by GENE MYERS  April 10, 2024

I recall that during the 1970s that many mainstream USA-made products were of second-rate quality and reliability. This was most obvious with American-made cars of the period.

It was intentional. There was an insidious business strategy.

From roughly World War II until, say, 1975 American Industry was like an undefeated football team—30 wins in a row. The problem was that the rest of the world was recovering and their consumers needed “everything”. Up stepped US Industry (the main reason the west won the war) to fill the void. So, 30 wins in a row! The problem was that all the wins were by forfeit—there was no competition. Decimated by war, European and Asian industries were rebuilding.

Meanwhile the US economy was booming, and industrialists decided consumers needed to purchase more “stuff” with increasing frequency. A new phrase was introduced into the board rooms—”planned obsolescence”, sometimes disguised as “value engineering”. Nowhere was this principle more obvious than the automotive industry. GM, Ford, and Chrysler decided consumers needed to purchase a new auto every two or three years—and that’s about what most cars would last without expensive repairs. The phrase “Detroit Iron” was used to describe those shoddy products. The car buying public complained. The manufacturers sniffed and thumbed their noses. The message: If you don’t like it, go somewhere else—knowing there was nowhere else to go.

Meanwhile, W. E. Deming and Joseph Juran went to Japan and taught quality and reliability to a recovering nation eager to learn lessons that the accounting mentality US businesses rejected. Japan needed to resurrect their economy and knew there was no more eager consumer than the dissatisfied American buyer. US business focus was on short-term profits and lowest cost to produce. Being customer-friendly, focusing on total cost (not just item cost) and understanding lost sales were not considered important. In fact, promoting such notions got people fired for having negative attitudes—for not getting-with-the-program. Result: The US Steel Industry fell and the automotive market welcomed Japanese and German cars—cars built on quality and reliability. Uh-oh. This was a wakeup call all across the fruited plain.

In 1982 “In Search of Excellence” by Peters and Waterman took American business by storm, and the lessons taught by Deming and Juran (ironically referred to as Japanese management methods) followed as how-to methodology. Products improved dramatically. Both Deming and Juran, both well into their 80s, were sought as consultants to lead the way.

Then sometime in the 1990s accounting mentality prevailed again. The first step was “downsizing”, i.e., replacing savvy, experienced veterans with new less expensive managers who were oblivious to the Deming-Juran revolution. Many of these new managers were poorly trained. Businesses, not wanting to spend money, looked for self-trained individuals that could be plugged into offices and cubicles like droids. In Japan, these kinds of people were referred to derisively as “the new human race”. And so, digression back to 1970 business mentality took root and flourished and is alive and well today. Please note that the best-selling auto brands are Toyota and Honda.

Personal Note: I’ve noticed this phenomenon with a band I formed and manage. Originally, we worked together, and played with joy. It was difficult getting venues for the fledgling band in which to perform, and even then, we received no pay—not even water. Over the years members moved, retired, and left the band. In each case, I took care to replace each musician with one who was more experienced and more talented. Through the labor of the “originals” the band developed a reputation and paying venues were developed. I am now the only original member in a band that is tight and locally well-known and desired. The present band didn’t share in the frustration and toil it took to become accepted, and naturally (I suppose), have no appreciation for what we went through. Now they complain about not playing enough gigs and not receiving enough money. It’s like a scenario where a successful business is developed by hard-working, self-sacrificing individuals then turned over to their sons and daughters who have just emerged from prep schools and colleges. These represent “the new human race”. This is an example of the human condition.

Quality and reliability have today digressed to the levels of the 1970s, but (as yet) there is not widespread complaining—merely acceptance. My parents’ refrigerator lasted from before I was born until long after I left home. Today they may last ten to twelve years (if you’re lucky) and cost thousands of dollars to replace. By and large, the public accepts this as normal. Gas water heaters have always been guaranteed for five years, but lasted at much longer—in my experience up to 20 years. However, since 1995, I’ve replaced them on an eight-year cycle. There is a reliability statistic called mean-time-between-failure (MTBF), and clever designers have become expert at having products not last beyond that period, whether they be water heaters, car head lamps, or sump pumps. More consumption of goods, you see…

Now I believe a capitalist economy is vastly superior to the often-failed socialist/communist economies. The weakness or trouble with any economic model lies in unscrupulous managers driven by self-promotion and greed. Do not kid yourself that socialism does not have the same weakness—check out China, the Soviet Union and Venezuela. When I lived in the Middle East, they also promoted capitalism as an economic model, but referred to the United States as the Great Satan. They maintain the US has morphed more-and-more into a money-grabbing, usurious society.

Today, when I complain about a product that breaks down and must be replaced prematurely or a vaccine that doesn’t prevent a disease, people look at me like I have three eyes. The mainstream has been successfully indoctrinated to accept inferior goods, services, and information. (The Orwellian equation of 2 + 2 = 5.) I’ve become a pariah for having the audacity to point out that we’re repeating history because, well, “That was then; this is now” or I’m just an out-of-touch old fart.

Think I’m exaggerating? Am I a quality nerd who just doesn’t get it? I challenge you to check your emotions and ideology at the door and take an intellectually honest look since 2020 with respect to quality-of-life within the US. Here are a few effects that are painfully real: record inflation; record crime and drugs in our cities that go unprosecuted; seven million illegal people allowed in the country and rewarded for doing so; high gasoline prices; interrupted supply chain driving the cost of everything higher; record credit card debt—the list goes on.

For sure, the politicians (both sides) have let us down, yet we continue to behave like the three monkeys who refuse to see, hear, and speak. We’ve become like the Eloi from H. G. Welles who are willingly led to the slaughter.

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