Lay-Offs

Ford has announced major cutbacks, laying off 30,000 employees. They're closing a huge plant in my neighborhood (Wixom), and many more around the country. DItto Chrysler, which is cutting 6,000 jobs.

The situation at GM is not any better. Faced with massive losses last year, they, too are cutting jobs. Probably another 30,000.

American manufacturers have trouble competing in this global marketplace with American built products. Why? For a start, $1500 dollars of the price of every car built in America goes to providing health care. Manufacturers in countries with government run health systems (i.e. the rest of the Western world) don't bear that cost. Ford and the others compete profitably in Europe. But not here.

Then there is the small issue of Asian govenment sanctioned currency manipulation, which keeps the value of the yen and yuan artificially low.

Bush has already announced that the automotive industry can't expect any sort of help form the government. (Apparently, unlike the airlines, Big Oil and Big PHARMA, they haven't given enough to the Republicans.....) But that's OK, as Bush's booming economy has created thousands of new service sector jobs! (Click on image to enlarge)