Let's back up 30 years or so and look at the state of the world.
The auto industry was going to absolutely fail because of the cheap Japanese imports. There was no way that the US car builders could compete with the "cheap labor" from overseas. The steel industry was in the same boat (and the boat had a huge hole in the side). Even German labor was considered cheap, although because of tariffs and taxes, European cars were a bit more expensive.
Now, those countries build cars here because it's cheaper. What happened? Their standards of living went up. Some fat got cut from the system here. Efficiencies changed.
It is NEVER a good idea to "Buy American" (or German, or Japanese, or British, or anything else) just because. It rewards less efficient mechanisms and keeps them from changing.
Thirty-some years ago, GM built ****. Vegas rusted ON the showroom floor. Ford wasn't any better... just say Pinto. Chrysler, nothing really worth buying to keep. AMC... ROTFLMAO. Compare that to BMW building 2002 Tiis, and Datsun building 240Zs.
Now, GM builds a WORLD CLASS Vette, Ford builds a WORLD CLASS GT, and the Viper is equal to anything in the world as well. Jeep makes the best value in ******** 4x4s (Rubicon), while all of the big 3 are making other cars and trucks that leave us lusting. They still have staggering legacy costs, and face challenges, but they have been forced to compete with the best cars in the world... and do. It has made their product better.
Now, let's look at tools. As long as the US manufacturers fail to control their costs (through automation, design and other measures), and fail to reinvigorate their lines with new tools and accessories, they will suffer. If they freshen their products and build what people want, they can (and will) command a premium.
I want to point out a few things previously in the thread:
Bridgeport. OK, so after their patent expired, they had to fold and got bought out? Is that because they were undercut by foreign competition, or because they didn't bother to do any design work to make a better product? Come on! If you make the same thing, and don't take advantages in technology as it advances, you DESERVE to go out of business.
Someone mentioned being born in a Communist country. Look how well that whole protected market strategy worked for them. There were some GREAT cars coming out of the Communist block. People would stand in line for Trabants and Zils... not. Especially since they cost more than Volkswagons and Lincolns (respectively).
Lastly, about where will we get our stuff if we go to war with the countries that produce stuff cheap... we will design and manufactur it. The flip side of the question is where will they get the advanced design and manufacturing techniques we will develop? We still have more jobs coming IN to the country than going OUT of the country. And those jobs are the ones involved in designing the new products and processes. As long as we have the brains, we can re-tool and make better stuff. We can beat the old stuff with the new stuff we can design. They might have the tools, but they don't have the infrastructure to stay on the cutting edge.
Protected markets don't give any advantage to the company (OK, some short term advantages), the consumer, or the economy. Buying a less than superior tool, and/or paying a premium price, JUST because of where it is made just keeps the protected vendor from competing.
Sorry to be so long, but this is a topic that gets to me. That, and people tossing around the word "greed". Most people can't even come up with a definition that stands up to the least amount of scrutiny.