The Brian Sullivan Blog
  • December 11, 2008 09:06 AM EST by Brian Sullivan

    Why Are Autoworkers' Jobs More Important Than Others?

    The economic headlines were grim this morning.  Initial jobless claims were up 573,000 while continuing claims rose to more than 4 million.  Sara Lee is the latest company to announce layoffs, joining other big names such as DuPont, Dow Chemical and many others announcing cuts just in the past week.

    Keep this in mind: the total number of claims just the week is more than the total number of workers employed at GM and Ford combined (hard to know Chrysler's total number of workers because it is private and the data is kept closer to the vest ... but safe to say it is smaller than GM and Ford).   Yet the auto industry financial rescue plan is in full swing trying to keep these money losing companies in business.

    I am not saying we shouldn't work to keep everyone employed that we can, but the fixation on saving the auto industry jobs while milllions more get laid off and have no "bailout" in Congress makes one wonder why Congress spends so much time fiddling with this industry while Rome burns?

    I have a feeling politics may have something to do with it.

    If we are going to help, we should help everyone equally.   No doubt the former workers at Circuit City, eBay, Macy's and the thousands of other companies cutting jobs are wondering why they aren't getting attention.

mediablamer

"The way to create the most tax-paying jobs is with manufacturing something that people will buy. " People stopped buying cars. If people aren't buying cars, then made autoworkers' jobs aren't so important after all. Or maybe the people who aren't buying cars worked at Macy's, Circuit City, et. al and can't afford cars anymore.

December 11, 2008 at 10:47 am

movers

Unions vote and get politicians elected that is why they will be protected.

December 11, 2008 at 10:42 am

VM

The majority of the people of the United States are very upset about the auto bail outs, we criticize the politicians for being corrupt and not looking out for what the voting population desires. So why do we continue to vote these same people into office? Obviously politicians are not listening so we will have to live with their decisions until next November when the voices can be heard by the ballot speaking. Remember your thoughts next November and the Novembers of the future. Get involved and educated so that you can look through the lip service that we are all exposed to before casting your ballot.

December 11, 2008 at 10:38 am

unemployed

Unionism is Communism! Equal pay for Lazy Bastards! End of story!

December 11, 2008 at 10:23 am

Dolores

We need to save the auto industry not only for auto workers but for all the support and supply jobs that would be lost.However, I feel the most important reason is because we have so little AMERICAN OWNED manufacturing being done in this country. Foreign companies own their plants they can close up and move out tomorrow. Free trade is ruining this country. Start sur-charging and taxing companies that produce everything in foreign lands that they then sell here. Give special inducements to buy AMERICAN and we'll see the economy start to turn around. Congress should stop anymore bailouts to the financial industry and do more for Americans with the rest of that money. Loan money to the car companies, rework mortgages, give incentives to buy American cars and put people to work on roads and bridges.

December 11, 2008 at 10:13 am

Wally from Ar

The free and capitalist market work only one way. Someone wants to buy what they want at a price they can afford. Whether or not the product is produced by robots or by UAW workers is immaterial. The consumer only looks at the final product that he wants to consume. If that product is too costly he might favor a lower cost one, a lesser quality version or if he is a smart consumer find an alternative that is the best value. Soooo, you see the jobs at the auto plants really are no more or important to any other job. The workers are only a means of producing a product that someone is willing to purchase(consume). These are basic facts, and in a free market system any means of trying to manipulation by companies, unions, or government won't work. The bottom line is product value, price, and consumer statisfaction. The custormer is always right!!

December 11, 2008 at 10:12 am

Wally from Ar

UAW jobs are only as important as the free market will support it. They are like any other job that is subject to supply and demand for the end product. Once the labor content of a product becomes non-competitive then the buyers will find something cheaper. Unfortunately the idiots in management and the unions didn't recognze this basic fact of free market theory. They tried to force the market to do what they wanted and the market pushed back. The free market is always right and it always adjusts itself to and equillibrium point. Forcing the market to accept things that are out of equillibrium never works. Spending government money only temporarily upsets the balance but the market will find equilibrium again. NO BAILOUT MONEY......LET THEM REORGANIZE TO BRING THEM BACK TO A COMPETITIVE LEVEL.

December 11, 2008 at 10:05 am

Stroker Ace

Somebody please tell me why we are doing bailouts? I just don't get where the money is coming from and how I am supposed to pay for it. If the government raises my taxes I will have tell sell my house and everything and of course I won't be able to afford to buy a new car. Government, if you are going to bail someone out, bail out the citizens that have been corrupted by the greed and mismanagement of these large companies. We the people not we the unions and greedy CEO's.

December 11, 2008 at 9:55 am

Stuart

I understand by listening to the Ford CEO that Ford builds the best cars in the industry/world. I have a 2002 Ford Escape. All three climate control knobs have broken off. While doing a web search I find that this automobile is prone to sudden automatic transmission failure. Say it ain't so UAW!

