Detroit vs. Japan: Automotive Industry


So what is really the problem with the car companies? First, the quality of foreign cars have continued to rise while domestic cars have stagnated. Second, the United States allows unions to have monopoly power in many states. This means that you can not be hired unless you are in the union and also you can not be fired for being in the union.

Instead of begging for money, they should be begging for the government to release the union monopolization. There is nothing wrong with people coming together to collectively bargain. The problem is when the government gives them a monopoly on that job. The free market will bring peoples’ wages up according to their productivity and how good they are at helping their companies create cheap and quality products.


Published in: on November 23, 2008 at 4:37 pm  Leave a Comment  
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