Deindustrlzn America

Out of print? This book should never be out of print. But then again, Jean Renoir's Rules of the Game was almost destroyed during the Second World War. Greatness is sometimes fragile.Barry is something of a personal hero of mine so I do have a bias of sorts regarding this book and its follow-up, The Great U-Turn. Reviewing this book is like reviewing a classic music album: everything written in the last 20 years about Economic Policy and investment has been influenced by what Barry and Bennett wrote here and there is no more hated book by Reaganauts who would like you to believe THIS NEVER HAPPENED.This book was the first book to talk about how industry in the United States was dismantled, in particular the Auto and Steel Industries of the midwest. The book traces decisions made by corporations in the 1970's and why these decisions were made, in light of perceived opportunities in Central America and the Far East. Could have the decision been made to do the reinvestment in the US (particularly in light of the modern day relative success of Saturn)? The answer is clearly not without the calculated weakening of powerful unions in auto and steel. If the unions were weakened, however, communities such as Flint, Michigan and Youngstown, Ohio were almost wiped out by disinvestment. There was considerable denial at the time about what was happening but Barry and Bennett's book makes clear that industry was dismantling and disinvesting and not coming back.The awareness raised by this book probably saved a bad situation from becoming much worse. If the dinosaurs left the continent, though, maybe in retrospect we are better off for their having left. Car makers from Japan and Korea have been willing to make the autos that US carmakers have only made with the greatest of reluctance, and creating assembly plants here in the US as well. But it has taken a generation to recover from the wholesale deindustrialization and the cost was much greater than people should have been asked to bear. Never again should American industry be allowed to tear out its roots and toss them aside. If you want to know why, this is the book to read. Please read the great final chapter on Reindustrialization with A Human Face for helpful guidance and insight on where to go from where we are at, insight that 20 years later still makes a great deal of sense.

From the backdrop of World War II, American business emerged as the World's undisputed industrial economic leader and lender. The expansion of American investment in Europe, Asia, the Americas, and further assured its prominence by the establishment of the U.S. currency as the capitalist world's principle reserves, while labor strenuously acquired the motifs of a welfare state. Such unprecedented success created an ambivalent relationship between capital and labor where each party had acquired a win-win situation. This brief cease-fire came to an abrupt halt with the threat of foreign competition and sluggish growth development spurred what Bluestone and Harrison termed as the `deindustrialization' of America. In a panic to maintain the capitalist status quo, business owners closely emulated Japanese zaibatsu's in purchasing many non-related businesses to expand their economic clout versus improving their current facilities. The failure of industries meeting excessive profit percentage justified many corporate executives of closing down factories to minimize labor costs and outsource to less constraining economic contingencies and forever disrupting people's and the communities livelihood. Drastic improvements in network technology, communication and transportation permitted micro and macro control of factories despite distance. Thus companies are no longer confined by regional or national boundaries can effectively utilize segmentation tactics against unions, local, state, and national officials in gaining unequal terms. Corporate outsourcing has manifested itself into dual the phenomenon of boom-town and bust-town causing unforeseen problems. American urban areas such as Houston and Silicon Valley have grown in attracting Northern city businesses, foreign investment, and becoming known as tax heavens.