In a new article for CounterPunch, I show that, by failing to blow the whistle on protectionism in key foreign markets, the American press shares blame for Detroit’s implosion.
For decades East Asian competition has played a controversial role in the decline of the American car industry. Both Japan and Korea have long been accused of unfair trade and closed markets. For their part Japanese and Korean officials have argued that their markets are open and that an incompetent and heedless Detroit doesn’t make the sort of cars their consumers want.
In all the charges and countercharges, little of the remarkable truth of Detroit’s trade problems has come out. To see how well—or rather how badly—you understand the background, try this quiz:
1. What was the Detroit companies’ share of the Japanese market in 1930? (a) About 90 percent. (b) About 20 percent. (c) Less than 4 percent.
2. How many models do the Detroit corporations currently make with the steering wheel on the right (the standard configuration for Japan)? (a) More than 40. (b) 12. (c) 3.
3. What was the combined share of all foreign makers’ marques – American, European, and Japanese – in the Korean car market in the last decade? (a) Less than 2 percent. (b) Around 15 percent. (c) More than 70 percent.
The correct answer in each case is (a).
If you flunked, don’t feel bad. Just cancel your newspaper subscription.