the wrong way. We should turn... to the right.
America. First! Not “Walmart First”. Not “Exxon First”.
America First.
Selling our jobs, our factories and our future to communists, and sending all our money to terorist-supporting oil despots, is not conservative.
And it’s CERTAINLY not a good idea.
If the GOP doesn’t get in front of this parade, it will be trampled.
The problem is that Free Trade in textbook theory is a good thing, but as with all economics, the textbooks occur as in a laboratory with perfect conditions.. the real world is not perfect conditions, so theory can’t be applied as directly.
You’re right. Pat has been right and still is.
Well, yes.
How is it, an economic theory was allowed to so subvert the national interests of history’s most incredible manufacturing superpower, that in just one generation - we have frittered history’s biggest fortune?
It’s all gone. We spent all our money. We sold our factories. We outsourced our jobs. We’ve even sold intellectual property and knowledge - to countries founded on the Communist Manifesto - and the Koran.
For what??
And when do we turn away from the abyss, we are speeding toward?
And why isn’t the GOP doing something about this catastrophe?
What is it, which has so immobilized the party, which should be leading us to salvation?
They’re mute. Dumb. Stationary. Unable to speak.
On the sidelines. Doing ... NOTHING. Sitting on their hands, afraid of their own shadow.
How else is it possible, a do-nothing, unknown junior Senator with no accompishments, no historical record, and questionable background - is now our POTUS?
Because the GOP has completely. Profoundly. Utterly dropped every ball in the stadium.
Repeatedly!
/frustrated GOP voter rant off.
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