Date registered: Apr 2004
Location: The BlueGrass State
Mentioned: 0 Post(s)
Quoted: 2 Post(s)
As a somewhat micro example of what to expect if the Big Three are simply allowed to die, let's look at Dayton. Right now Dayton has a 7.8% unemployment rate as work has slowed down at the GM Moraine Assembly Blazer/Envoy plant [reduction of 3rd shift in 2006]. It will be closed completely on Christmas week, this year. Ancillary businesses have dropped by 18% since the 3rd shift closure. By March 2009, the Dayton Metropolitan Statistical Area is expected to lose another 12,000 jobs as suppliers and shippers leave. Between 2001 and 2007 Dayton lost 25,000 [30%] jobs in the manufacturing sector. No NEW businesses have come in to absorb those workers.
So of the 800,000 residents in the Dayton area, this ONE plant closing is directly responsible for the loss of 5% of the Dayton Metropolitan Statistical Area's workforce. When you discount youth and retired folks, the working population is 480,000. They have lost [or KNOWN to be losing] 8.3% just from that one plant.
The tertiary layoffs will come sometime after December after the major's close their doors and add to the mix.
And the Moraine plant ONLY has a worker population of 1,500. The total blue, white and pink collar population of the US Auto Industry in just under 750,000. Extrapolate the numbers for that "just let them die".
Then figure out the costs associated with that total.
Being smart is knowing the difference, in a sticky situation between a well delivered anecdote and a well delivered antidote - bear.