Report Card for Donald Trump

[David Horn]

(12-22-2016, 11:13 PM)Warren Dew Wrote: What we saw in the 1970s was that without the spur of international competition, US industries became inefficient and their products dropped in quality while increasing in price.  That's how the Japanese got a foothold in our auto market, of which they own a substantial fraction now.  In the medium to long run, you need competition to maintain your edge.

This is true, though the misevaluation of the Yen had a lot to do with the expanse of the damage.  Our auto industry deserved to get its butt kicked, and it did.  Our consumer electronics industry, not so much. 

Purposely undervaluing their currency is the same trick the Chinese applied in the '90s and '00s, only the purpose was different.  Of course, the mighty captains of industry were more than happy to export jobs if it helped their bottom lines (and bonuses).  We adjusted to the Japanese onslaught, and the same will happen with the Chinese. Of course, the little people who lost in the initial rounds will never get their turn at the trough.  Those spots are reserved.