Keynes vs. Smith?

Last week, President Obama made a visit to Michigan in order to celebrate the fact that the Big Three American automakers — GM, Chrysler and Ford — were all operating at a profit again. He even went so far as to make a bold declaration that American car companies had not only rebounded from their deep structural problems that had driven the industry into decline for years, but that they were on the road to resuming their place as global leaders once again.