tag:blogger.com,1999:blog-2761684730989137546.post8654367254892524000..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Excellent article on how foreign automakers used policy to achieve "comparative advantage"mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2761684730989137546.post-91367752877069159722008-12-15T09:11:00.000-05:002008-12-15T09:11:00.000-05:00That's right, but they won't because it is all abo...That's right, but they won't because it is all about union busting. The benefits to workers in the South from these foreign plants have been little. Per capita earnings of these states are among the lowest in the nation. Achieving a competitive advantage is all about supressing the living standard of your residents, either by wage destruction or currency manipulation. On a broader scale it is being applied to all the U.S. right now with policy designed to weaken the dollar in order to achieve export "competitiveness."mike normanhttps://www.blogger.com/profile/03296006882513340747noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-67947866458811710102008-12-13T17:49:00.000-05:002008-12-13T17:49:00.000-05:00States are shoving tax breaks at most companies mo...States are shoving tax breaks at most companies moving into the state. If GM open a plant in one of those they will get tax brakes also.cuOnTheOtherSidehttps://www.blogger.com/profile/13403369469444333407noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-61878014782926789772008-12-13T17:39:00.000-05:002008-12-13T17:39:00.000-05:00BMW and Nissan hire forty-five year olds and under...BMW and Nissan hire forty-five year olds and under in order to minimize health costs. Detroit has a lot of senior people and legacy costs.<BR/><BR/><BR/>And when these people are 55 and 60 will BMW and Nissan fire them?<BR/><BR/>Are there no advantages to having an more experienced workforce?<BR/><BR/>And when BMW and Nissan is beating them with 50 and 60 year olds what will be the excuse then?cuOnTheOtherSidehttps://www.blogger.com/profile/13403369469444333407noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-57063690351701465932008-12-11T17:08:00.000-05:002008-12-11T17:08:00.000-05:00Excellent article Mike.I too am distressed by the ...Excellent article Mike.<BR/><BR/>I too am distressed by the number of people who seem to want to punish the auto makers. I don't think they understand the effect that of one of the big 3 going out of business might have on the remaining manufacturers.<BR/><BR/>I imagine many of the parts suppliers aren't vertical to one manufacturer. What happens if a major supplier to Ford gets their credit lines pulled because GM goes under? Where does Ford get its parts from? And what about the supplier to the parts manufacturer and so on. Playing with fire if you ask me. <BR/><BR/>Amazing that the auto mfgs have to show up hat in hand when the crooks on wall street who got us into this mess get whatever they need.Unknownhttps://www.blogger.com/profile/04778477553870881130noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-20337383597366791352008-12-11T16:44:00.000-05:002008-12-11T16:44:00.000-05:00Scott-But they wouldn't have gotten it because the...Scott-<BR/><BR/>But they wouldn't have gotten it because they are American companies.<BR/><BR/>I believe there is a widely held view in America that we are a nation of sinners--profligate spenders, debt-junkies and commie leeches of the government or advocates of the social cause who suck off the tit of the true "wealth creator," which is the free market.<BR/><BR/>In the eyes of most people, unfortunately, these sins must be punished. In their mind this is a fundamental requirement for absolution.<BR/><BR/>I am convinced that this view is held with a zealousness that rivals the most extreme form of religious fanaticism (Muslim extremism, for example) and those that hold it are prepared to sacrifice themselves, and innocents, in the name of this cause. (Just as Muslim extremists show no compunction in strapping a bomb on themselves or even their children, then walk onto a bus filled with innocents and blow it up.)<BR/><BR/>In the movie "The Godfather II," there is a scene in which Michael Corleone is in Cuba and is about to make a signficant investment. However, right before going ahead with the decision he witnesses something that causes him to change his mind. On his way back to the hotel he watches as a group of rebels attack the government forces and in the skirmish some of the rebels blow themselves up, killing a few members of the government forces along with them.<BR/><BR/>Later on that evening, while everyone is celebrating their new "venture" in Cuba, Corleone expresses reservation. When asked why, he recounts the events he witnessed that day and pointed out that those who are prepared to kill themselves along with innocents cannot be easily vanquished. He understood that the overthrow of the Cuban regime could not be far off when he witnessed, first hand, the unwavering resolve of those who opposed it.<BR/><BR/>The free market economic extremists in America today are of the same ilk. They are the economic equivalent of Cuba's revolutionaries or the Muslim extremists of today. The are driven by what can only be described as a religious fanaticism and their doctrine is the only true one. All others are corrupt, immoral and the preachings of the devil and the infidel.<BR/><BR/>That is why I think we cannot win this. I have become increasingly disheartened by what I see. It is useless to fight with logic, fact and reason, just as it is useless to tell fanatical Muslim extremists to sit down and "let's all just respect each other and get along."<BR/><BR/>Nothing good can come of this.mike normanhttps://www.blogger.com/profile/03296006882513340747noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-72364123187116263402008-12-11T13:40:00.000-05:002008-12-11T13:40:00.000-05:00Maybe the Big 3 would have had more success by sim...Maybe the Big 3 would have had more success by simply asking for the same treatment the foreign automakers are getting?<BR/><BR/>ScottSTFhttps://www.blogger.com/profile/16261666934714196464noreply@blogger.com