The policies that ruined the auto industry
By BARRY C. LYNN • December 1, 2008GM, Ford and Chrysler seem still too bloated and old-fashioned, their workers too pampered. For too long the carmakers have failed to design and bring to market the smaller and more fuel efficient vehicles we now want to buy. Yet it is important to put the blame where it really belongs, not on management or labor, but on Congress.
Viewed over the long haul, the all but complete bankrupting of the Big Three is a stunning event. Not long ago the American auto industry was the greatest manufacturing complex in the world. Had a competitor nation consciously intended to destroy this system the result today would surely count as one of history’s great coups. Yet no strategist in Tokyo, Brussels or Beijing cooked up this blitzing of Detroit. Rather it was the product of a set of incoherent policies made right here in America. The environment of law in which these companies had to operate in recent decades all but guaranteed their destruction.
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