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kentuck

(115,406 posts)
Sun Mar 6, 2016, 07:47 PM Mar 2016

Michigan was once the manufacturing center of this nation. [View all]

Especially during the 50's and 60's. After the oil embargo in 1973, people started looking for more economical cars. Toyota was coming into this country faster than they could be produced. The big car companies in Detroit attempted to make cars that could compete with the Toyota, cars like the Ford Pinto or the Chevy Vega. They failed miserably.

Automobiles had been the centerpiece of Michigan's economy for several decades but, the influx of foreign cars, mainly Japanese, took a heavy toll on their economy.

Ted Cruz blamed the failure of Michigan's economy on Democratic liberal policies for sixty years. His audience seemed to accept it as the gospel truth.

However, he never mentioned the passage of NAFTA or GATT or any of the trade treaties that were passed in the 1990's and after? American companies were taking all kinds of manufacturing out of this country. (They blamed the high wages of union workers when in fact, their marketing budgets were larger than than their union payroll.)

Michigan did not have enough of a diversified economy and when they lost their manufacturing jobs, especially automobiles, and their economy nose-dived, along came "voodoo economics". With plans to cut spending and cut taxes, there were added pressures on the cities, like Detroit.

Until we are where we are today. The arguments, that it was some "evil" within the Democratic Party philosophy that caused the collapse, were unsound. Nothing hurt Detroit and manufacturing more than the trade treaties that were negotiated and approved by both political Parties. If the inclination is to blame someone else, then we should understand that these treaties were "bi-partisan" in every respect.

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Detroit built the Middle Class. Octafish Mar 2016 #1
Michigan, Ohio, New York, Pennsylvania - the whole rust belt Retrograde Mar 2016 #2
Part of that was bungling by car company management Warpy Mar 2016 #3
'THE GM SYSTEM IS LIKE A BLANKET OF FOG' (FORTUNE Magazine) Downwinder Mar 2016 #7
Thanks! That's great Warpy Mar 2016 #12
Agreed, Detroit was largely responsible for its own demise frazzled Mar 2016 #13
The auto companies always outsourced parts manaufacturing 1939 Mar 2016 #4
Ford had an assembly plant in Dallas. Jim Beard Mar 2016 #6
Not to mention Union Busting and relocating to the Southern states. Jim Beard Mar 2016 #5
This message was self-deleted by its author A HERETIC I AM Mar 2016 #8
Yes these trade treaties were negotiated and approved by both parties, but the overwhelming majority B Calm Mar 2016 #9
GATT was an FDR/Truman creation. I don't think Detroit's problems go back that far. pampango Mar 2016 #10
Michigan and the automakers were slow to adapt. Kaleva Mar 2016 #11
Being a child of Detroit ... kwassa Mar 2016 #14
Michigan like much of "The Old Foundry" states depended on heavy industry HereSince1628 Mar 2016 #15
The good old days... blockhead Mar 2016 #16
After NAFTA, US automobile industry employment increased 20% bhikkhu Mar 2016 #17
I disagree with the above. The cold war pushed manufacturing spread via tax breaks. Festivito Mar 2016 #18
Some will disagree but the riots didn't help any. When a city burns it Jim Beard Mar 2016 #19
Ross Perot? oberliner Mar 2016 #20
Bad management. moondust Mar 2016 #21
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