Fema Employment
How much $$$ should Canada kick into the pot in order to save GM, Ford and Chrysler?
A whopping 582,000 direct and indirect jobs would be lost in Canada over the next five years if the ailing Big Three US auto makers shut down their Ontario operations, said a study Tuesday. If output is reduced by 50 percent, 296,000 jobs would be lost nationally, said the 11-page report prepared for the Ontario Manufacturing Council. "The economic consequences of either a partial or total shutdown of the Detroit Three are stark," said the report. "Either scenario is sufficient to push Ontario into a deep recession while the nation may barely escape one in the 50-percent reduction scenario." Initial job losses of between 157,000 and 323,000 at assembly plants, parts manufacturers and others, depending on the scenario, would rise to between 296,000 and 582,000 by 2014, said the report. The job losses would continue to mount after the first year because a weaker economy would depress investment, discourage immigration and half new housing construction, leading to a negative economic spiral. The auto sector and parts industry employ roughly 219,000 Canadians nationwide. The Big Three directly employ about 34,000 workers while overseas car makers employ just under half that number. On Friday, the Canadian and Ontario governments reached a tentative deal for a 3.4-billion Canadian dollar (2.8 billion US) bailout of Chrysler, General Motors and Ford's operations in Ontario province. But a payout is contingent on Washington's approval of a 14-billion-dollar US aid package. "If we think that the extinction of the auto industry is a national economic evolution, this report says that is a mistake," said Ontario Economic Development Minister Michael Bryant. "We won't let that happen because of the catastrophic effects that are laid out in this report," he said, describing the demise of Canada's auto sector as "the economic equivalent of a nuclear freeze with catastrophic effects that would knock us into a deep recession." http://www.breitbart.com/article.php?id=081216191048.6a9sr3wo&show_article=1
Public Comments
- i think they should bail them out themselves!
- they agree to 20%
- Well, the Canadian government can do what the Canadian government wants to do, but in my opinion, it looks like at least one of the big three is destined to fail. Will a lot of people loose their jobs? Yes, probably, but there's also another 300 million people in this country, and it certainly isn't going to help the other 300 million people if our tax dollars are being thrown at a company that is going to fail anyways. If GM goes under, it's their own fault for not selling energy efficient cars. They just kept producing big SUV's and trucks, and they’re STILL producing Hummers. It drives me nuts when I see those things for sale at the dealerships. At the same time, there's also MILLIONS of people who work for the big three, and it would be horrible if they all loose their job. It would also do long term damage to Detroit, and Windsor in Ontario. I'm also sort of angry that Republicans from the south (where foreign auto makers have operations) are trying to use this as a time to make a statement about unions and appeal to Toyota, Honda, etc. I’m honestly undecided about the issue. It’s a very complicated situation, and I’m glad I’m not the one who has to be in charge of deciding whether they get a bailout or not.
- RLMFAO - question of the year - here's a star. * * * That was so hilarious. The question should read, How much should the world pitch in for guaranteeing them cheap oil, and giving them work when US Corp moved over seas.. I still say the bartering was effective then and still effective today - we give you food, you give us something we need...
- It makes sense that Canada would contribute to the bailout Even though I'm against giving money to the Big Three, since it's going to happen anyway we might as well get contributions from other countries who depend on our auto industry. I'm just really surprised that their government came together to reach an agreement on this. When I was over there the Canadians told me, "We are overthrowing our government." I thought they were joking. They were not. http://hyannisnews.com/Hyannis-News/1392.html
- If? It still isn't sinking in is it? 0.00 If they have any common sense. It's 'Buddy can you spare a dime' when the world goes bust regardless of whose fault it is or who is the prime mover. Check the details of the 1871 Crash and scale them up for now. D'oh! It wasn't so smart following dummies after all! 'If there's anything to learn from 1929/30, I think it is that a true depression is unlikely to develop from one or two sensational plunges and alternating surges in the market. The time to get seriously concerned is when the market slides gradually, slowly and steadily and tries from time to time to lift its head above water and doesn't make it. Till then, all the stock responses of the Wall Street wizards I've quoted are of little use. In the light of the fourteen stock market crashes since 1873, none is quite the same; there is no dependable pattern of positive decline, of positive recovery. Everything is very different or slightly different. All we can do is watch and wait, keep our fingers crossed, distrust the experts, and hope for the best.' Alistair Cooke '87
