Seriously, it’s all simply old-fashioned protectionism.
What I’ve noticed over the years is this: each country appears to have its period of favoured time in the sunshine. However, it eventually finds that it’s paying itself too much, only to see its customer base shift irrevocably to the next cheaper producer. It was the UK’s turn for many years, then it lost its shipbuilding to France and Germany and Japan. As far as cars go, what wasn’t destroyed by bloody-minded unionism and strikes, moved into Indian and German hands… irony? After a while, Korea moved in and replaced much of everything, leaving a now over-expensive Japan outsourcing too (à la Nikon) and so it goes. It will soon be India’s turn to glow (AFAIK it now builds Excelsior motor bikes that were once English… it has the capacity to build ships, and launched its first big one - the Jala Usha - in Vizag in 1948), and Africa beckons from the wings. Ask the US about the rust belt, and an honest answer will confirm it has no chance of recovery unless subsidies reach the Moon. As I see it, we have our good run, and then the curtain falls on the production and it’s time to go home.
The same problem of paying the self too much isn’t confined to states: many individuals fall into the same trap, often via the simple process of buying more expensive stuff than they can actually afford. I used to buy my cars with a single payment. At one stage, the accountant advised I should buy on hire-purchase instead, and enjoy the writing down process more than I was doing. I did that twice, and with it came two bad years; never again: if I couldn't write the cheque I waited until I could. An untroubled mind is worth a lot. Of course, I do appreciate that that’s not everybody’s attitude to business. There is the school that believes that if one fails, that’s then the bank’s problem instead…
