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Culture War Roundup for the week of March 18, 2024

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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.

And as I understand it, there's almost nothing in common between a car factory and a modern weapons manufacturer.

Well, perhaps aside from armored vehicles and firearms. WWII suggests that industrial capacity is fungible in some specific contexts.

yeah. Naive calculation: Suppose Alice has a factory that produces tens of hi-tech bespoke post-Cold war optimized tanks during one year, say 50 units in year. Suppose Bob has several dozens of factories that can produce 500,000 of civilian vehicles each year. Bob needs only engineers to redesign the civilian car production line into something useful in military use -- perhaps, integrate anti-tank guided missile launcher and drone platform and minimal armor against small arms fire -- and then Bob can produce 10,000 modern anti-tank vehicles for each Alice's hi-tech bespoke tank. After the first couple of months, if both realize their current designs are not performing adequately in the field, assuming it takes equal time to come up with a redesign, after the resign and couple of months of production Bob has produced 80,000 upgraded vehicles against 8 Alice's upgraded bespoke units. But frankly, I presume if you have factories producing hundreds of thousands units for civilian consumption, your engineers are much better at setting up production lines, adapting and rolling out new redesigns than if your experience is producing hundreds of bespoke units to a contract.

I think the difference is that modern car factories can’t be retooled to build modern weapons the way WW2 factories could. So retooling the GM or Tesla factory to make modern missiles probably isn’t much easier than just taking over an Amazon warehouse and doing the same there.

To echo the other replies to this comment, a modern military will need drones, but will also still need 4x4 vehicles (whether Humvees, JLTVs, or even just modified pickup trucks), transport trucks (so you still need GMC and International Harvester and the like), and men with rifles (which will be some flavor of AR-15, traditionally-milled or possibly even 3D-printed).