What's Good for America

Rarely in my life have I felt that every time I glanced at headlines I would consistently shake my head in amazement.  But these past few months have been non-stop eye popping headlines.  Today's is no different.

Charles Wilson, the chairman of GM during the early 1950s was appointed by President Eisenhower to be the Secretary of Defense.  During his confirmation hearings he was asked whether he could make decisions which could adversely affect GM.  His answer, often misquoted is: I thought what was good for the country was good for GM and vice versa.  We all know what the misquote says, but this statement is actually playing out today.  

The problem is that, among other things, no one who is of an age, say under 40, that will continue to buy cars, is buying American made automobiles.  Something like 40% of Americans under the age of 40 have at one time bought an American made car (that is, a car made by Ford, GM, or Chrysler).  

Regardless whether the "Big Three" fumbled the customer needs test, the lack of manufacturing jobs in America is deeply troubling.  Michigan used to be the epicenter of middle class jobs for blue collar workers.  And those jobs were relatively color-blind.  If you could train to screw bolts, you made good money.  And those employees bought cars, appliances, homes, took vacations, went to the doctor, had dinner out, and raised their kids.  Money flowed throughout the economy like blood through arteries.

The tragedy in this bankruptcy filing is the utter failure of American manufacturing.  We pride ourselves as a smart, technologically savvy country, but the failure of our "made in America" companies seems to be prescient to a worsening of our economy.  

It also has to be noted that the federal government is "guiding" GM through this bankruptcy.  It makes me wonder who is "guiding" all the homeowners desperate for help with their mortgages that are deeply underwater and in delinquency.  Ah, but that is right, the tables have turned, and what is good for GM certainly doesn't seem to be good for the country.