Where once Volkswagen was a household name, it is now a bit player in North America. In contrast, the Big Three auto companies have been posting record profits. German and Japanese protection and regulation of domestic industry have raised their cost of living while promoting the illusion of stability. This has meant that high wages have translated into much lower levels of consumption and job growth has been nonexistent. Leaders worldwide and most especially in Europe and Japan now speak of their economies' need to become more American, but the political will is lacking to carry out such changes.
History shows there is a clear path to sustained economic growth.
It is a path that embraces competition, learning, adaptability and innovation. Protection is not one of the signposts that guides the way on this path. And so far, no alternative routes have produced comparable results.