The mantra before, during, and after the bailout was (and still is) that without the bailout, gadzillions of jobs would have vanished, the American car industry would have been wiped out, wheels would have come off the arsenal of democracy, and the sky would have fallen into Lake St. Clair. Of course, that’s nonsense. There are more than enough other carmakers in America. They would have received the sales, and added the jobs. They would have been mostly non-union jobs though.
The truth is, without the bailout, the UAW would have vanished, and with it millions of Democratic votes.
Rutgers University professor Thomas Prusa says that the much maligned Japanese auto industry in the United States “has emerged as a major contributor to the U.S. economy.” In a new study, the professor says that the Japanese auto industry is “responsible for 1.2 million U.S. jobs based on the U.S. production and sales for Japanese-branded automakers,” and that these jobs generate over $76 billion in annual compensation.
Rather than posing risks to U.S. jobs, “the Japanese-branded automobile companies have increased the international competitiveness of all U.S. auto and auto parts workers,” the study says.
Declares the professor:
“While many parts of the U.S. automobile industry have struggled in recent years, the Japanese-branded auto segment has emerged as an important job creator and a leading contributor to the United States economy. The role of Japanese-branded automakers’ investment has grown significantly over the past two decades. In the mid-1980s less than 15% of the Japanese-branded automakers’ U.S. automobile sales were produced in North America. Today approximately two-thirds of the Japanese-branded automobiles sold in the United States are built in North America. Moreover, Japanese-branded automobile plants account for nearly 40% of all U.S. automobile production.”
The study was prepared for the Japan Automobile Manufacturers Association. Spool-up the prayer mills!