GM to lay off 3,500 at truck, SUV factories

[Peikko 1,575]

Oh, we could indeed still have factories in Detroit if people would only work for $5 per hour. Wouldn't that be great all around?

Actually, I am guessing these days it might even be less than $5 per hour because raw materials and power are so expensive.

[Peikko 1,575]

While we're about it, we could get rid of decent working conditions too, that costs cash. What about regulated hours as well? Now we're getting there, we should be able to compete if the factories don't have to control pollution, don't have to pay a living wage and don't have to bother to worry if the workers die or get injured on the job. Hurrah, problem solved.

[SMOKE 1,426]

i think somebody needs a xannax.

[rebeccajo 14]

I think somebody needs to take a toodle over to Asia and look at the non-union auto factories who provide decent wages and clean working conditions, and then suggest that those same things (which the unions had to lobby for in America) are now 'sinking' the Asian auto market.

[Peikko 1,575]

I don't need calming, I am serene. However, I would love for someone to demonstrate how the US economy is really going to recover. That'd be quite the show. Edited April 29, 2008 by Purple_Hibiscus

[BishopMnA 0]

While we're about it, we could get rid of decent working conditions too, that costs cash. What about regulated hours as well? Now we're getting there, we should be able to compete if the factories don't have to control pollution, don't have to pay a living wage and don't have to bother to worry if the workers die or get injured on the job. Hurrah, problem solved.

Working condition/regulated hours/polution control/etc are all now controlled by goverment agencies which enforce their compliance.

Unlike in the 1950s/60s, unions no longer control these arenas. At that time, unions were definitely needed to protect the workers and they served well in that purpose. Now, they have outlived their usefulness and instead are just adding cost to their end products, which...like you say...they can now no longer afford.

Peace,

MarkNAam

[Peikko 1,575]

Someone has to figure out a sustainable economy. There isn't going to be rapid growth in the US again, not unless we are sitting on some wonderful commodity that hasn't yet been discovered.

[BishopMnA 0]

I don't need calming, I am serene. However, I would love for someone to demonstrate how the US economy is really going to recover. That'd be quite the show.

I'm certainly not intelligent enough to know how the US economy is going to recover, but building upon the Detroit situation, it would seem that America needs to eliminate the protectionist policies which have been in place, and which are largely driven by union lobbyists. We (America) need to learn some tough lessons about how to compete on a global scale. If we can't do that, then we won't be able to revamp our economy.

Detroit based automakers are a prime example of protectionism gone bad. I hope it can recover...or that the rest of America can learn from the example.

Peace,

MarkNAAm

[Heracles 417]

I don't need calming, I am serene. However, I would love for someone to demonstrate how the US economy is really going to recover. That'd be quite the show.

I'm certainly not intelligent enough to know how the US economy is going to recover, but building upon the Detroit situation, it would seem that America needs to eliminate the protectionist policies which have been in place, and which are largely driven by union lobbyists. We (America) need to learn some tough lessons about how to compete on a global scale. If we can't do that, then we won't be able to revamp our economy.

Detroit based automakers are a prime example of protectionism gone bad. I hope it can recover...or that the rest of America can learn from the example.

Peace,

MarkNAAm

Not only Detroit. The us aviation industry is going down the same path. The commonality in both of these industries is unreasonable demands and protectionist attitudes by unions. Try firing a poor performing worker in either industry. Simply not going to happen. This also applies in a lot of other industries where the unions basically protects poor performing workers at the expense of everyone else.

[Peikko 1,575]

Well, that's one way of looking at it. However, if another country can produce the same or similar goods significantly cheaper because they don't have to pay like for like wages I think the chances are the industry is ###### regardless of protectionism. What the US used to have was the ability to get raw materials at very low prices and little to no competition. Things change.

[mawilson 2,133]

Well, that's one way of looking at it. However, if another country can produce the same or similar goods significantly cheaper because they don't have to pay like for like wages I think the chances are the industry is ###### regardless of protectionism. What the US used to have was the ability to get raw materials at very low prices and little to no competition. Things change.

That's where you're wrong. Impose high tariffs on car imports and the industry is going to be just fine.

[Peikko 1,575]

You don't think those countries that have high tariffs imposed on their imports might not 'retaliate' in some way? The US can try it of course, but the US relies heavily on imports, not least for raw materials so the negative effect might prove more costly than losing the industry the US is trying to protect.

Edited April 29, 2008 by Purple_Hibiscus

[mawilson 2,133]

You don't think those countries that have high tariffs imposed on their imports might not 'retaliate' in some way?

"Those countries" like Japan?

There's more protectionism in Japan than anywhere else in the world.

We're talking about a country where the agriculture minister once famously argued that

Japanese intestines were longer than those of Americans and therefore had trouble

digesting US beef. Country that imposed restrictions on imports of European skis

because "Japanese snow is different".

Their market is already as restricted as can be - there's not much Japan can do to hurt

the US without hurting themselves more.

[Peikko 1,575]

I like their thinking.

[Peikko 1,575]

Seriously though, the biggest problem the US had was not changing the emphasis from large, fuel guzzling but powerful and fun cars to small and mid sized fuel efficient cars after the 1970's. Japan and Germany did, so they now have the more marketable product globally. The Unions can't be blamed for the manufacturer's decisions regarding what product lines to manufacture.

Edited April 29, 2008 by Purple_Hibiscus