Lots of history in this debate, most people pick one little piece and hang their whole argument on it.
Facts that hurt the US auto industry Outrageous labor rates due to union contracts. Union contracts defined by the NLRB ..USA government. Poor quality of products Free markets..not fair markets..They can come to the USA but we cannot go to their market Misunderstanding of the true job loss impact on the US economy.
First, understand that an Assembly plant is only about 10% of a vehicle. What we have lost is all the white collar design and engineering jobs as well as the administrative jobs. That is why our college educated kids are working at starbucks pouring coffee.
Second, auto manufacturing provided millions of low wage jobs. Here in Kentucky dozens of little parts factories in rural cummunities are closed. Those were $10/hr jobs, but a decent living. Those people have no other opportunity and many are now on welfare. The foreign manufacturers get most of their parts overseas.
Third, all those admittedly overpaid UAW auto workers paid lots of taxes. Now they are not...instead they are on unemployment.adds to the Govt. Deficit?
Fourth...I have heard many folks complain about the US auto company bailout...It is not right for our government to bail out failing companies?...Then why is it all right for Tennessee state government to give foreign auto companies $288,000/per job $$$$billions of tax breaks to VW. That is effectively 10 years of free labor. Hard for the US companies to compete with that.
Finally, Japanese tax on US rice (higher quality) is 700%, but can't really sell USA vehicles in Japan due to silly reguations. The tax on a USA car in Korea is 75% of the window sticker. Korea bans US beef...mad cow.
It is really complicated situation and our states partnering with foreign companies to put Americans out of work seems a bit unAmerican.
You can bet the Japanese government would not allow the Osaka Prefecture to partner with an American company with the goal of putting japanese workers in Tokyo out of a job.
The American auto industry is a text book example of 40 Years of a government without a coherent plan. Many of our economies current financial problems are due to foolish and short sighted government policies.
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