(http://www.cbc.ca/canada/story/2008/12/16/jobs-auto.html)
A report that the Ontario Manufacturing Council was brought down today, stating that if the auto industry was to be let go and left to be consumed by the invisible mouth of market correction there would be an immediate 323 000 jobs lost as well as another 200 000+ over the next 5 years. Huge sectors of the auto-economy would crumble, resulting in 80% of the auto parts industry disappearing from now until 2014. That is a ridiculous number, almost unfathomable really. One half of one million people would lose their jobs, mulitply that by those half-million family members and you have a catastrophic number of people out of a job. The effects would be devastating.
I dont know much about economics, but I dont think you have to in a situation like this one.
The job losses are compounded by the ripple effects that they would cause. Hundreds of millions of dollars in tax revenue lost from these 500 000 wages no longer being paid out, corporate taxes that are not available to collect from the Detroit 3, the economic losses from decreased spending and purchasing. It will be a nightmare if Big Auto collapses.
But as I am reading through the comments on the CBC article, I came across a very interesting take on the whole thing;
'There's no guarantee anywhere in the United States or Canada for these Canadian jobs... even with the bailout. Flaherty has been whistling in the dark he too doesn't know what to do to keep the legs under Ontario's economy. The US economy is tanked... and the Lesser Depression is upon them and the world. Even Obama said they are in never-before-land. You can't get lower than 0% interest rates unless you pay people to borrow. If this blog were interested in listening to what Canada could do - I might try offering my suggestion. Here goes for the third try:
I think that there is a goldrush awaiting those who would re-furbish existing automobiles and trucks with newly developed engines and power trains. The assembly line run in reverse would make billions and re-employ the existing auto workers. And if we could ask the Big Three to take a one or two year sabattical from useless manufacturing, they could re-tool, re-train and regain our confidence that we can still roll on their wheels. The 0% Interest rate is an admission that the US has slid into a Depression. To get out they will be looking for ways to do their own auto parts manufacturing - along with other manufacturing jobs they farm out to us. Our Loonie will flip over just as fast as it took a dive....in which case it will price us out when reality checks in. Only a war-time economy is going to save our standard of living... because what happens from now on requires swift and decisive action on the part of government and business. Are the Conservatives and Co-alitionites paying attention? Don't make new dinoautos... re-tool the previous years models. Tough times... tough decisions. Do we make Ford/GM/Chryler engines in Canada? Drop everything else... apply the newest technology and start putting them in todays rolling stock.' - written by: Jakespeare
This guy hit it right on the head. I am a major proponent, especially after this recent report, of providing some sort of security for the auto workers whos heads are on the chopping block - but I do agree that the archaic petrol guzzlers that have been churned out model after model need to be curtailed. I lived in Europe for the better end of a year, I have spent probably twice that traveling throughout the continent, and one thing that always baffled me was their lack of huge Super-Charged pickups and battering ram-vehicles. Why do we need these massive trucks and vans? I have started to diliberately take notice of those driving large pickups and heavy vehicles to see if they are really using them the way they are intended to be used. A good many of the trucks are what I would consider 'luxury' pickups, those that are not work or transport vehicles driven by blue collar types, but instead are being driven by men who have never done any physical labouring, women who are driving their kids to school, or douchebag teenagers who drive trucks to be hip.
That could be an unfair generalisation though...
But the pearl of that post was putting a hiatus on the production of new cars and putting all of their efforts in the refurbishing of existing stock. This could be used for installing new greener technology engines into these older model cars, meaning that the jobs can be retained on the lines while at the same time taking big leaps forward for environmental damage control, and further facilitating economic growth by everyone saving at the pumps. War time economics 101.
Another big thing that we can do regarding the auto industry is to implement some, *gasp*, protectionist policies regarding the import of foreign vehicles. That is paramount to our crappy North American car companies success. We live in Canada, for Christsake, lets monopolize the shit out of the auto industry in this country! Auto Canada, here we come! Make it much more accessible for Canadians to buy Canadian-made vehicles that are better for the economy and the environment, and restrict the availability of foreign made cars on the Canadian marketplace.
Ahh... when I am Prime Minister for life.. things will be so much simpler.
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