That doesn't really seem true to me. Car companies make products that can sell. People vote with their feet. People make decisions to buy bigger vehicles so that's what is manufactured. If there is increased demand for compact cars the manufacturers will make more (like they do outside of the US).
Companies might not seek to hire people nearby but they might put their offices in a more convenient location.
Either way you seem to completely miss the idea that alternative methods of transportation like mass transit or bicycles etc might expand in use. Which can cause those things to expand (better mass transit coverage, better and more protected bike paths). Again there are examples all over the world outside of the US.
> People vote with their feet. People make decisions to buy bigger vehicles so that's what is manufactured. If there is increased demand for compact cars the manufacturers will make more (like they do outside of the US)
Yeah and people are irrational and wrong, that's why the right incentives must exist so they are more incentived to buy smaller cars such as single-person or 2 person cars.
> Either way you seem to completely miss the idea that alternative methods of transportation like mass transit
I did not, of course better transportation its the solution in long term but in the short one we need viable solutions as well.