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Detroit's decline is a product of two main factors: 1. Protectionism 2. Recalcitrant unions Protectionism from the tariffs like the Chicken Tax made the US a

Detroit's decline is a product of two main factors: 1. Protectionism 2. Recalcitrant unions Protectionism from the tariffs like the Chicken Tax made the US auto industry easily profitable for decades. This meant the industry didn't evolve like the japanese/korean/european counterparts. They could profit even with substandard cars. Unions aren't necessarily bad, on their own. Arguably, the USA needs more unions right now. But they can worsen problems of inefficiency by reducing the adaptability of the org.

actionfromafar 3y ago
I'd go so far as to say, that recalcitrant unions are more of a symptom of protectionism than a separate thing.
xg15 3y ago
I think a good counter example is the pivot of the Ruhr area from a mining and heavy industries hub to an economy centered on tech and services. It happened despite strong union presence in the old sectors. I think one of the deciding factors was a strong social safety net and an active strategy of the state to bring over the employees into the new sectors and don't just leave them stranded with obsolete skills. https://en.wikipedia.org/wiki/Ruhr#Postwar_period https://en.wikipedia.org/wiki/Ruhr#Postwar_period https://www.ruhr-guide.de/freizeit/industriekultur/das-ruhrgebiet-die-entwicklung-und-der-strukturwandel/21960,0,0.html https://www.ruhr-guide.de/freizeit/industriekultur/das-ruhrg... (Couldn't find a good article in english unfortunately)
nradov 3y ago
Detroit's decline had as much to do with shitty product designs as with protectionism and unions. It wasn't union members who designed the Ford Pinto or Oldsmobile diesel engines.
- VHRanger 3y ago
  Those designs are the result of the lack of competitive pressure coming from the fact that the Detroit automakers effectively had the US market captured.
  - nradov 3y ago
    I am not convinced that protectionism was the primary cause. Japan had extensive protectionism for their domestic auto industry in the 1970s but still managed to design generally superior products. I think US auto company managers, designers, and engineers were just generally lazy and incompetent.
    - VHRanger 3y ago
      Japan wasn't nearly as large a source of demand as the USA for cars in that period.

actionfromafar 3y ago

I'd go so far as to say, that recalcitrant unions are more of a symptom of protectionism than a separate thing.

xg15 3y ago

I think a good counter example is the pivot of the Ruhr area from a mining and heavy industries hub to an economy centered on tech and services. It happened despite strong union presence in the old sectors. I think one of the deciding factors was a strong social safety net and an active strategy of the state to bring over the employees into the new sectors and don't just leave them stranded with obsolete skills. https://en.wikipedia.org/wiki/Ruhr#Postwar_period https://en.wikipedia.org/wiki/Ruhr#Postwar_period https://www.ruhr-guide.de/freizeit/industriekultur/das-ruhrgebiet-die-entwicklung-und-der-strukturwandel/21960,0,0.html https://www.ruhr-guide.de/freizeit/industriekultur/das-ruhrg... (Couldn't find a good article in english unfortunately)

nradov 3y ago

Detroit's decline had as much to do with shitty product designs as with protectionism and unions. It wasn't union members who designed the Ford Pinto or Oldsmobile diesel engines.

VHRanger 3y ago
Those designs are the result of the lack of competitive pressure coming from the fact that the Detroit automakers effectively had the US market captured.
- nradov 3y ago
  I am not convinced that protectionism was the primary cause. Japan had extensive protectionism for their domestic auto industry in the 1970s but still managed to design generally superior products. I think US auto company managers, designers, and engineers were just generally lazy and incompetent.
  - VHRanger 3y ago
    Japan wasn't nearly as large a source of demand as the USA for cars in that period.