GM's Layoffs are a Major Betrayal to America

On December 19 2008 General Motors recieved a $13.4 billlion investment, the first of many, from the US government. In total GM recieved $51 Billion from the citizenry. The final tally for the people stands at a -$11 billion loss, after selling off all government owned stocks.

Almost a decade later, GM has completed its repayment by axing its workforce and closing factories.

GM, a private company, spent $11,000,000,000 on behalf of the American public in return for saving an estimated 1.2 million jobs that would have been lost due to coporate mismangaement at GM, and in the economy at large. To be clear, everyone has, or nearly has suffered, because of the financial interests at GM's board of directors, and the economic elite at large.

Now GM plans to shed nearly 14,900 jobs at nearly 15% of their workforce in preparation for the next economic collapse. This figure neglects to mention the additional jobs in the supply chain and jobs in the communities that are supported by auto workers.

The company claims to take this as a proactive move, a reasonable proposal given the immense changes coming to the auto industry over the next decade. Autonomous cars will inform greater technology integration assisted by electrification will change vehicle assembly and supply chains, while also reducing the number of parts, and jobs, needed. Add to that the trend toward increasing SUV purchases paired with a car focused lineup, the turbulence of the political economy, impacts of a financial crash where the Federal Reserve has little room to manipulate interest rates, the overall rising cost of living, relatively stagnant wages and a household debt ratio barely better than leading up to the great recession. In total GM, and everyone else should be worried about how they will fare when the next crash comes.

Perhaps it is reasonable, even positive, that these layoffs and their broader restructuring occur before such a downturn occurs, but for those losing their jobs that provides little reassurance. Offering buyouts to employees beforehand shows a greater degree of care for its workers than most companies, as does the relatively large profit sharing that employees recieve. GM has also been very strategic in their investments in the future. Still, GM spent a hefty $5 billion buying back stocks, and besides a very lackluster 2017, produces billions in profits to turn over to shareholders, even as the government lost billions to recover that private profit.

Is it reasonable to be upset over these layoffs?

Yes and no. Autoworkers that are effected should be upset, and the UAW should have a bone to pick in their meetings with GM next year, as will Unifor in Canada. For an average American, some solidarity should be shown for those workers, and the prospects that everyone will endure when the crash occurs. For insitutional stockholders you should jump with glee, just like your earnings will.