redneckford - Japan has a current account surplus of 100 billion dollars. S. Korea has a 30 or so billion dollar current account surplus. This seems to be where many CUT imports are built.
How is the USA subsidizing them in anyway?
The CAW union boss I was telling you about earlier was also arguing that the reason for the demise of the big 3 was because Japan's market wasn't sufficiently open enough - presumably because he believes that the Japanese are eager to sell their Toyotas, Nissans and buy Humvees.
I do not argue that the fact that some tarriff barriers still exist distorts the benefits of free trade. However, is is a long long shot away from why manufacturing is shifting away from the USA.
Back in the 80s and early 90s the big three used the argument that the imports built elsewhere where labour was cheaper and people worked 100 hrs a week barefoot. Thats why they were losing market share. Now they are building right here in N.America - paying similar wages and benefits.
The real blame lies with management and the lack of strategic thinking on the part of these companies. Unions and the trade barriers, while they exist, have a much smaller impact.
I do also (slightly) blame the buyer who buys their product knowing that it is inferior simply in order to 'support' the product simply because it is local, and the government that throws business a corporate welfare bone. I understand the buyers sentiment in wanting to support what his friends product. We would not be human if we were not sensitive to the plight of those around us whose jobs were at risk. But ... I cannot forgive the sentiment of the government and the taxpayer when the choose to reward inferior companies. You don't see businesses that are doing well on their own in the corporate welfare line asking for a bailout. The governments job should be to bear the bigger picture in mind.
I do agree with you that a fantastic product - CUT or car can be made in the American and N. America. You can't do it however if mediocrity is rewarded just because it is local.