Blame Beyond GM's Management

Alex Epstein has written two good blog posts critical of the notion that the primary blame for GM's problems should be attributed to GM's poor management over the years. See his posts:

• The elephant -- and the Donkey -- in the room (part 1)
• The elephant -- and the Donkey -- in the room (part 2)

In this second posting he recommends the writings (on this subject) of Holman Jenkins of the WSJ. He excerpts the following gems from a recent Jenkins article:

Why don’t the auto makers limit themselves to paying competitive wages and benefits in line with what workers could earn elsewhere? Because, in the 1930s, Congress passed the Wagner Act with the nearly explicit purpose of imposing a labor monopoly on Detroit to keep wages at higher-than-competitive levels.

Why doesn’t Detroit rationalize its musty brand lineups and dealer networks? Because, in the 1950s, legislatures across the country imposed franchising laws, including the federal “dealer day-in-court clause,” to make such rationalization prohibitively expensive.

Why don’t the auto giants do as Whirlpool and other manufacturers have done, and move their production to cheaper offshore locales? Because, in the 1970s, Congress enacted fuel economy rules to penalize homegrown auto makers if they don’t build the lion’s share of their cars in high-wage, UAW-staffed domestic factories.