The diplomatic battle between China and Japan is taking a Latin American road trip

[LeveragedBuyout]

I disagree. The US economy was not down and out in the 70's. Only some segments of the Economy were Out, specifically the Automotive Industry viz a viz Japanese Auto market. Chrysler Corporation was on life support and it became evident that at least one of the Big three Auto Industry was taking its last breath. The other two were also not too far behind. All that changed when Chrysler Corporation brought in LEE IACOCA as Chief Executive. As Chrysler revamped its production Ford followed suit and pretty soon American Auto Industry became strong enough to face stiff Japanese competition in Auto Sector. This Auto revolution was followed up by IT Sector success, especially Microsoft Revolution and Intel domination.

Also, remember that the Global Economy had taken a huge Punch in the gut in early 1970's because OIL PRICES had Quadrupled sending all Industrial Economies in a Tailspin. Of all the mightiest Industrial economies , the US Economy was better positioned to take this Four times hike in oil prices because it produced half of its oil. Especially after the OIL Price hike some wells which were not economically viable became viable at higher oil prices thereby increasing US oil Production.

Add to this the fact that US Industry had to restructure itself because it lost some of its Manufacturing base to low wage countries like China, Indonesia and others. So you have to look at the big picture to get a true sense of how the US Economy has tried to reinvent itself and adapt to the changing environment.

You say you disagree, and then you repeat the transformation of the economy that began at the end of the 1970s that turned our economy around. I already discussed those themes, so it appears that you actually agree with me. Not sure what you're trying to achieve here.

Two points of disagreement, however: US oil production peaked around 1970, so while the oil shock affected the US less harshly than it otherwise would have, it was still a tremendous shock.

Really, there are only two words that sum up the US economy in the 1970s: "malaise," or "stagflation." Take your pick. I give you the infamous misery index:

I don't know how you can characterize the economy of the US in the 1970s as anything other than a train wreck, but if you like high inflation, high unemployment, and a GDP in recession, then I guess the 1970s were right down your alley.

Your other point, about Chrysler. Let's not mince words: Iacocca's "genius" was that he got a government bailout. As an economy, the US doesn't need that kind of genius, as so ably proved by the consequences of the 2008 financial crisis.

 

[Pakistanisage]

Your other point, about Chrysler. Let's not mince words: Iacocca's "genius" was that he got a government bailout. As an economy, the US doesn't need that kind of genius, as so ably proved by the consequences of the 2008 financial crisis.

I don't know how old you are but I was in my 20's in 1970's and lived thru that period in the US. At the time the US Consumer had lost faith in Detroit. Iacocca's campaign went a long way to reassure American Public and revive their faith in Detroit's produced cars.

Iaccoca's true genius was his marketing genius which he backed up with a 7 year/70,000 miles Warranty, the first in the Auto industry by any Auto maker. That warranty went a long way to rebuilding the American Public's confidence in Chrysler and helped pull Chrysler Corporation out from bankruptcy.

 

[LeveragedBuyout]

I don't know how old you are but I was in my 20's in 1970's and lived thru that period in the US. At the time the US Consumer had lost faith in Detroit. Iacocca's campaign went a long way to reassure American Public and revive their faith in Detroit's produced cars.

Iaccoca's true genius was his marketing genius which he backed up with a 7 year/70,000 miles Warranty, the first in the Auto industry by any Auto maker. That warranty went a long way to rebuilding the American Public's confidence in Chrysler and helped pull Chrysler Corporation out from bankruptcy.

I am younger than you; I was a child in the Carter administration, but I remember examining the state of affairs in the 1980s very closely. True, the warranty was a good idea, but besides the bailout which made Chrysler's survival possible, you also overlooked the Voluntary export restraints - Wikipedia, the free encyclopedia . My assertion is that Chrysler's success owed more to government protectionism than Iacocca, and I stand by it. In any case, this is tangential to the main argument, so sure, Iacocca was a genius who saved Chrysler. I give up, I need to sleep.

The point was that the US economy was a basket case 40 years ago, and much has changed since then. More will change over the next 40 years, so predicting what China will look like at that point, or what the world will look like, does not provide much value when examining the geo-strategic situation of today.