Manufacturing, Manufacturers Quotes
After the Second World War Japanese industry had mostly not yet been rebuilt from the destruction of the allied bombing. The automobile industry, which before the war had aspirations of worldwide competition had been reduced to one company making less than 1000 cars a year and not many more trucks. However, when the Korean War broke out, there was a need for many military vehicles to support the allied war effort. Japan being so close and having very low labor rates had the opportunity to supply many of the needed vehicles. This allowed Nissan, Toyota and Datsun to get on their industrial feet, and from there to become world leaders. Hence, for Japan, the war was a gift from the Gods.
Jobs was referring to consumer products, but many feel that the principle holds with respect to politicians also.
This quotation is an excellent example of the attitude of many upper class Englishmen towards the United States in the early part of the 19th century. With the notable exception of Ben Franklin, American Science was undeveloped, and the arts were equally unrefined. However, in assessing the United States, nothing was more derogatory than American Slavery which was totally primitive and barbaric by sophisticated European standards. What is amazing about this quotation was its truth and accuracy which shows us the amazing American development that the United States underwent in the next hundred years when it would be equal to any nation on earth. The American freedom, the abolition of slavery and the brilliance of welcoming immigrants from the world to help develop the free nation produced the greatest country on Earth.
Fortunately for America, Jefferson did not get his wish. Jefferson did mellow on this point as he got older. See {606440} for a related quotation 27 years later.
It is very easy for an American company to make parts in the United States, ship them to Mexico for assembly and bring the finished product back. However, for counties like France it is much more difficult.
Eli Whitney, the inventor of the cotton gin, tried his hand as a gun manufacturer early in the history of the new nation. He persuaded President Thomas Jefferson that he could manufacture muskets with interchangeable parts in an era where each gun was made uniquely and there were no “spare parts.” So Whitney was the first of the American Defense Contractors. He was also the first to fail to deliver on his contract. His guns were years late and when they were finally delivered, they were very expensive and worse, not very good. The reason that this quotation is cited is that while Irvine was trying to recover the taxpayer’s money, Whitney visited the Secretaries of State and War as well as President Madison and members of Congress. The result was to give Whitney another chance and another big order for 15,000 guns. Even Whitney later admitted that these were not very good. Some argue that this quotation shows that nothing has changed much in military procurement and defense spending.
This same argument was used before and since to justify protecting domestic manufacturing from foreign competition until it can mature sufficiently to compete in a global economy. One difficulty occurs if protective tariffs are imposed for this reason. The manufacturers protected never seem to reach the point where they can compete without the subsidy.
