Lester Thurow in his book Head to Head contributes to the many recent analyses of the international economic scene and especially of the competitiveness--or lack of competitiveness--seen in American industry when matched especially against Japan and West Germany (now simply Germany, though the capabilities of the reunited Germany have not yet been fully tested). Japan in particular has been held up by many as a country more efficient and more productive than the United States, and the image has been created of a major trade war between the U.S., Japan, and the emerging European Community. Thurow examines this "war" beginning with the idea that the U.S. is at a disadvantage and has to work to catch up to Japan and Germany in particular. Thurow does not take a pessimistic view of American chances, however, and feels that America can make the adjustments necessary to become the leader. The title of the book--Head to Head--evokes the image of a direct confrontation, the "economic battle" noted in the subtitle: "The Coming Economic Battle Among Japan, Europe, and America." Thurow's analysis is especially important given the recessionary economy the U.S. has been facing, the arguments over whether NAFTA (the North American Free Trade Agreement) would benefit or hurt the American economy, and the implementation of the Clinton economic plan over the next several years.
The success of Japan has been cited by many and has also engendered a good deal of Japan-bashing among those who feel the Japanese take an unfair economic advantage, yet few would dispute the impressive gains Japan has made over the past forty-five years. The Japanese industrial expansion since World War II has been considerable. Japan began from a position far behind the West, with her infrastructure devastated, and since has achieved a position of economic preeminence, challenging the United States and other industrialized nations for world leadership in innovation ...