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Over 50 years ago
there was an axiom that stated, "As GM goes, so goes
America". It was also phrased, "What is good for GM
is good for America". Another variation of this
truism was, "What's good for GM is good for
America". |
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Today the axiom must
be restated for accuracy. It now accurately is,
"What harms GM, harms America". |
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Nationwide, over 7.2
million jobs are related to the US auto industry in
supply and manufacturing, in health care, education,
civil services, support businesses such as
recreation and restaurants. Hundreds of
municipalities rely for tax revenues on cash flow
from the auto companies and their workers. There are
additional businesses and activities throughout the
rippling economy that rely on the American auto
industry. |
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America's auto
industry is being reduced in size in all aspects
from its dealer count to its brand and model counts.
Its management is being replaced by government
bureaucrats who know little about cars and care less. |
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Americans
stand on the sidelines as their jobs and their
precious auto industry is being hijacked. The entire
auto industry is being stolen by America's renegade,
out-of-control, free-wheeling government. Once the
US auto industry and all its adjunct industries are
controlled by government, auto manufacturing will
focus on small, green cars that most Americans have
demonstrated they do not want to drive. |
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It is estimated that
the portion of Americans who want small, green cars
is nearing saturation. It appears that approximately
two out of three Americans who want this sort of car
already have one. Fleets filled with small, green
cars will not sell to Americans. Foreign-owned car
companies will gain larger US market share by
providing larger, more safe and comfortable cars
that Americans desire. |
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Government will
likely assess a large tax on gasoline in its
attempt to force Americans into small, green cars.
This is doomed since Americans still believe
themselves free to consume the products they
want. Americans will adjust their budgets and
driving habits to continue buying safer, powerful,
more comfortable cars primarily manufactured by
foreign-owned companies. |
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Over time US car
production will shift further than it has over the
last decades from American-owned to foreign-owned
car companies. |
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Non-American
companies will replace American auto and supplier
manufacturing companies. |
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Eventually most
formerly UAW
members will work for foreign-owned car companies --
and not as union members. |
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Foreign-owned car
companies don't fancy allowing unions in their
facilities. Foreign-owned car companies understand
the American worker. That is why they provide good
benefits and services for their American workers.
They know that if they fail to, they will be forced
to accept unions on their shop floors. The UAW and
related unions are doomed. They will shrink in
membership. |
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England enjoyed a
large innovative auto manufacturing industry until
around 1960. When other nations started producing
better cars (that did not rust into piles of red
dust) England's auto industry vanished through
bankruptcy and sale to foreign companies. |
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Rolls Royce is now
German-owned. Triumph and MG are little more than
fondly-remembered marques. Today England has no
domestic-owned auto companies. All of England's auto
manufacturing is foreign-owned. That means that all
of England's auto workers work for foreign
companies. |
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Today approximately
61% of all business and commercial activity in
England is government operated. That is, England's
government operates and controls much of England's
GDP. What products do you buy from England other
than rock music? |
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England is now at
risk of losing its AAA rating, the top-tier credit rating. Standard
& Poor's has downgraded its outlook to negative from
stable. S&P cited a sharp deterioration in England's
public finances as cause. |
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Yet recently
England has been tightening its fiscal budget. Still
England's overall debt burden is approaching 100% of
its GDP. S&P estimates that England's debt will stay
near that level for the medium term. |
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Today's American
axiom is, "As England has gone, so America is
going". |