Alan, I think we basicly agree on what happened to the big three in the 70's. You are trying to put a larger share of blame on the UAW, but I still think that management takes the lion's share of the blame.
And now that same assault is occurring again from German, Japanese and Korean automakers. This time the game is all about models, features and quality. It's less about the price. People will pay a little more if you offer what they want. I'll let the SUV market speak to that.
As noted above, it was both management and labor that killed the goose that laid the golden egg. Management has tried to improve, but IMO still doesn't get it. Have you followed the quality problems Ford has had in recent years? Chrysler makes products noted for transmission problems (I owned one). Just yesterday on Car Talk, Tom and Ray warned a woman away from a Jeep Cherokee she was yearning for. Why is it that in 2004, the US auto industry is still struggling with quality issues?
Again problems of quality are rarely attributed to the folks that assemble the parts. Quality starts with the design. Chrysler's crappy transmissions are due to poor engineering design. Jeep's have long been a problem child. Orphaned from Willys to Kaiser to AMC to Chrysler...it's never been a real profitable unit, but there is a niche market for the vehicles...as you say the woman yearned for a Jeep. Everyone I know that has had a Jeep has had problems with them.
The global economy is changing. Some are benefiting, some are not. Again, what do you suggest?
I'm not sure what the long term solution is. Short term, I'd like to see some movement to protecting jobs here in the US. This can be done by tax breaks for manufacturing done here, or other protectionist means.
I know that doesn't fit the free trade model, but neither does the existence of low paid workers in other countries who don't have the benefits of American workers. The playing field is already tilted...and manufacturing jobs are slipping away.
Mean while the trade deficit balloons. Jobs and capital are both moving off shore. I think of our economy as a huge reservoir. The water level in our reservoir is higher than much of the world. It's no trick to stick in a pipe and start drawing off the water.
But do we want our economy to drop to the level of the lowest common denominator? I think not. We need to plug up the pipes that are draining us, at least most of them, or the reservoir will go dry.
Ther's other consequences of slipping into a service economy. We lose that expertise in design, engineering and manufacturing. These are essential skills to maintaining defense and national security.
When you lose jobs you also lose the need to have a trained or educated work force. It's a downward spiral that will eventually lead to the end of our nation being a super power.
We need to be the premier designer and manufacturer of goods in the world. This is way more important that knocking Saddam off his throne. The throne that we bought and paid for in the first place.
We need more emphasis on education in the country. We are falling behind in math and science. We need to lead the world in High Tech, Bio tech, energy sciences and others.
I'm afraid that Rome is burning, and Bush is fiddling.
Orca |
