News, Study: Auto industry failure would hit Tenn. hard. (Memphis: loan, employment)

[JD59]

Tennessee would be one of the hardest hit state’s if the U.S. auto industry were to fail, according to a new study by the Economic Policy Institute.

The state could loose up to 106,400 jobs, or 4 percent of its workforce, according to the study by Robert Scott, senior international economist with the Washington D.C.-based nonprofit think tank.

Study: Auto industry failure would hit Tenn. hard - Nashville Business Journal:

[hiknapster]

Yeah. Go Bob Corker!

[jabogitlu]

I never understood what in the world Corker thought he was doing, and this article underlines my concerns. Good thing we elected such an idiot!

[JMT]

If this is to become a political thread, shouldn't it be moved to the Politics forum? I'd be happy to chime in on why Bob Corker was right on, but it would not be in the spirit of the OP.

[hiknapster]

Originally Posted by JMT

If this is to become a political thread, shouldn't it be moved to the Politics forum? I'd be happy to chime in on why Bob Corker was right on, but it would not be in the spirit of the OP.

I would love to gently debate with you, since we are friends.

Do I believe in bailing out any corporation? No. This is suppose to be a capitalistic society. But we are bailing out money sucking corporations on Wall Street. Look at AIG. They got federal bailout money, went on a corporate retreat - complete with massages and drinks with little umbrellas in them - came back, and got more money even after we found out about their holiday.

The biggest problem is Hank Paulson keeps throwing money at everything like a drunken sailor.

So, at this point we already own an awful lot of Wall Street, especially their worthless paper that was bought for billions. That started the takeover of corporations as we rapidly march to the China drumbeat.

You said in another post that Denso of Knoxville is always expanding. Not anymore. They make CAR PARTS. And that means people out of work that won't be able to buy cable or send their kid to college.

Oh, this will keep rolling and trickle down to everyone.

Maybe The Big Three will file bankruptcy and it will all work out, but don't count on it. Do you want to buy a car from a company in bankruptcy? What happens to that extended warranty?

Next up: The Great Depression 2009. It started with Nixon establishing for-profit healthcare and making friends with China. And we said that was the best thing that he ever did. What a bunch of tools we are, aren't we?

I guess Corker figured that he was saving Tennessee when he screwed Michigan. But he didn't, because we are all going to pay. He lied to the union's face and then talked to the cameras out of the other side of his face.

He thought he was union busting and that would be good for his state. He was short-sighted. I guess he wants his constituents to work at non-union jobs for lower wages for a non-American company.

Heil Volkswagen!

[JMT]

Sorry, I couldn't disagree with you more.

If GM, Chrysler, and Ford were the only ones manufacturing cars, I might feel differently. But there are all kinds of options out there, and if the Big Three go out of business, it doesn't mean catastrophe. Oh it'll be catastrophic in places like Flint, but not in places like San Antonio.

Why should we subsidize businesses that make a product that clearly people don't want? Why should we subsidize manufactuers who supply parts to the Big Three? I thought corporate welfare was wrong. I thought big corporations were evil. At least that's what people on the Left have been spouting.

Let's not forget that ol' Barney Frank is knee-deep in the Wall Street crisis. Five years ago President Bush DID propose some strict government oversight of Freddie and Fannie which the New York Times said was "the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago." What was Mr. Frank's reaction?

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

--New York Times, September 11, 2003

Thanks for your keen insight, Representative Frank.

Jimmy Carter--bless his heart--bailed out Chrysler before. Now Chrysler is back asking for more. Why is that?

GM and Toyota sold the same amount of cars last year, 9.37 million each. Toyota made billions in profits, GM had billions in losses.

There is nothing wrong with declaring bankruptcy. Airlines have done it, people kept buying plane tickets, and the airlines emerged leaner and more competitive. Some airlines had to shut down (like Eastern, where my dad used to work) but those airlines' employees found jobs elsewhere (like my dad).

Buggy manufacturers didn't whine that they were being put out of business by new-fangled automobiles. Packard and Hudson didn't go running to the government to bail them out when they could no longer compete. I'm sure things were hard for some people, but eventually the country got over it and grew stronger.

Besides, if one company goes under, another company will take up the slack. If Food City were to go out of business, it won't stop anyone from buying food. If GM shuts down, it won't stop anyone from buying cars. Someone will pick up the slack. Denso could easily provide parts to a different manufacturer. They're probably ready to do that anyway particularly since it's a Japanese company.

[scarletneon]

i just wanted to stop in and say EWWW BOB CORKER.

i absolutely did not vote for that man.

On topic, Columbia would DIE if the GM plant shut down for good. Much of Spring Hill, i believe, has commuters to Cool Springs and Nashville, but what little success Columbia has had thanks to Saturn/GM would whittle away pretty quickly.

[plipford]

I want to warn everyone, I am a strict Constitutionalist. This means that I strictly interpret the Constitution of the United States Of America.

The Constitution does not support the Federal bailouts, or economic stimulus packages that are currently under discussion.

Examine the Constitution and the amendments.

IMHO, the politicians are giving taxpayer money to business, for favors in the future.

A better economic stimulus would be a Federal tax holiday, as proposed by Representative Louis Gohmert.

[leonard]

Originally Posted by JMT

Sorry, I couldn't disagree with you more.

If GM, Chrysler, and Ford were the only ones manufacturing cars, I might feel differently. But there are all kinds of options out there, and if the Big Three go out of business, it doesn't mean catastrophe. Oh it'll be catastrophic in places like Flint, but not in places like San Antonio.

I am in the auto industry. Not OEM, though my products are used there.

If the big 3 go into bankruptcy it will impact millions of jobs. Already we have seen a big drop in our business and it is not directly tied to the auto makers.

If they fail virtually every parts supplier will also, as they built their business on volume and if the volume drops they do not make enough. One company in Nashville is already laying off workers as they see their OEM work dry up. Then the companies that supply raw materials will fail as their volume drops. Remember the OEM's have squeezed the parts suppliers so tight that any drop in volume makes it impossible to make the parts at the needed price. It is not possible for a new leaner company to step in and fill the requirements as it requires vast resources and plants, etc. Not enough time for it to help.

Then is the business who see business from the workers, such as restaurants, etc. Then the auto parts outlets as no parts are available to such as Auto Zone etc. Then Toyota and Honda can't get parts as they suppliers close their doors due to too low a volume of orders. It is a BIG snowball or better yet an avalanche, waiting to break free and roar down hill destroying everything in it's path.

It won't just be Flint, it will be San Antonio, Nashville, Memphis, Knoxville, Chattanooga and every city in the entire USA and Canada and for good measure Mexico.

While I do not care for the bail out, loan actually, the alternative is even worse. Of course propping up the auto industry does not help the real problem. There are not enough people who want to or can afford to or are willing to, spend/borrow to buy enough new cars to save the industry.

It is a perfect example of the Biblical thought that man cannot direct even his own steps.

Better get used to walking to the employment office.

[JMT]

Oh I'm not denying that there won't be any short-term effects. But I refuse to believe that our entire economy will collapse if the UAW doesn't get its way.