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Texas,

I have to disagree with you on this point:

“The cost for a GM only manufactured product is the extra cost of the extremely expensive unionized labor. If the union allowed GM to fully automate factories like the automobile factories in Japan (you would not even believe it) then GM would be just fine. If the union allowed GM to decide what and where to manufacture and how to manufacture for the best price and quality then GM would be fine. You and I both know that GM does not have this freedom. Even though GM would be much stronger and the workers would have better job conditions and security (even if there were far fewer core workers).”

It might have been like that in the 80’s but its not like that anymore. There are all kinds of myths out there on how much money union guys make. They can make around $55,000 a year after 20-25 years of service. They can make a lot more than that if they soak up all the overtime. But of course that’s time away from your family. Last I checked they have the same health care plan as everyone else. The new UAW contract has those same workers making $15.00 an hour. It’s hard to raise a family on that. As far as the where to manufacture issue is concerned. I don’t think it’s a problem. They manufacture parts all over the world. And GM factories are some of the most high tech factories in the world. GM’s profits from those parts still come back to America and are generally spent here.

In some respects globalization has saved GM. It has allowed them to make parts cheaper and allowed them to compete. The flip side to that is that you’ve lost a huge chunk of the middle class. Most of those factory workers are not getting high paid jobs and adding to the tax base again. They are working at Walmarts and Home Depot. They are not able to send their kids to college or afford to buy a new car. In short, every one of those guys that are out of a job hurts our economy. There are not enough high paying jobs out there and service sector jobs don’t pay enough to support a family.

Pandora box has been opened and cannot be closed. But there are a lot of things that could be done to keep high paying jobs here. We can’t just let our tax base be shipped overseas. I try to buy American as much as I can. I think the stuff at Walmart is junk. I’d rather spend a few more bucks and get something that will last for awhile. Just my opinion.
 
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