If Detroit goes down, so do 3 million jobs
Posted
Nov 06 2008, 07:01 AM
by
Douglas McIntyre
Rating:
Every industry has its blue-chip think tank. In the case of cars it is the Center for Automotive Research, which has come out with a new and disturbing study.
Based on forecasts which look at The Big Three, the foreign competition making cars in the U.S., auto parts companies, and other related industries, a collapse of the U.S. auto industry would cost three million jobs. U.S. personal income would drop almost $400 billion over three years.
If only half of Detroit's capacity was compromised, the number of jobs lost would still be over two million when the ripple effects to other parts of the economy are taken into account.
In the worst case, the government would lose over $150 billion in 2009, 2010 and 2011. If those numbers are right, it leaves Congress and the administration one question: how much are they willing to spend to keep all that tax income.
Top Stocks blogger Douglas A. McIntyre is an editor at 24/7 Wall St.
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