On this blog and elsewhere, I often see assertions that America prospered after the Depression because our competitors were in a state of ruin.
That’s just not right.
The US benefited from the destruction of its competitors first because it enabled a monopoly within its domestic market. Secondly, it enabled a monopoly in regional markets. And lastly, it enabled us to rebuild these competitors and sell our products to them. However, as they quickly rebuilt it meant the penetration of the US marketplace, partly opened up as a response to the Cold War. The U.S. car industry went under because it lost the competitive battle in the domestic marketplace to Germany, Japan and finally South Korea. Would this have happened in 1960 ? No.