Economy
GM, Anomaly or the Norm?
Is General Motors the anomaly or the norm in modern America? Many American companies have lost market share while decrying that their sales our down in North America. When you layoff your employees you effectively eliminate many potential buyers of your product. If we do not build it how can we afford to buy it? Many companies have eliminated positions in North America thinking the average man will find employment with the next guy. However, this is being found to not be the case.
You can build a product half way around the world for pennies on the dollar but when you lay off a good paying employee you are effectively reducing your sales, the off-shore, or outsourced, employee who is working for pennies on the dollar will never be able to afford your product at its sales price. Therefore I propose the following question, “When no one is working, who is buying?”
The question seems simple enough yet many CEO’s, who think outsourcing is the magic pill, are finding out that by dwindling their workforce they are effectively eliminating their sales base. Now what can be done, the trend is beginning to reverse and many employers are starting to see they need American workers to keep the American market stable to a point where they can regularly sell their product. Many say buy American yet they backdoor out the job to a foreign company. The new consumers are now looking at the labels and making informed decisions. If Toyota and Honda are building here in America, and Ford and GM are building it in 7 remote countries, which is the real American made product? I think you now know the answer to the question.
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I agree with you that when you eliminate positions you also eliminate customers. I feel that there should be a good balance as well as a fair wage paid. I understand that working the line in an auto factory can be tough but there are also many times where there are four or five people sitting around for almost 50% of the day. I think a third party individual should come in and survey the wrok and adjust just how many workers are truly needed. Eliminate the union and employees bias and see what you get.
I believe Shareefa that American businesses are beginning to understand the law of supply and demand and that if there is no demand we need no supply. Hopefully the economics of bad contracts and wrong decisions gets rectified and we rebuild the strongest consumer base in the world. America is the number one consuming nation in the world, that should lead us to believe we should be the number one workers in the wrold.