Today I read an article about the General Motor Company’s economic crisis. The article read “SUV Deathwatch: GM Shuts Down More Plants, Sheds Thousands of Jobs.” As I read more into it, I began to realize that GM’s decision to make their key market the SUV market is doing way more than just tanking there company finances. They are killing Middle America, and sending the American economy down with them.
So with the new gas crisis at hand, it’s obvious that GM’s decision to focus on the SUV (gas-guzzling) market was anything but a smart move. It is because of this that the company will close two SUV plants in the states of Wisconsin and Ohio on December 23, 2008. This closure will create a job loss of about 2,500. They are also shutting down a stamping plant in Michigan at the end of 2009. This shutting down will create a job loss of about 1,340.
When you look at these numbers and think about who are loosing these jobs it’s fairly obvious to see that it’s the middle class Americans that are suffering. The middle class is the largest group in the United States. I think we can all agree that increasing percentages of unemployment among the largest group in the United States cannot be good for our economy.
Now, forget, unemployment, General Motors owns Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. That is a large number of companies that make up basically all of the American-made cars (other than Ford, which is also going downhill). So, again, it is fairly obvious to see that all these companies being shut down is horrible for our economy because, after all, cars are one of the largest world markets.
In conclusion, I believe that this General Motors shut down is going to have a huge effect, not only on our economy but also on the life’s of Americans all over the country. I believe that our government needs to treat it like the priority it is because of the impact the General Motor company has on America.
1 comment:
You have a lot of information in this post. Are you saying that the federal government should bail out GM by giving it billions of dollars in spite of the bad decisions the company made--as you describe them here? Your own position on a bailout isn't clear. And if you are for it, how do you reconcile it with the failure of GM to have made smart marketing decisions and responsible energy decisions?
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