The 1970s oil price shock harmed U.S. automakers not just by reducing driving but by suddenly making small, high-mileage cars attractive—cars that American firms didn't make because cheap gasoline and abundant land had given Americans no incentive to demand them, while foreign makers (with high gas taxes) had been making them all along.

causalpending

Speaker

Russ Roberts

Evidence Quote

all of a sudden that foreign product is suddenly much more attractive in America than it used to be so you have this industry that should respond dramatically to that but they're not used to responding much

Source

Michael Munger on Franchising, Vertical Integration, and the Auto Industry 06/22/2009EconTalk
Created: 6/17/2026, 10:31:26 AM

My Notes

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