Is this a beautiful illustration of why American should never become protectionistic and should embrace the new global economy no matter how painful? It looks like to me we have destroyed our commercial maritime sector with protectionistic measures: http://www.nytimes.com/2007/01/02/opinion/02perry.html?_r=1&oref=slogin When will we ever learn that you can't win through non-competition?
"When will we ever learn that you can't win through non-competition?" Tell that to the japanese. Manipulate the currency and wipe out the competiton. RIP GM and Ford, take your spots next to electronics industry of yesteryear.
Imo the Japanese won because they made a MUCH superior car - with a few exceptions such as the Mustang. To me it's that simple. No currency manipulation will help in the medium term.
The American auto manufacturers only have themselves to blame. Not only did they continue to lag in terms of quality, but they also failed to make aesthetically pleasing cars. Their customer base is dying off because the younger generations do not find their designs cosmetically apealing.
You might also tell that to the Indian computer industry, which even Tom "The World is Flat" Friedman recognized as owing its existence to policies to protect it from IBM and other behemoths.
Interesting article. Whenever you implement protections onto a sector of the economy you are usually protecting them from consumers. Since you are acknowledging that if the consumers had the freedom to choose the best product, they would choose the foreign one. Best way to deal with this problem, delete all borders, that way there are no foreigners. On another thought regarding the shipping industry... I wonder if we are going to say the same about airlines a few years from now, as many of them move their hubs out of the US and into cheaper, and friendlier airports.
For the consumer that would be good - I agree. However, I believe it is unlikely for the foreseeable future. And I think that's good: I don't want Brussels or third world thugs deciding my future...
Now you have me curious with this one. Southwest and a few other carriers built an empire with very cheap flights based on certain US airports. In contrast, I don't see cheap flights or carriers into any other country in the world. Do other countries really offer lower terminal costs for the airlines??