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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. She is currently on leave.
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Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero � all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Toyota's Weekus Horribilus

By Megan McArdle
Feb 3 2010, 5:55 PM ET Comment

I cannot get too interested in the conspiracy theorists asking whether the US government doesn't now, due to its ownership of GM, have a conflict of interest when it starts publicly raking Toyota over the coals.

Item One:  Toyota didn't handle this particularly well, and there's at least some suggestion that they downplayed problems that were killing people.

Item Two:  Many people in our government already had ample bad incentive to rake Toyota over the coals, because they come from states where the UAW is popular.

Now, there's no question that this is good for American automakers, since their lingering reputation for terrible quality has historically handicapped them in competing against the Japanese.  But I'm willing to bet the biggest beneficiary is Ford, not GM or Chrysler.  Ford is perceived as basically healthy; the other two, as crippled and weak.

What it means for Toyota should be a management shakeup.  The US is a huge market, and they just did brutal damage to their brand on one of their two or three biggest selling points. People are going to want to see rapid commitment to making sure this never, ever happens again.  Moreover, it would be good for Toyota to actually make such a commitment.  How do you design floor mats that will kill people if used improperly?  Giving engineers power is a great way to get quality improvements.  But they have to keep in mind that they're designing cars for normal people, not engineers.


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