The policies that ruined the auto industry

Detroit Free Press
by Barry C. Lynn

12/01/08

A lot of people are angry at the Detroit Three automakers, including many members of Congress. And why not? GM, 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. … The environment of law in which these companies had to operate in recent decades all but guaranteed their destruction. So many factors work against America’s manufacturers today — tax policies, monetary policy, the structure of metals markets — that it’s hard to figure out what to fix first...

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Informant: Thomas L. Knapp



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