The Downfall of the U.S. Auto Market and the Collapse of the Economy

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The Downfall of the U.S. Auto Market and the Collapse of the Economy

Unemployment is rising and the entire global economy is falling. The story has become all too common. If there is a negative direction available to follow, we're definitely taking advantage of the opportunity. Americans became too accustomed to the period of inflation through the 1990s, and the ongoing recession is affecting most everyone. The Big Three automakers (GM, Ford and Chrysler) have made massive cuts to their workforces, and the entire national job market has been upended. My personal life has been greatly distorted due to these events, after Delphi (contracted by GM) outsourced most of their jobs and shut down 21 of their 29 plants in the US. In previous years, anyone would be capable of earning a comfortable wage by working for GM right out of high school. Now that these jobs have disappeared, union wages are no longer available. Unemployed individuals are desperate and working for minimum wage, and are therefore required to drastically change their standards of living. My dad is working seventy hours a week, and we're still barely able to pay rent. The so-called “American dream” has been transformed for many. It was once a goal to obtain what you need to be happy, but it is now just being able to manage to find a job capable of supporting your family. The downfall of the American economy could be accredited to many crises facing our country, such as the subprime mortgage crisis. A few years ago, we experienced an energy crisis in which oil prices soared, and this directly led to the current automotive industry crisis. One could argue that the automotive crisis and the downfall of the Big Three automakers has been solely responsible for bringing our...

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... mistakes that were made before.

Works Cited
Boyer, Peter. "The Road Ahead." New Yorker 85.11 (2009), 44-56. Web.

Carty, Sharon. "Plan to Save Automaker has Risks for Economy." USA Today (2009) Web.

"Gas prices put Detroit Three in Crisis Mode." MSNBC. 1 June 2008. Web. 15 Feb. 2010. .

Hornbeck, Mark. "Michigan's Long Fiscal Misery." State Legislatures 35.3 (2009), 26-29. Web.

"In Pieces." Economist 390.8619 (2009), 63-64. Web.

Klier, Thomas H. "From Tail Fins to Hybrids: How Detroit Lost its Dominance of the U.S. Auto Market." Economic Perspectives 33.2 (2009), 2-17. Web.

Noe, Eric. "Consumer Reports Top Car Picks All Japanese." ABCNews.com. 2 Mar. 2006. Web. 14 Feb. 2010. . Web.

Woodyard, Chris. "Ford Reports Profit for Year." USA Today (2010) Web.

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