UAW Fault or the End of the Industrial Age?

FastLaneKen

Never Forgotten
It may be to late to save the US made Cars, if we are truly at the end of the Industrial Age in America. - Read this and Think about it!

WASHINGTON - These are transformational times in a nation rooted for a century in a life of lunch buckets, calloused hands and belching smokestacks. That life is being upended and it's on to new, more ephemeral things.

America doesn't build like it used to. Services R Us.

The auto executives and labor bosses who came to Washington pleading for a bailout represented a waning industrial age that delivered decent wages, good benefits and stable employment for millions, over generations.
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They could not help but look like yesterday's men, grasping for a chance at tomorrow.

They stood not just for a gasping industry or a shrunken labor movement but for America's wrenching transition from the familiar ways of putting food on the table and kids through college.

How many people do you know who go to work each day and make something you can hold or touch?

In most places, probably not many.

Not even in Trenton, N.J., where the bold sign on a railroad bridge boasts "Trenton Makes, the World Takes," harking back to when it made rubber, wristwatches, parachutes, linoleum, armaments, glassware, fine china, toilets, cars, wall plaster, farm tools, mattresses and cigars.

Now it makes policy and bureaucracy, mostly employing people in state and local government. In that state, one worker in 10 makes something, down from one in two in 1950.

'Like a ton of rocks'
So it goes across the country. Not quite one worker in 10 is in manufacturing.

The swagger of the American blue-collar worker has been gone for so long that books about that endangered species have turned yellow at the edges.

"A Ford or a U.S. Steel is there, on the ground, like a ton of rocks," the Chicago labor lawyer Thomas Geoghegan wrote in a tough-love ode to the labor movement.

His book, "Which Side Are you On?", is more than 15 years old. Much rock has become rubble since then.

Even then — before "Made in China" became the norm — there was a sense that the times of little pink houses were a-changing.

"Automation always seemed to lead to more jobs, somewhere, at some point," Geoghegan wrote. "Now it seems to lead nowhere. Workers used to think: It's OK, it's leading to the next industrial revolution.

"But now the word on the street is: There isn't going to be a next industrial revolution."

To be sure, America still makes more than Americans think it does. The products are less visible, unless you've got a semiconductor on your holiday list.

The biggest export in recent years has been commercial aircraft and parts, worth over $100 billion last year. Next comes autos and auto parts, worth $80 billion, both from domestic and foreign factories in the U.S. Earth-moving equipment and MRI scanners are other examples of high-end products still made in the USA.

U.S. manufacturers make more with fewer people. Some 3 million manufacturing jobs — nearly one in four — have been lost since 2000 while productivity has gone up. The service sector drives 80 percent of the economy. That's schlepping fast food, processing information technology and a lot in between.

The industrial economy was built by bombastic corporate and union leaders working together and at head-butting odds during decades of negotiation, strikes and bloody confrontation.

Now everyone hangs on to a swiftly tilting planet, a mix of the known and unknown.

Changing worlds
The sociologists Robert and Helen Lynd described it this way: "A citizen has one foot on the relatively solid ground of established institutional habits, and another foot fast to an escalator erratically moving in several directions at a bewildering variety of speeds."

They wrote that in the 1920s, while studying life in Muncie, Ind., when America was entering the industrial age it now appears to be exiting, job by outsourced job, industry by archaic industry.

The auto and labor leaders of today came to Washington cowed and needy, no bombast to be heard.

The company executives were shamed by lawmakers into driving from Detroit instead of flying in their corporate jets.

The United Auto Workers officials were funneled into a make-or-break meeting where Republicans from states that host foreign carmakers with nonunion work forces demanded sharp wage concessions from the Detroit crowd as a condition for the rescue.

The union said no, like the old days.
 
Or will it be this senerio? What follows is a cut and paste from James Howard Kunstler's site, Clusterf*cknation.


"People Get Ready

In the twilight of the Bush days, in the twilight of the twilight season, a consensus has formed that we are headed into a long, dark passage leading we know not where. Even CNBC's Lawrence Kudlow has been reduced to searching for stray "mustard seeds" of hope on hands and knees in a bleak and tortured financial landscape. Half the enterprises in the land are lined up for some kind of relief bailout and a blizzard of pink slips has cut economic visibility to zero.

The broad American public voted for "change" but they thought that meant a "changing of the guard." Out with the feckless Bush; in with the charismatic Obama... and may this American life now continue just as it ever was. The change actually coming will be much more than they bargained for, namely our transition from a wealthy society to a hardship society. The sharp break is a product of our years-long failure to reckon with the energy realities of our time. We're still confused about that, but it's hard, otherwise, to ignore the massive disappearance of capital, asset values, livelihoods, domiciles, comforts, and necessities.

