Open Source Education Blog

With the 2000 “election” of oilman George Bush II, control of all branches of government is gained by the Republican Party. The Clean Air Act has been all but scrapped.  Bills to open the Alaskan National Wildlife Refuge are attached to every energy-related piece of legislation (defeated each time).

Rather than pass proposed legislation requiring automakers to make their cars more fuel efficient, a $100,000 tax break for SUVs is kept in place, in effect subsidizing the purchase of gas-guzzlers.  

Japan's own cycle catches up with them - labor is expensive, real estate fiascos ruin many banks, government corruption is publicized.  A recession grips the nation, and production slows, as it has in the U.S.  However, the growth of the Information Technology industry staves off domestic economic woes.

The cold war ends, but the US keeps investing large sums of money in the military that could otherwise go to social programs and other public sector supports.  General Motors creates a financial division (GMAC) in 1998, financing the sale of its own vehicles.

Japan enters the luxury car market (since we restricted imports by number of cars, they strive to make more per car) with Lexus, Honda and makes a better, cheaper product.

Reaganmics are applied to counter the economic and environmental regulation of the 70s - tax breaks and government spending puts lots of money in circulation and deregulates business.

The Arab oil embargo, imposed by OPEC producers in 1973, restricted the supply of oil temporarily and caused prices to rise. The embargo led to new energy policies including a 55 mph speed limit, mandatory fuel-efficiency standards for automobiles, the trans-Alaska oil pipeline, and a national campaign to cut energy use.

Watch out, big boys! Toyota and Honda enter the market with high quality small cars. Beefy American egos do not rush to buy them, but they work will in the cities, growing with new labor markets. The Civil Rights Movement means blacks have more job opportunities, more money, and they contribute more to the labor and consumer market.

The United States still has no viable competition in the automobile market. With the US economy booming, the military-industrial complex (created during WWI and not dismantled despite Eisenhower's warning final speech) grows in domestic power with Cold War.

Suddenly US is a world leader in manufacturing!

Consumers unleash their pent up demand for products after WWII privations.  With the US economy at full productivity (after providing munitions for WWI) and no competition (Japan, Germany beaten; Europe in shambles), we dominate the world stage in automobile sales. 

Our women have remained in the work force (replacing soldiers who went to war, and have now returned to find new jobs in the booming economy or go to College under the GI bill.  Women mean cheaper labor, which increases profits.