Reply #2: Generally I think I am FOR higher tarrifs...

[chknltl]

...because the American worker should not have to compete one on one with the foreign worker manufacturing the same product but at ridiculously reduced wages.

In this case, I agree in part: The second part of the solution during the mid-70s was to manufacture cheaper products. Cheaper not in cost to the consumer but cheaper in: "it broke sooner"
Autos prior to the mid '70s made in America had a bit of pride put into them. That pride has been gone ever since yet the American consumer wanted the cars they bought to last as long as possible. That is why I think those consumers turned to Toyota. Where we should have made products as reliable as a Swiss watch, we were turning out Pintos and Neons and Monzas and etc.

That is, imo, why the Japanese auto-manufacturers did so well here after the mid-'70s. They filled the niche once held by products built with "American Pride".

So it sounds like you agree that this is an oversimplified parable...but like me you are not sure why either. I confess that I am no economics genius but I don't want to believe that Americans are this silly as the parable suggests. Another-words, I am having issues with this parable but I lack the tools to tell you why. Hence my "?" at the end of 'parable'