General Motors Job Loss: Don’t Believe It

If General Motors is allowed to fail, won’t we lose three
million jobs? That multi-million job loss comes from both GM’s own
employees, plus the suppliers and dealers. 
However, the economics behind that idea is pretty bogus.


The number of auto jobs we have is tied to the volume of
cars we produce and sell in the


If GM fails and then the economy recovers, the jobs will recover.  They may not be GM jobs.  They may well be Honda or


jobs, but still located here in the

United States



Or consider the alternative: that after GM fails, car demand
never recovers.  In that case, subsidies
to GM continue forever.  The


continue to do what GM has done for so long: pay auto “workers” to not work.


It is possible to produce high quality cars fairly
inexpensively, and in


.  The Japanese companies do it.  GM cannot. 
If GM fails, someone else will take up the slack.