What's Good for GM

By Holstein, William J. | Chief Executive (U.S.), June 2005 | Go to article overview

What's Good for GM


Holstein, William J., Chief Executive (U.S.)


I asked an economist a simple question recently: "Would it make any difference to Hie U.S. economy if General Motors and Ford were to go out of husiAness?" He said, "No." He is an apostle of free market ideology, and judging from President Bush's own statement (see cover story, page 30), this is the prevalent view in the land. This view holds that, because new entrants such as Toyota and Hyundai are building new plants, a job that disappears in Michigan reappears in Alabama. There's no net loss in national economic terms. We shouldn't care that GM and Ford both now have junk bond status.

That argument doesn't work for me. Don't get me wrong-I believe in the power of markets. But there are times when a nation's leadership must lean against market pressures. What if "market forces" dictated that Michigan and Ohio should cease to exist as manufacturing areas and just slide into the Great Lakes? Clearly, that's not an acceptable outcome in human, social or political terms.

An important element of this debate is the quality of the economic activity conducted by U.S.-based manufacturers as opposed to mat of the transplants. Unbeknownst to most economists, there is an entire set of issues to consider:

* Are the assembly jobs in the domestics vs. the transplants really equivalent? The pay scale and benefits packages offered by the domestics arc much higher. J.T. Battenberg of Delphi has put that total package at $130,000 a year per worker. We can argue about whether they let their costs get out of control. But the fact remains that a job on the line in Alabama, at $60,000 or $70,000, doesn't pump as much money into the economy as one in Michigan. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

What's Good for GM
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.