General Motors Job Loss: Don’t Believe It
Submitted by Businomics Blog
If General Motors is allowed to fail, won’t we lose three million jobs? That multi-million job loss comes from both GM’s own employees, plus the suppliers and dealers. However, the economics behind that idea is pretty bogus.
The number of auto jobs we have is tied to the volume of cars we produce and sell in the
. If GM fails and then the economy recovers, the jobs will recover. They may not be GM jobs. They may well be Honda or
jobs, but still located here in the
.
Or consider the alternative: that after GM fails, car demand never recovers. In that case, subsidies to GM continue forever. The
taxpayers continue to do what GM has done for so long: pay auto “workers” to not work.
It is possible to produce high quality cars fairly inexpensively, and in
. The Japanese companies do it. GM cannot. If GM fails, someone else will take up the slack.