The price of oil is suddenly down to an astounding $40-odd per barrel. Those of us studying the Peak Oil story have said that the "bumpy plateau" years of peak production would be expressed in tremendous price volatility, and for exactly the reasons now evident -- that the high-price phase would mangle advanced economies, that they would fall back in paralysis, then respond anew to oil price collapses by straggling up again, only to be crushed again when a resumption in demand for oil drove the price back up.

What was not so generally anticipated was the wholesale destruction of global finance in the first phase of this period. This has now occurred so comprehensively that we know the banking business will never be the same again. It has also accelerated other plot-lines in the story. One affects the global oil industry itself: a lack of capital to go forward with the new oil projects that were designed to mitigate the present depletions in old oil fields. The result of this quandary is as likely to be oil shortages in 2009 as much as an extremely sharp snap-back in oil prices. The oil markets themselves are changing in the face of financial disruption. Between pirates lurking off the Horn of Africa, and a shortage in letters-of-credit that enable the shipping of anything for delivery between nations, the allocation system is impaired. This affects poorer nations the most, and when they don't get their oil shipments, conditions in these nations get worse. People lose incomes. Ethnic strife ramps up. All this will make it harder to move oil from the places where it is produced to the importing countries.

So much artificially-generated pixel "money" is being pumped into the system now that it will eventually overtake the quantity of capital currently vanishing in the form of exposed securities swindles, unwinding bad debt, and imploded worthless counter-party contracts. The pixel money will express itself as super or hyper inflation, lagging from 6 to 18 months from the time it was actually introduced in the form of bailouts. For the moment, money is moving into the presumed safety of US Treasury paper. Personally, the safety of this is not something I would presume. But in the current deflationary stage its hard to find any other place to park cash, and when asset values are crashing everywhere, cash is king. Gold is physically unavailable in the form that non-millionaires usually buy it in, ounce and half-ounce coins.

President-elect Obama has announced his intention to kick off a massive "stimulation" program when he hits the White House "running" in January. Early indications are that it will be directed at things like highway repair. If so, we will be investing long-term in infrastructure that we probably won't be using the same way in ten years. But I doubt there is any way around it. The American public can't conceive of living any other way except in a car-centered society. Anyway, some parts of our highway-bridge-and-tunnel system are already so decrepit that they pose a menace right now, and the clamor to direct "stimulation" there is already very strong -- backed by all the fraternities of engineers.

Stimulus aimed at perpetuating mass motoring will be a tragic waste of our dwindling resources. We'd be better off aiming it at fixing the railroads (especially electrifying them), refitting our harbors with piers and warehouses in preparation to move more stuff by boats, and in repairing the electric grid. Unfortunately, our tendency will be to try to rescue the totemic touchstones of everyday life, things familiar and comfortable, regardless of whether they have a future or not.

The ominous forces gathering out there will defeat these efforts and everyday life will reorganize itself some other way consistent with the single greatest trend: the force of contraction. Every sign we see is pointing in that direction, from the inability of the earth's ecology to support more human beings, to the dwindling of mineral and energy resources, to the destruction of farmland, to mischief in the climate. We just don't know how badly things will fall apart in the meantime, or how kind (or cruelly) people will act in the process.

Mr. Obama would be most successful if he could persuade the public how much more severe the required changes are than they currently realize, and inspire them to get with program of retrofitting American life to comply with these realities."


cheers
ken
 
I guess the automakers better start releasing the electric and solar cars they've been toying with for the past 20 or so years.
 
Automakers fault for not making better quality vehicles and keeping prices affordable

UAW's fault for not making concessions to the struggling automakers
 
Automakers fault for not making better quality vehicles and keeping prices affordable

UAW's fault for not making concessions to the struggling automakers

I think more of the problem lies with the Dr's myself...

In 1900, the average person was pushing daisy's by 47 years old.. Retirement was a pine box..

Not until 1950 did most Americans even stand a chance of seeing retirement age and a need for a retirement fund.. hell you were dead the day you walked away from work. There are actually many stories of people dying within weeks of "retiring"

Today, you could very well see 80 before falling in a 6 foot hole.. This creates a situation where you now have people well outliving their working career and requiring housing, food, medical care etc..

This problem is exacerbated by the fact that the "baby boomers" are all entering this realm of higher medical care needs as well as drawing on pensions, social security and as well as using other publicly funded resources.. This burden is carried by a yet younger smaller group of people with substantially harder times and few options for that our grandparents had available..

The sparsely populated areas of the country with oil and other natural resources was summarily used up by a an industrialized group of users using up what ever they could find.. This turned the country into a powerhouse unlike any seen in hundreds of years.

Well that time of "easy" resources is over and now it is time to see if we can adapt to a more competitive world. We are simply being put on the same footing as everyone else out there with the added burden we brought on ourselves.. Old people.. it all their fault.. :poke:
 
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