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Okay, I'll go.
The big news this weekend was that Trump had a rally and said that, should he not be elected, the U.S. auto industry would be overrun with cheap Chinese imports. He used the word "bloodbath".
The mainstream media, which we're assured rarely tells outright lies, decided to find the exact dividing line between an outright lie and "still technically the truth". You can be the judge of whether they succeeded. For just one of many examples, Joe Scarborough ran a segment where the words "Trump warns of a bloodbath for America if he loses" were emblazoned on the bottom of the screen.
Of course, if any of this surprises you in the slightest, you haven't been paying attention. It's slightly boring at this point and would be funny except so many boomers still watch that dross.
What I want to focus on is the actual substance of Trump's claim. I think that, this time, Trump is on to something. The Detroit auto industry is about to have a head-on collision with China and get absolutely wrecked.
Already, Detroit is not in good shape. The Big 3's share of U.S. auto sales has fallen from 90% in 1965 to just 44% by 2018. (I'm sure it's much lower now). It gets worse. The only reason that Detroit has done this well is a 25% tariff on foreign light trucks that was passed by LBJ in retaliation for European tariffs against U.S. chicken.
In terms of small cars, Japanese automakers have been beating Detroit for decades. For luxury vehicles, Germany has worldwide dominance. That leaves only light trucks and SUV's, where Detroit still performs well only due to tarriffs. We've sort of forgotten about Detroit since 2008. The perception is that things were bad for awhile, but then the automakers got bailed out and they're okay now, especially #girlboss CEO Mary Barra.
This isn't true. The stock prices of the Big 3 have limped along. GM, once the 2nd most valuable U.S. company, now has a market cap only 2% the size of NVIDIA. And, if the Big 3 haven't gone bankrupt again, it's only by jettisoning high-paid union labor. Michigan, once a well-off state, now ranks 39 out of 50 in household income, falling well behind former hick states like Texas and North Carolina.
Enter China.
China is already, by far, the world's largest producer of automobiles, producing about 3x as many as the U.S. Also, China can sell an EV for $10,000. While I'm sure there would need to be changes for the U.S. market, it would not be too expensive at scale. Get ready for hordes of these "shitty but good enough" cars to enter the market.
"No one will ever buy a Chinese car" you laugh, nearly dropping your monocle into your glass of cognac. I don't think this opinion can withstand serious scrutiny. Japanese cars once had a similar reputation. Nowadays, choosing to buy an American car over a Japanese one is seen as either extremely patriotic or moronic. Even if quality never improves, people still buy plenty of Kias and Hyundais. How many more would they buy if the price was reduced by 30-50%?
So let's say all of this is true. A wave of Chinese imports are coming which will cripple the U.S. auto industry. How will voting for Trump help? My gut feeling is that Trump can't save Detroit but that, unlike Biden, he'll at least try.
For most of the period of the 1980s-present, the world has been a huge beneficiary of free trade. The rich in the U.S. have grown much richer, obscenely so. But the biggest gains have been won by the working class in developing nations, especially China. Despite all that there have been losers. The biggest losers are the working class in rich nations, especially in areas that compete with China.
The traditional government solution to manufacturing being outsourced has been to offer job retraining and lots of government benefits to the affected class. But this just doesn't work. The places that have been affected by blue collar job loss are now hollowed-out shells of their former selves.
Trump will probably at least try to ban or tax Chinese cars. Is this the right thing to do? Maybe, maybe not. It will cost American consumers a lot of money, and it will depress wages in China. In aggregate, the tariffs will probably make the world a worse place. But they will help the group that has lost so much and which has been ignored and scorned for decades. The group Biden pretends to care about but which Trump actually does.
Edit: Just saw this retweeted by Crémieux:
America's most affluent metro areas in 1949: https://twitter.com/DKThomp/status/1769891112095740274/photo/1
You'll never guess who's #1.
I vaguely remember a period in the 80s and 90s when cars were a culture war. "Assholes drive imports" was a slogan for a certain sort, who were patriotic enough to buy American cars even when the foreign imports were clearly superior. It was mostly working classs rightwing types doing that.
If we get a big wave of cheap, good-enough, electric cars made in China... how do the culture war lines break down? The right is more pro-American, but these days the left is more foreign-interventionist and might care more about opposing China. The left likes electric cars, but the right has more broke people who just want to save money. And Elon Musk doesn't fit clearly on either side.
On the other hand, does this even matter? Once upon a time the auto industry was a huge deal, both to create jobs and for the military-industrial complex. Nowadays, like you said, the big car companies are tiny compared to... gaming graphics card manufacturer. And as I understand it, there's almost nothing in common between a car factory and a modern weapons manufacturer. So maybe it's OK to just let China take over the car industry, just like we let them take over every other kind of manufacturing.
Trucks are really important for logistics. Soldiers need offroader vehicles - a humvee or something like it.
Furthermore, the broader learning in how to make factories, production chains, engines, working steel all helps military industry. If you've got a big car industry, you'll have a big robotics and machine tools industry too. You'll have lots of experienced engineers who can help make weapons. If you have a big electric car industry, you'll have a big battery industry and batteries have all kinds of military applications in lasers, drones and so on. Everything connects to everything else.
Converting factories to war production, that will be much harder these days. But the pools of knowledge, capital goods and experienced workers are still quite important.
I'm not an expert so I don't want to argue this too much. But what I heard was that, basically, modern military stuff is more like a custom bespoke piece, where each individual tank/ship/airplane/whatever requires tons of individual workers to pore over it and custom assemble it. They all need security clearance and experience with this very specific military technology that has no other application. Factories are more about scale, building up as big and cheap as possible, so they use totally different tools and ways of thinking.
I'm sure that\ you could take automative factory workers and engineers and re-train them as military workers, but you also do that with, say, software engineers.
"Bespoke crafting" sounds true, that is how the hardware has been ordered for past few decades, but at the same time, it looks like such mode of production is not working very well when put into a test of a large-scale war (Ukraine). What seems to count is the ability to mass-produce hundred to thousands of missiles, thousands of cheap drones, and millions of artillery shells. Nobody seems to able to produce hundreds or thousands of tanks and airplanes, but if either side possessed such ability, it might decide the war.
That isn’t because America is fundamentally incapable of making more weapons. It’s because US strategy for decades has been that the only conflicts America will fight will either be against vastly inferior conventional forces in places like the Middle East or in a great power conflict against Russia or China which would either go nuclear or be over Taiwan and therefore resolved pretty quickly (the Chinese landing would fail or succeed in likely fewer than 72 hours).
The Ukraine situation is an extreme anomaly.
In great power politics, the wars are sufficiently rare that anomalies also count. (The French revolutionary and Napoleonic wars were anomalous in their scale. WW1 was, again, anomalous.)
Predicting the outcomes of wars is unpredictable business. Before the 1st Gulf War, very few people knew for certain it was going to be a quick, decisive victory against inferior conventional force. If American strategy calls for small wars in the Middle East or quick decisive naval wars in Asia, what Washington is going to do when faced with an adversary who is perfectly aware of the American strategy and thus presents something that is neither?
And anyway, the current nuclear stockpiles are a fraction of what it was in the 1980s. During the Cold War, the end-of-the-world thought stopping does-not-compute aspect was heavily colored by fiction and propaganda. After the nuclear exchange, a world will end, but the world will not.
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