Big 3 failure could cost NJ 65,000 Jobs

by: Jason Springer

Wed Dec 10, 2008 at 11:00:00 AM EST

The big talk on Capitol Hill these days is the potential bailout/bridge loan/whatever you want to call it the big 3 are trying to land for a lifeline of their own. There are many reports that a bill will be voted on as early as today. NJ certainly has a stake in their success or failure:

A study out Monday says Pennsylvania could lose up to 120,000 jobs and New Jersey 65,000 if all of the Big Three automakers collapse.
Nationwide, up to 3.3 million people could lose their jobs over the next year, according to an Economic Policy Institute paper called, "When Giants Fall."

As if our unemployment system wasn't already overwhelmed and running short of funds, this collapse (if it were to happen) would send shock waves through the state's economy. There are numerous sectors that are tied to the auto industry including metals, glass, auto parts, dealerships, electronics, plastics and rubber to name a few. Tom Wyka put up a diary talking about the healthcare burden that is weighing on the auto dealers as well.

It seems like once again we are left with many bad choices. We can throw money at the Auto dealers and hope it works until they probably come back for more in a few months, have them declare bankruptcy when many say they wouldn't buy the product if that happened, or let them collapse altogether and deal with the economic ramifications of losing another industry. The restructuring has to occur, but how to make that happen is the big question.

Jason Springer :: Big 3 failure could cost NJ 65,000 Jobs

Tags: Car Czar, Auto Industry, Big 3, jobs, Economy, Bailout, (All Tags)

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Big 3 failure could cost NJ 65,000 Jobs | 1 comments

Here's an idea (0.00 / 0)

there are roughly 300 million people in the US, counting children. Why not give every one of them a thousand dollars? Of course, the children's money would go to their parents, but that $300 billion is still less than half of what was sent to wall street - and would have a much bigger impact. Hell, if my family got a $4000 check, we might just go buy a new car (okay, it would be a down-payment, but still).

by: Thurman Hart @ Wed Dec 10, 2008 at 19:26:35 PM UTC