What will be the effects on USA when are auto company(s) go bankrupt or are bought by outsiders? How will this effect security? How will it effect our country when all cars are made else where.
Their is also a labor element here but I will not address it.
2007-01-11 01:42:09 · 5 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
They are currently merging with foriegn car manufacturers. Short term we shouldn't see any problems, long term I'm sure we'll build all cars overseas. It doesn't make much sense to pay some guy $30/hour to put on lug nuts in an assembly line when there are millions of people who'd love to get paid $2/hour to do the same thing.
The only thing that will save us is automation and elimination of a lot of the unskilled union jobs.
2007-01-11 01:47:56 · answer #1 · answered by The Man 5 · 0⤊ 1⤋
its called reduced cash flow, so many people forget that concept, and the fact that is the biggest thing that an economy depends on.
if you stop paying a guy $30 an hour to put lugs nuts on, and start paying a guy over seas, $2 an hour to do the same job, just for putting lug nuts on, you lose $32 an hour of cash flow here at home.
now this has a snow-ball effect, because that $32 isn't being spent to purchase other goods and sevrices, so it reduces the income of every business in the area. not by a considerable amount, but when you are talk 34,000 jobs like our car dealers are getting ready to can in the next month, it adds up quick.
it seems people easily forget about the fact that most smaller towns, are built around plants that provide most of the job, and they quickly become ghost towns when the factories move or go out of business.
So no one can say it will not have consequences to the surrounding businesses, and community. IT DOES.
2007-01-11 10:05:48 · answer #2 · answered by qncyguy21 6 · 1⤊ 1⤋
Well, they won't go bankrupt. They will be built it other countries though. The greed of the UAW will make sure of that.
2007-01-11 09:45:52 · answer #3 · answered by Anonymous · 0⤊ 2⤋
the us government will subsidize them up the wazoo. "free market"... yea right.
and hondas, toyotas, etc. are for the most part made in america, by americans. they don't assemble all those cars in asia and then cart them across the ocean.
2007-01-11 10:05:48 · answer #4 · answered by Crystal P 4 · 0⤊ 2⤋
I think the gov't, no matter who is in office, will bail them out.
2007-01-11 09:46:35 · answer #5 · answered by Wig 3 · 1⤊ 0⤋