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OrionTheWolf -> RE: Why the auto industry (9/6/2009 9:51:15 AM)
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Here is some things to consider:
"All auto-related industries and after-market service businesses employ approximately 3.1 million people in the United States. The U.S. Bureau of Labor Statistics breaks down the workers into the following segments, as of September 2008: Parts manufacturing-504,000; Repair operations-864,000; Wholesale operations-340,000; Dealer operations-1.2 million; and Manufacturing-114,000. GM directly employs 123,000 in all of North America.[15] An estimated two million people rely on the industry for health care and 775,000 retirees collect auto-industry pensions.[14] "
http://en.wikipedia.org/wiki/Effects_of_the_2008-2009_automotive_industry_crisis_on_the_United_States#Industry_labor_statistics
So if 2 million people reply on the Auto Industry for health care, and another 775,000 that can retiree benefits, what does it do if the auto industries go under? That would mean another 2 million added to the amount of uninsured, another 2 million that would be collecting unemployment, all that money taken out of the economy on the consumer side, and tax revenues from various things associated with the sale of a new car going away.
Yes someone would eventually step in to take over the void left, but how long would that take? What would happen to the pensions? Would there be a delay in health benefits gained? Would those health benefits pay as much?
If the US Auto Industry can break even, while paying back loans, I would be happy. I do believe that if the government is going to bail them out, that they be phased out of the stock market, execs contracts are now null and void for bonuses, and everyone should just be happy they have a job with benefits.
More later on this maybe, for now I am going to do some home projects.
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ORIGINAL: FangsNfeet
The govenrment wants to take over the auto industry. Remember, Uncle Sam now owns 60% of GM. Besides, you just can't let an old friend down. Auto Industries have made several campaign contributions over the years. They are calling in their favors.
The Obama administration is doing everything in its power to stop job loss. No president wants a term where unemployment kept rising.
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