Tuesday, June 07, 2005

Job Creation and the Economy

With all of the debate about taxes, the economy and domestic spending, it is hard to imagine anyone supporting the notion of taking money from programs like Medicaid and college-tuition assistance, increasing the tax burden of the vast majority of working Americans, sending the country into crushing debt - and giving the proceeds to people who are so fantastically rich that they don't know what to do with the money they already have. Yet that is just what is happening under the Bush administration. Forget the middle class and the upper-middle class. Even the merely wealthy are being left behind in the dust by the small slice of super-rich Americans.
Not only that, but:

The United States is rapidly abandoning a longstanding policy aimed at keeping college affordable for all Americans who qualify academically. Thanks to a steep decline in aid to poor and working-class students and lagging state support for the public college systems that grant more than two-thirds of the nation's degrees, record numbers of Americans are being priced out of higher education. This is an ominous trend, given that the diploma has become the minimum price of admission to the new economy.

So, is the W, Rove and Co all about improving our economy and saving jobs or what?

If the proof is in the pudding, let's see, humm:

General Motors Corp.expects to close more U.S. assembly and component plants over the next few years, slashing about 25,000 manufacturing jobs, as it battles high costs and shrinking market share, the company's chief executive said on Tuesday.

Chairman and CEO Rick Wagoner, speaking at the annual meeting, also said GM expects to save $2.5 billion a year from the cost-cutting measures.

Investors welcomed the news, sending GM shares up 2 percent. Michael Bee, lead equity strategist at Boyd Watterson Asset Management LLC, said U.S. automakers will continue to ship jobs overseas.

The cost of a GM worker in China is about 10 percent the cost of a U.S. worker ... You just really can't compete with some of these foreign producers,'' Bee said.

So, if companies like Honda, Subaru and Toyota can opperate manufacturing plants in the USA, why can't GM? By the way, how much did Kerkorian make on his recent purchase of GM Stock? Did he know about the forthcoming plant idling before he made his deal?

No comments: