What makes Germany and Japan so competitive today is the fact that their industries were destroyed in WWII. They were forced to rebuild...amid tough competition. The United States, on the other hand, never had the benefit of aerial bombardment.

the author is perpetuating a myth here: that germany and japan are more modern because they built all new industry after world war 2. but i remember seeing a study some years ago that the average age of plant and equipment in japan was only 11 years. they have turned over their industrial base several times since the end of world war 2, and the original factories are long gone. that is why germany and japan have been successful, because they are constantly modernizing and improving, while some older american industries have not done so.

it all goes back to what warren buffet said, that he invests in companies that are idiot-proof, because at some point there will be idiots running them. now it appears the american auto industry has been run by idiots for decades, and it is finally catching up with them.