Wednesday, July 24, 2013

The Problem in Detroit....

To build on what I posted earlier today……(I feel like rambling more)

In 1955 General Motors employed 576,667 workers and sold more then half the cars in the United States. 

Add in all their suppliers and GM helped employ over 3 million people. They were the economic engine of the country. 

Then one day they decided they could do better by eliminating US jobs. Getting rid of high priced American workers would bring "efficiency", and make a more profitable company.

We were told outsourcing jobs would magically create new jobs. So off they all went by the tens of thousands.

The results were not growth or prosperity for GM. Shocking I know…..

Today GM employs 204,000 workers but only 70,000 are in the United States. As a result today Toyota is the number 1 car company in the world. Congrats General Motors….. you screwed up. These days GM is down to 20% of all car sales and is fresh out of bankruptcy.

Outsourcing failed. Less US employees didn’t lead to greater successes, or sales, or profits.

Now the city of Detroit is officially bankrupt too. Yay…. strike up the band.

This story isn’t exclusive to General Motors either. I don’t have time to tell you what Ford and Chrysler did to Detroit as well.

You could plug this same story into hundreds of companies and the results are always the same. Everybody loses. The workers lose. The company loses. The country loses.

Yet the failed strategy continues on as companies try (as hard as they can) to get rid of US workers. Public enemy #1 (for all corporations) is US workers. They hate them. They want to get rid of them as fast as possible.

Even though this strategy (always) ends poorly they are too stupid to see the reality.

Republicans help perpetuate the lunacy, as do the Democrats.

The “experts” say we are in a global economy and eventually it will all work out. Yet it never does. Michael Moore made “Roger and Me” About the demise of GM (and Detroit) in 1989. It is now 24 years later and nothing has improved. It is much worse.

We were told it is just the Eb and Flow of how Capitalism works. Sometimes it is up and sometimes it is down.

If you really look at our economy, and you remove the Internet Bubble from 1995 to 1999. Remove the Housing bubble from 2000 to 2006 you realize the economy has been on steady deterioration for over 20 years. In 1992 it was “The Economy Stupid” and today it still is.

We were told tax breaks for the rich would create jobs. But they didn’t.
We were told interest rates at 0% would create jobs. But they didn’t.
We were told 800 Billion in Stimulus would create jobs. But it didn’t.
We were told $300.00 rebate checks would create jobs. But they didn’t.
We were told deregulation would create jobs. But it didn’t.
We were told Free trade would create US jobs. But it didn’t.
We were told Quantitative easing (all three rounds) would create jobs. But it hasn’t.
We were told green jobs would be the US jobs of the future. (Get ready to start building wind mills) But they weren’t.

The government went 16 trillion into debt and that also didn’t create jobs either.

In the old days war used to create jobs. Well we have had two of them (spent over trillion bucks) and still no jobs.

There really is nothing left to try. It has all failed (and will continue to fail) as long as every product (in every store) continues to say Made in China.

As long as the standard policy of all corporations is to get rid of their US employees then this will never get better.

People can admire the stock market at 15,500 (and think happy thoughts) but as soon as the government takes the nipple away down that will go too. It is all just a bunch of fiction.

Maybe now and again a bubble will give the illusion of improvement but the reality is the steady decline will continue.

As I said earlier.....Detroit is just the beginning.

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