were reduced to rubble, and their manufacturing capabilities, especially automobiles, didn't realize its potential until the mid 70s. The US auto industry fell victim to old technology and accountants making engineering decisions based on the bottom line (See Michael Moore's "Roger and Me"
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the United States rebuilt Germany's and Japan's manufacturing under the Marshall Plan so as to avert a continuation of the World Wars that started in 1914. The Versailles Treaty that ended hostilities in 1919, also bankrupted Germany and laid the groundwork for the Third Reich.
With new steel mills and modern facilities Germany and Japan surpassed the US in manufacturing. The oil embargo of 73-74 caused people to demand more efficient cars, and the US auto industry wasn't in tune with the market demands.
The tax structure also encouraged big business to reinvest its profits in R&D and expansion, thus creating new jobs.
Ronald Reagan's ill advised economic strategy gave the wealthy their tax breaks on the front end and encouraged big business to hide money in off shore tax havens and money laundries. Without a tax structure to encourage expansion, but rather designed to send jobs to cheap labor third world sweat shops America's manufacturing base slowly drifted off shore along with the commensurate well paying jobs and in the process taking money out of circulation.
W. Bush's tax cuts put Reagan's policies on steroids and the economy tanked in 08, just a few months before the Bush economic team expected.
Even with the cratered economy coming under W. Bush, the corporate media did its best to blame Obama.
Have to stop now for more coffee.
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