Post by jonnygemini on Dec 5, 2005 13:12:22 GMT -5
via Kentroversy:
kentroversypapers.blogspot.com/
The imminent loss of auto and machine-tool capability in the USA will drag us down to a THIRD-WORLD ECONOMY ...
One of the sad facts of the educational DUMBING-DOWN of the USA is most people's complete lack of understanding of economic issues. This is why I have taken my own expertise as a former Investment Banker and owner and operator of a series of small businesses over the course of the last 29 years, to help people understand the true depth of the problems that currently lie before us.
The imminent loss of the auto-sector in this country goes far beyond the making and selling of autos and trucks. This also produces materials for the military and aerospace industries --- both of which will also fail if the auto-sector is allowed to wither away.
Instead of looking at the enormity of the probelm --- which is understandably overwhelming for many people to think about --- let us take a look at the current CUTS that have been announced by the bankruptcies of GENERAL MOTORS, DELPHI, and FORD MOTOR COMPANY.
Here is what has been recently announced by the auto-sector:
01) GENERAL MOTORS - Bankrupt. Closing of SEVEN production facilities, 30,000 workers affected.
02) DELPHI CORPORATION - Bankrupt. Total negative impact estimated to be $10 BILLION DOLLARS.
03) FORD MOTOR COMPANY - Bankrupt. Closing of FIVE production facilities; 3 in the USA, 1 in each Canada and Mexico. 7,500 workers affected.
The typical average hourly wage for workers in the auto-sector is $27-$30 --- how much do YOU make?
The recently announced GM cuts to these 30,000 workers ALONE represent $1.62 BILLION DOLLARS per year in LOST WAGES that will no longer be a part of the economy. This does not in anyway represent the loss of the plants themselves.
Now, where are these auto-workers going to find replacement jobs? My own best-friend's wife lost her job two years ago, when she turned 50, and was replaced by a much younger person at a much lower wage. Her loss of income was 70% --- and another family is having a hard time paying their mortgage each month. Currently, 22.5% of all home mortgages are currently in some stage of default.
With overtime, each one of these 30,000 GM workers made as much as $50,000 to $80,000 per year. This increases the loss to the economy of $2.4 BILLION DOLLARS per year. This is just for these 30,000 workers alone!
Add the 7,500 workers cut by FORD and the total employee wage loss comes to $3 BILLION DOLLARS per year!
Take a look around you at the kinds of jobs that are available. Are these autoworkers going to work at McDonald's or WAL*MART? The current department manager wage for WAL*MART is about $10 an hour. I have a friend who works there, and this is what her wage stub shows as her wage. Also, all medical insurance comes out of HER OWN pocket!!
The autoworker who goes to WAL*MART is no longer using their own technological abilities, and will see a nearly 70% pay cut, besides.
Keep these things in mind the next time you hear something about automotive manufacturing plants closing down.
kentroversypapers.blogspot.com/
The imminent loss of auto and machine-tool capability in the USA will drag us down to a THIRD-WORLD ECONOMY ...
One of the sad facts of the educational DUMBING-DOWN of the USA is most people's complete lack of understanding of economic issues. This is why I have taken my own expertise as a former Investment Banker and owner and operator of a series of small businesses over the course of the last 29 years, to help people understand the true depth of the problems that currently lie before us.
The imminent loss of the auto-sector in this country goes far beyond the making and selling of autos and trucks. This also produces materials for the military and aerospace industries --- both of which will also fail if the auto-sector is allowed to wither away.
Instead of looking at the enormity of the probelm --- which is understandably overwhelming for many people to think about --- let us take a look at the current CUTS that have been announced by the bankruptcies of GENERAL MOTORS, DELPHI, and FORD MOTOR COMPANY.
Here is what has been recently announced by the auto-sector:
01) GENERAL MOTORS - Bankrupt. Closing of SEVEN production facilities, 30,000 workers affected.
02) DELPHI CORPORATION - Bankrupt. Total negative impact estimated to be $10 BILLION DOLLARS.
03) FORD MOTOR COMPANY - Bankrupt. Closing of FIVE production facilities; 3 in the USA, 1 in each Canada and Mexico. 7,500 workers affected.
The typical average hourly wage for workers in the auto-sector is $27-$30 --- how much do YOU make?
The recently announced GM cuts to these 30,000 workers ALONE represent $1.62 BILLION DOLLARS per year in LOST WAGES that will no longer be a part of the economy. This does not in anyway represent the loss of the plants themselves.
Now, where are these auto-workers going to find replacement jobs? My own best-friend's wife lost her job two years ago, when she turned 50, and was replaced by a much younger person at a much lower wage. Her loss of income was 70% --- and another family is having a hard time paying their mortgage each month. Currently, 22.5% of all home mortgages are currently in some stage of default.
With overtime, each one of these 30,000 GM workers made as much as $50,000 to $80,000 per year. This increases the loss to the economy of $2.4 BILLION DOLLARS per year. This is just for these 30,000 workers alone!
Add the 7,500 workers cut by FORD and the total employee wage loss comes to $3 BILLION DOLLARS per year!
Take a look around you at the kinds of jobs that are available. Are these autoworkers going to work at McDonald's or WAL*MART? The current department manager wage for WAL*MART is about $10 an hour. I have a friend who works there, and this is what her wage stub shows as her wage. Also, all medical insurance comes out of HER OWN pocket!!
The autoworker who goes to WAL*MART is no longer using their own technological abilities, and will see a nearly 70% pay cut, besides.
Keep these things in mind the next time you hear something about automotive manufacturing plants closing down.