My First Retraction and Hopefully my Last

My last post on the potential for a return of Japan-bashing to the US was in retrospect off base. There is a possibility for Japan-bashing to arise in places like Michigan and towns whose fortunes are dependent on the auto industry. But things are very different now than they were a decade ago. Japanese auto companies are now building more cars in the US than ever before and as a result employing more American workers. The potential collapse of GM and Ford and their network of suppliers and the businesses that depend on them do however pose a threat. The implosion of the manufacturing industry may feed the flames of growing isolationist and protectionist sentiment in Washington and across the country. Chuck Schumer and Lindsay Grahm's proposal to add tariffs to Chinese imports if they do fully adjust their currency is just one such example.