“With its survival, at least in the short term, so dependent on public assistance, it seems fair to ask, do we need a domestic auto industry? Many American manufacturing industries, like textiles and electronics, long ago moved to other producing countries. Why is the auto industry different?”
Four economists respond to the question. It’s more interesting than it sounds.
Excellent link! Good snag.
One thing overlooked in the discussion was that foreign automakers didn’t move into Detroit on purpose, and they don’t have the legacy costs or high wages that our Big Three have.
So very soon now Big Three autoworker jobs may not be the high wage jobs they used to be.
And military vehicles are a specious argument, as they are highly specialized today – the day when the President grabbed the phone and rolled a factory to military trucks are long over.
What I didn’t hear mentioned that could have used some attention is spin-off industries. While Detroit may not be a haven of innovation, the people who leave with specialized knowledge might be.