For so many years, Michigan was dependant on the automotive industry. A major portion of the states residents had occupations that were connected to the “Big Three” (General Motors, Chrysler & Ford). But then greed got the best of them.
The Problem
In 1994, Bill Clinton put into act the “North American Free Trade Agreement” in hopes of creating the 'Jobs of Tomorrow'. His intentions were well meant but the larger companies began taking advantage of it. The Big Three in particular took the ball and ran with it. They began outsourcing much of their work, and who could blame them? They now have their work being done in other countries for a tenth of the cost. It is a simple basic rule to business. Have the work done for as little cost as possible and you make a larger profit.
Plants began to close in Michigan so that the work can be done in other countries. Smaller job shops that depended on the Big Three for work began closing as well. Thousands of workers in Michigan whose careers were connected to the automotive industry have lost their jobs. The Big Three did not care about the people in the state though, they only had their eyes on the better profits and the bigger bonuses for the executives. All eyes were blinded to the problems of the state. With so many out of work, they could no longer afford the luxuries they were use to and this has effected even those industries that are not connected to the automotive world. After all, if you are broke, how can you afford to go on trips, buy boats and electronics, and dine out so often?
I myself was an automotive engineer. I worked for job shops that did GM work. In the last four years I have been laid-off four times. I have not worked in over ten months now and cannot seem to find any kind of work that will pay enough to survive. We have filed bankruptcy and lost our house. After being laid-off from one company, I called them up a month after to see how things fared. I was told that GM had brought Korean Engineers over to the company to learn how to do that particular job, so GM could give it to them.
I have a friend who did not work for over two years. He went to school to change his career only to find the economy was bad enough in Michigan that he still could not find work in his no field. Recently he has found a part time job, but until then he had been taking loans out on his paid-off house to survive.
Many of the companies I have worked for, either no longer exist or are scraping by with minimum help. To see just how bad things are getting in Michigan, one only needs to drive down some of the main industrial roads and look at all of the “For Lease” signs in front of the empty buildings.
The Death of Michigan
The big three have shipped a lot of their work over seas to have it done at a fraction the cost. Thousands of people in Michigan have lost their jobs and many their houses. With so many people losing well-paid jobs, it took its toll on the other markets as well. Many who had always afforded the extras in life could no longer go to the movies so often or dine out. They cannot afford a night out for fun as often if at all. Most importantly, they can no longer afford to buy new cars. This is where outsourcing truly rears its ugly head. It is like a monster that once it is brought to live, it feeds off of itself and grows uncontrollably.
Many of the people who bought new cars in Michigan were employees of either one of the big three companies or one of the many smaller job shops that did work for the big three. With so many losing their careers, they could no longer afford to buy those cars. With the big three not selling as many cars, they have to cut back some and this costs more people their jobs. And the vicious cycle begins. More and more people continually are losing their livelihood. Just the other day, Chrysler has now laid off another 13,000 workers. Workers, who many probably were buying Chrysler cars, people, who will no longer be able to afford to buy a new car.
With greed filling the minds of the executives, they have lost sight of what those workers have truly meant to the over all cycle. In ignoring the needs of the people they have shipped much of their work overseas to make a bigger profit, only to find their sales are dropping. Their answer for this is to lay-off more workers who would have bought cars. With so many more workers losing their jobs, they will no longer be able to afford the simple luxuries they are use to either. Thus, hurting the rest of the economy in Michigan. With less customers, there will be more businesses that go belly up.
Right now, Michigan is the worse state in the country to live in. With a high unemployment percentage, high taxes, and no hope of a future in the eyes of the people, Michigan is a dying state.
The Cure
Though it has not been addressed, outsourcing needs to be cut back if not eliminated. If companies are no longer allowed to outsource or are taxed highly enough to make it not worth their while, they will be forced to give the work back to the people. With more people working again, they will begin to buy cars again along with spending on luxuries again, which in turn, will put money back into the hands of other industries. It would not be an instant fix, but it would be a permanent fix. Though it would take a few years for the people to fully recover, once they do, the big industries would begin to thrive again. Yet for now, the big industries only see through greedy eyes. They have their minds set on larger profits per item rather than over all sales. Until they wake up and see this problem or are forced to make the change, Michigan will continue to die.
