Spring Break
The Big Three: Jobs still at stake in Middle America
Scott Conover
Issue date: 11/21/08 Section: Forum
For instance, according to the U.S. Bureau of Labor Statistics, 9.2 percent of all employment was in the commercial and service manufacturing industry. However, the metalworking machinery manufacturing industry employs 16.8 percent of the U.S. workforce. The metalworking machinery manufacturing industry, according to bls.gov, "makes machinery that forms metal in its molten state and that cuts or shapes metal as a solid." How does this industry influence car manufacturers? Does metal-shaping equipment come into play for auto manufacturing? U.S. auto manufacturers are likely supplied by other companies in the metalworking machinery manufacturing industry, thus fulfilling demand and thereby employing people in support roles.
When a main industry is affected in a major way, other support roles can be damaged or even eliminated. Assuming that these support roles are connected in conjunction with the U.S. auto industry, it is possible that many jobs, which previously supported American auto manufacturers, could be eliminated. Assuming a simple rule of thumb of 10 support roles per worker, this could equate to more than three million support jobs being eliminated.
According www.detnews.com, the Department of Energy was willing to provide 25 billion dollars to the Big Three and their suppliers in the form of low-interest loans. The Wall Street Journal reported on Aug. 21 that Barack Obama recently signaled that he's open to federal money to help the auto makers invest in renewable technology, and Michigan Senator Debbie Stabenow and Mr. Dingell are supporting the $25 billion in loans to the not-so-Big Three as part of a second-round economic "stimulus."
However, on Thursday The Associated Press reported that U.S. Congress has suspended the talks until they receive a business plan from the Big Three. The White house has already signaled that they will sign off on a 25 billion dollar loan to the Big Three from the Department of Energy to produce more efficient vehicles. No matter how it works, it is a loan to the Big Three to get themselves in order. In order to prevent layoffs around Christmas, something must be done to prevent the complete breakdown of these American companies. The loan is the current solution, the temporary balance stricken to carry the Big Three through the winter and into the coming spring.
When a main industry is affected in a major way, other support roles can be damaged or even eliminated. Assuming that these support roles are connected in conjunction with the U.S. auto industry, it is possible that many jobs, which previously supported American auto manufacturers, could be eliminated. Assuming a simple rule of thumb of 10 support roles per worker, this could equate to more than three million support jobs being eliminated.
According www.detnews.com, the Department of Energy was willing to provide 25 billion dollars to the Big Three and their suppliers in the form of low-interest loans. The Wall Street Journal reported on Aug. 21 that Barack Obama recently signaled that he's open to federal money to help the auto makers invest in renewable technology, and Michigan Senator Debbie Stabenow and Mr. Dingell are supporting the $25 billion in loans to the not-so-Big Three as part of a second-round economic "stimulus."
However, on Thursday The Associated Press reported that U.S. Congress has suspended the talks until they receive a business plan from the Big Three. The White house has already signaled that they will sign off on a 25 billion dollar loan to the Big Three from the Department of Energy to produce more efficient vehicles. No matter how it works, it is a loan to the Big Three to get themselves in order. In order to prevent layoffs around Christmas, something must be done to prevent the complete breakdown of these American companies. The loan is the current solution, the temporary balance stricken to carry the Big Three through the winter and into the coming spring.
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Stephen
Stephen
posted 11/26/08 @ 2:58 PM PST
It certainly seems like any way you go with the matter of the Big Three, there are going to be sacrifices. Letting them fail will cause the immediate loss of thousands of jobs. (Continued…)
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