December 11, 2008 at 9:47 am

Jack

The employees of Circuit City, eBay and Macy's are the beneficiaries of the money made in the auto, and financial services (where's the scrutiny for that bailout?), industries. Consider that for every car produced, thousands of parts are made for it, typically not by a manufacturer, but by a supplier, so you've got more jobs on the line. Then, look at the source of the suppliers parts, plastics and tires (oil industry), metal (mining), glass and paint. Put another way: Exxon-Mobil, Alcoa, DuPont, American Axle, Arvin Meritor and many, many other firms would be affected by the auto industry going under, or going into bankruptcy (let's face: no one would choose to buy a car from an bankrupt manufacturer, just like people took 25 years to believe in Hyundai). From the other perspective, look at the beneficiaries of auto industry: media, consultants, attorneys, tax preparers, restaurant owners, the list goes on and on. While most people don't consider the auto industry itself worth saving, consider the other industries that are affected by it, too.

December 11, 2008 at 9:43 am

Burnsie

Those jobs shouldn't be... I guess we see who has real power in our country. It is absolutely shameful what our leaders (both govt and business) have done. I wonder if they absorbing what it feels like to destroy our nation?

December 11, 2008 at 9:38 am

Dr Al

The hospital just told us yesterday our clinic was closing for good on 12/13. No one has offered to bail me and my staff out. I guess treating patients is not as important as making cars.

December 11, 2008 at 9:35 am

Ted Ryfiak

Our economy is based on capitalist consumption. The most important requirement for our economic success is abundant jobs. The types of jobs that guarantee the success of the government and the people are tax-paying jobs. The way to create the most tax-paying jobs is with manufacturing something that people will buy. This creates a self-generating cash flow that sustains itself almost like perpetual motion. The larger the industry – the more self-sustaining jobs are created. The industry with the capability of employing the widest variety of people is manufacturing. [Young, old, physically or mentally challenged.] The industry with the capability of supporting the most non-government jobs is the automotive industry when including all secondary suppliers. That is why automotive jobs may be more important than a lot of other jobs.

December 11, 2008 at 9:32 am

Doug Hershberger

I could not agree more. The US automakers have way too many fingers in the politicians pockets. The Unions are also to blame, if we had a free market of labor, then we could compete against other countries in manufacturing automobiles and other goods.

December 11, 2008 at 9:31 am

Tom

Just follow the money. Look to see how many union workers voted for democrats and also donated to their elections campaigns. On the flip side see how many of the Execs of the big three donated to the republicans. It is staggering the amount for the presidential race alone. Maybe it was money well spent. But from the looks of the brains that we have in Congress I think not. By the way, I am experiencing a downturn on my business can I get a bailout to hold me over???? And if not why, I'm paying for it for everyone else.

December 11, 2008 at 9:31 am

Andrew

Exactly. The organized crime and corrupt politics of union labor need to take a hike in America. It served its purpose during a crucial development in America's economic and business history. However, it's as outdated a practice as possible and one has to question their validity and tales of woe when you can recall stories that appeared in in the early 2000's about union workers in Michigan owning multiple homes and enjoying gold-plated health care. When other industries lay-off Americans from money making businesses, they are told to leave, they receive a minimal severence if at all, lose their health care and take a huge blow to their self-esteem. And Nancy Pelosi and Barney Frank don't hold press conferences about how they feel sorry for them and speak of their victim status while attempting to shovel tax dollars in their direction. I'll take a deeper depression to sort out the garbage that embroils American Politics and Business because everything from bankruptcies and foreclosure to bailouts and governemnt equity stakes is totally wrong.

December 11, 2008 at 9:29 am

GEORGIANNA ADKINS

No one industry or groups jobs are more important then another period. Our biggest problem is our government,they have not been able to run Congress so what gives them the idea they can solve our problems by printing more worthless dollars and trying to tell some one else how to run their industries.Most setting in Government have no clue about the common man and how he lives.They are no better then the ones they are criticizing.What about all the perks they have and those without jobs are suppose to pay for. No one was around this morning to bail me out when I had to borrow money to make payroll this week.I was on my own.So should everyone else .Congress needs to butt out.

December 11, 2008 at 9:27 am

Michae

You idiot! IT's not just the employees at the Big 3 themselves that will be hurt! It's the employees at all of the dealerships, suppliers, and dozens of other associated businesses that help make up the THREE MILLION JOBS IN THE FIRST YEAR that will be lost if one of the 3 fails. And if it were "politics" that made the difference, why would Congress have been so opposed to he idea the first time around? Try to get your facts straight. FOX News has a bad enough reputation as it is.

December 11, 2008 at 9:27 am

about this blog

  • Brian Sullivan joined FOX Business Network (FBN) in April 2008 as an anchor. He co-anchors the 10am-12pm ET hours of the FOX Business block. Prior to joining FBN, Sullivan served as an anchor for Bloomberg Television where he hosted the programs Morning Call and In Focus.

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