Nearly three million jobs would be lost in the first year if there was a 100 per cent reduction in Big Three US operations,' Cole said.
Job losses among suppliers of car parts and car sales companies, as well as those on the production lines, would be compounded by a massive drop in taxes and consumer spending power that would further cripple the already hobbled American economy.
'Our model estimates that a complete shutdown of Detroit three US production would have a major impact on the US economy in terms of lost wages, reductions in social security receipts, personal income taxes paid, and an increase in transfer payments,' said Sean McAlinden, CAR's chief economist.
'The government stands to lose $60bn in the first year alone, and the three-year total is well over $156bn.'
http://www.guardian.co.uk/business/2008 ... -joblosses
chief executive of the Anderson Economic Group, a US consultancy, believes that at least 35,000 jobs will be lost if the government intervenes to save the industry. <b>'The necessary restructuring to take capacity out of the market would lead to between 30,000 and 40,000 job losses nationwide,' he said.</b>
What were the further consequences of the industrial revolution?
Big industry created in the steam engine, and other machines, the means of endlessly expanding industrial production, speeding it up, and cutting its costs. With production thus facilitated, the free competition, which is necessarily bound up with big industry, assumed the most extreme forms; a multitude of capitalists invaded industry, and, in a short while, more was produced than was needed.
As a consequence, finished commodities could not be sold, and a so-called commercial crisis broke out. Factories had to be closed, their owners went bankrupt, and the workers were without bread. Deepest misery reigned everywhere.
After a time, the superfluous products were sold, the factories began to operate again, wages rose, and gradually business got better than ever.
But it was not long before too many commodities were again produced and a new crisis broke out, only to follow the same course as its predecessor.
Ever since the beginning of this (19th) century, the condition of industry has constantly fluctuated between periods of prosperity and periods of crisis; nearly every five to seven years, a fresh crisis has intervened, always with the greatest hardship for workers, and always accompanied by general revolutionary stirrings and the direct peril to the whole existing order of things.
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What follows from these periodic commercial crises?
That, though big industry in its earliest stage created free competition, it has now outgrown free competition;
that, for big industry, competition and generally the individualistic organization of production have become a fetter which it must and will shatter;
that, so long as big industry remains on its present footing, it can be maintained only at the cost of general chaos every seven years, each time threatening the whole of civilization and not only plunging the proletarians into misery but also ruining large sections of the bourgeoisie;
hence, either that big industry must itself be given up, which is an absolute impossibility, or that it makes unavoidably necessary an entirely new organization of society in which production is no longer directed by mutually competing individual industrialists but rather by the whole society operating according to a definite plan and taking account of the needs of all.
Second: That big industry, and the limitless expansion of production which it makes possible, bring within the range of feasibility a social order in which so much is produced that every member of society will be in a position to exercise and develop all his powers and faculties in complete freedom.
It thus appears that the very qualities of big industry which, in our present-day society, produce misery and crises are those which, in a different form of society, will abolish this misery and these catastrophic depressions.
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