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In the past it has been a path to real success, and consumers ended up paying more because of it. One example would be the Japanese electronics industry in the
by notauser 16y ago
In the past it has been a path to real success, and consumers ended up paying more because of it.
One example would be the Japanese electronics industry in the 60s-70s, which was subsidized until it broke the back of US competition. It then reaped a good profit for a long time before other countries caught up.
(I doubt that GM could do this, at least not without a lot more money. But examples of "successful" subsidization programs to strategically promote industry do exist.)
- stretchwithme 16y agoI think they also had lower wages, statistical process control, concurrent engineering, the Taguchi method, the five why's, just in time manufacturing and many other innovations going for them as well. You can't say their success was due to subsidies without eliminating the effects of all of these other things.