Monday, March 30, 2009

If the auto industry fails, would it kill the black middle class?

I'm supposed to be on vacation, but I had to make one post.

The Obama administration has told the auto industry that it doesn't think their plans to stay afloat will work. They have a few weeks to get their act together if they want more help from the government.

I used to be against giving any tax dollars to the automakers, until I was on a radio show where the point was brought up that the auto industry, more than any other single business, was responsible for moving blue-collar African-Americans into the middle class. Of course, a lot of those manufacturing jobs are now gone, but many people, especially in the Midwest and some southern states, still depend on those jobs.

So what's your take? Should the government make sure GM and Chrysler stay afloat like they've done for banks? Should people who still depend on the car industry for jobs hang on or start looking for modern opportunities?

4 comments:

Mia6998 said...

Kinda funny related story. My Mom worked in electronic manufacturing...she was laid off a week ago...that's not the funny part. But when my Mom met my ex-boyfriends Dad and we were in a Bose store she said "I make the inside of that." The display was a Bose system broken apart to show it's inner workings. He said, "Jobs like those still exist in the United States." Point of my story is that you have to change with the times.

So my ex's Dad is in specialty printing to stay "relevant" he is now taking InDesign classes at night. The man is in his late 50's/early 60's. So now that my Mom has gotten laid off, she wants to take computer classes.

Lechelle said...

It is a shame that all of the manufacturing jobs have left (or leaving) the US. We can't just be a service nation. We need more opportunities available for all individuals.

At first I was against the government helping the auto industry, but when I thought about all the pension that would/could be lost I have compassion now.

However, I strongly belief the auto industry needs a u-haul. From the executives salaries to the union; all parties needs to bend a little.

Mary said...

Hmm... I don't know where I stand. I feel like the difference btw the bank and the auto company is: Potentially given enough resources and the right strategy the banks can rebound, the credit market will defrost and pple will once again be able to get the money they need to finance their needs wants etc.

In terms of cars no matter how much money you pump into that industry there is no guarantee on your ROI. People are not buying cars. Perhaps the big three should consider a big merger.

Sanglucci said...

Keith man I overheard Obama's address about GM that same day in the morning. He was talking about if you buy a new car or have an existing one through GM and for some reason or another GM breaks up; your warranty will be somehow BACKED by the Federal Gov't. He said that your repairs will still get taken care of and your warranties will be handled by the gov't! How will that work??? We're now backing car warranties? It's kind of unbelievable at this point...