Quote:
Originally Posted by The Dad Fisherman
Don't think you need to go overseas for that.....if they file for bankruptcy and terminate the union contract they can still get quality labor at a quality wage right here.
no reason they couldn't hire new workers at a rate thats competitive and keep the jobs here.
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Manufacturing in general, not just autos, is a dying industry in the US. Latest GDP puts manufacturing around 12%, I believe. Back in the "day" 1950's it was closer to 30%.
A market economy will eventually correct the labor issue on its own. Cheaper goods made at higher quality(Toyota) will eventually command the lion's share of manufacturing dollars, whether the stuff is made here or abroad. Companies that don't adapt to cost cutting and turning profits are obviously going down. The trend seems to be going abroad for everything. The feds throwing money at it is more of a "feel good" thing than a solution for our lost competitive edge.
United States to me is more about innovation/technology and providing services versus "making" things. Pretty sure these numbers fetch close to 80% of our GDP right now too.
I predict the new administration will throw large sums of money at the big three, only to watch them go bankrupt by mid summer. Long term its probably a good thing as it forces us to innovate and become more competitive. Short term many good people will be out of jobs. That's a free market system for you.
It takes considerable time to implment any meaningful change to companies of this size. Don't forget we're in a period of low consumer demand, meaning there's nobody ready to step up and buy these products even if changes are made for the better. I think the hour glass is empty for these companies.
