Slow Boats From China
22nd November 2008
The Hog looks at current economic affairs.
The Japanese used to make bad cars. They improved. The Koreans make good cars. The Chinese are going to make good cars, too, and they’re going to be dirt cheap. And it’s going to happen right when our bloated car industry is supposed to start paying off on our giant welfare check. Am I the only person who sees a problem here? Would you invest in a failing Burger King, if you knew the Chinese were going to open a similar restaurant next door, charging half as much for the same food?
No.
The UAW needs to get a grip. Their wages are going to plummet, with or without a bailout. That is a certainty. They can’t compete with the Japanese, and when the Chinese show up in force, they’re going to be annihilated. They should be working with the carmakers to increase efficiency and get wages in line with revenues. The free punch and pie are things of the past. The fifty-year-long frat party is OVER.