See article: Selling Out the U.S. Auto Industry by the U.S. Government:
How the Big Three Are Sacrificed by U.S. Foreign Policy and Incompetent Trade & Economic Policy
http://barrysacks5.com/usautoindustry.htm
No country has markets that are more open than America's. Proof of this can be found in 30 years of consecutive and large trade deficits ($6 trillion cumulative, $817 billion annually as recent as 2006). This video clip illustrates how Japan, as an example, with their more restrictive markets is able to use trade practices that place American manufacturers and workers at a significant disadvantage. In the area of automobiles and electronics, for example, Japan's government and corporations have collaborated to such a degree that American corporations and workers are at a distinct disadvantage.
Since World War 2, America has had a unique trading relationship with Japan. America's foreign policy with Japan is to help it rebuild its economy and provide military protection as an incentive to not rebuild its military again and to not return to imperialism. One of the ways Japan's economy has benefited from this policy is that it has virtually free access to America's markets while America's corporations do not have the same level of access to Japan's markets. In other words, Japan's corporations compete and export from a sanctuary that gives them all the benefits of their own market and America's market but without the external competition in their own market that would subject them to cost and economic pressures faced by American corporations. Japan has benefited very well from this arrangement while America has suffered trade deficits with Japan for over two decades.
I believe America has allowed this situation to continue for three reasons: 1) America does not want Japan to return to imperialism so it tolerates unfair trade with Japan as an incentive, 2) because of America's trade policies, such as the one it has with Japan, it is a debtor nation and needs loans from Japan to finance its trade and other deficits, 3) American government suffers from corruptive influence via unethical (but legal) lobbyists who represent the interests of both American multinational corporations with interests in Japan and foreign corporations and governments.
Since this video first aired 16 years ago (1992), the annual trade deficit with Japan has almost doubled to over $7 billion/month ($88 billion for all of 2006).
Since this video aired 16 years ago, the total annual trade deficit (for all nations America trades with) is almost 12 times worse (from $70 billion for all of 1993 to $817 billion for all of 2006).
According to the BBC, America borrowed $2 billion daily in 2006 to finance its trade deficit. Federal Reserve Chairmen Greenspan, Bernanke and others have all publicly stated that America's trade deficit is unsustainable. So much for economics theories defending America's trade deficits and trade policies. Foreign investments in the United States provide only about a tenth of the needed funds to cover the trade deficit, thus Americans borrow about $50 billion each month to cover the difference. Again, the total trade-related debt is currently about $6 trillion, and at five percent interest, the debt service comes to about $2000 per American worker each year. High and rising trade deficits tax the economy and are a drag on growth.
Video clip used under Title 17 U.S.C. Section 107 "Fair Use" for editorial and commentary
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