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How does this stimulate the economy?

It looks the UAW has come to an agreement with GM that will satisfy the requirements needed for it to reorganize. However, I just don't see how this plan is supposed to benefit the economy. 1) GM has 54,0000 union workers with plans to permanently lay off 21,000. So that is 21,000 people who will be out of a job, added to the current thousands already unemployed. 2) The union workers have agreed to concessions on wages and benefits--that will benefit only the 33,000 remaining employees meaning they will be bringing home less money. 3) GM is scaling back production and brands, which means people working for smaller companies supplying GM will likely lose jobs and that also adds to unemployment and bankruptcy filings because they won't have GM contracts anymore. What good does it do to produce vehicles that people can't afford to buy? Do you think that this is just postponing the inevitable further?

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Anonymous

Asked by Anonymous at 3:32 PM on May. 29, 2009 in Politics & Current Events

Answers (19)
  • Do you think that this is just postponing the inevitable further? yup
    Anonymous

    Answer by Anonymous at 3:34 PM on May. 29, 2009

  • I thought it was to help people keep their jobs and maybe hire more, but if they still plan on laying people off then I don't see how it helps!!
    Anonymous

    Answer by Anonymous at 3:38 PM on May. 29, 2009

  • It's not going to at all. I don't think they say it will. I thought they wanted to keep people working and that is the sole reason they are taking control. Of course I'm sure just as many or more will lose their jobs but government has the control they want. I suggest you don't buy Chrysler or GM because the Govt will try and give bigger discounts and better perks (all from your wallet of course) and Ford will have a hard time keeping in business. It's all so sad.
    itsmesteph11

    Answer by itsmesteph11 at 3:50 PM on May. 29, 2009

  • And the number of people out of a job doesn't include the 1,100 or so dealerships that GM is closing. My feeling is that Union is grasping at straws to save a few employees their jobs, but at what cost? It is sad that many of those employees have worked for years to reach the pay levels they were at only to find out that they will likely be the ones permanently laid off in favor of those employees who were working for less and those employees will be doing the same job for less than the were getting paid; not to mention that heath benefits are likely to decrease. It is troubling to me that this will create an unfair market for Ford and Honda because of the incentives that are to be given to those buying Chrysler & GM (like the $4,800 voucher plan Cash for Clunkers). I think its putting good money after bad, because first you have to have an economy where people are employed, who can get credit at a decent interest rate
    Anonymous

    Answer by Anonymous at 4:01 PM on May. 29, 2009

  • They can give all the perks they want, people are losing their income and cannot afford to buy new cars right now. I'm loving the fact that my 2002 Montana is paid for...... btw gas prices are on their way up again, last I saw it was $2.65 a gallon.....I have to buy gas to get to work, gas prices to fill a gas tank VS a car payment.....car payment VS a new car sitting in the driveway because you cant afford to drive it......I think I will stay with my paid off Montana......

    tyme4me2day

    Answer by tyme4me2day at 4:01 PM on May. 29, 2009

  • and who actually STILL HAVE credit. Who in their right mind wants to incur more debt in the midst of a volatile economy not knowing when things are going to stabilize for the long term. I don't think that too many people are going to run right out and go into debt for a new vehicle when they don't have a roof over their head, or are struggling just to pay their mortgage and utilities and put food on the table. Most will hang onto the vehicles they currently have.
    Anonymous

    Answer by Anonymous at 4:04 PM on May. 29, 2009

  • Great point anon 04
    tyme4me2day

    Answer by tyme4me2day at 4:07 PM on May. 29, 2009

  • I don't know why in the world GM employees would vote on the concessions not knowing if their plant is one of those which GM plans to close. Seems like the are voting for someone else to keep their job, while theirs may be down the toilet! From what I read, the concessions needed are not to employ more people, but in fact to downsize and permanently lay off 21,000. I think either way, the employees are the ones getting the crappy end of the deal, because no matter whether they voted for or against it, someone is going to be out of a job. Clearly, this is a no win situation as 21,000 are expendable just so some of them will still be working.
    Anonymous

    Answer by Anonymous at 4:11 PM on May. 29, 2009

  • In other news alot of "jobs" are going to teenie boppers so they can have "pocket change" for the summer
    Anonymous

    Answer by Anonymous at 4:13 PM on May. 29, 2009

  • In other news alot of "jobs" are going to teenie boppers so they can have "pocket change" for the summer

    Actually you are wrong. They are saying that these teenie boppers-you must be over 50 or around that age-are having a hard time finding jobs bc of older people snagging them up bc people are more apt to hire a more mature person than a teen.
    Anonymous

    Answer by Anonymous at 4:16 PM on May. 29, 2009

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