How long has the auto industry been unionized? Since the Depresson, at least. Cheering the demise of yet another domestic manufacturing sector is the height of stupidity. There will come a time when it is not just the loss of employment that is mourned. GM has been putting out some really good product for going on five years, now. They’ve been turning the corner. All for naught, never to be forgiven for bureaucratic bumbling in the seventies and eighties, it seems.
Every single automotive manufacturer in the world is going to be in big trouble, if they’re not already, including Toyota, due to this economic crisis. Toyota has had de facto subsidy all along. Is it “right?” Not for us to say, apparently, since we have no say in the matter. Do we really want to be like England?
True.
But there is trouble, then there is trouble.
Toyota has had a fall in profits, yes. Difference is , they are still making profits, and their market cap is vastly bigger than GM’s.
GM on the other hand, is making huge loses, doesn't have enough money to stay in business, and GM’s market cap is currently under $3 billion. Bill Gates could buy GM from his pocket change.
“Every single automotive manufacturer in the world is going to be in big trouble”
I think we miss the point in singling out the auto industry as being in “big trouble”. Everyone and everything is in BIG TROUBLE. The question is why, and how do we fix things. It seems to me that once upon a time this country enjoyed a level of income and prosperity unprecedented in modern times. It was a time when we imported very little and actually made things in the USA. Since so called “free trade” came along, followed by outsourcing of jobs, all hell has broken loose. Do you think maybe our financial crisis is simply caused by the decline in the ability of the american consumer to support our current standard of living?