Steep November job losses could end deadlock on the US auto industry bailout plan
It was a shockwave that was felt throughout Wall Street all the way to Capitol Hill. Last Friday, many stood in disbelief as the economy absorbed yet another huge blow when it was reported that the November job loss numbers tallied 533,000 pushing the US unemployment rate now well ahead of six percent. It came as a shock to many analysts whom many expected it would be just around 350,000.
The job cuts came across the board, from the financials to retail and trade, suggesting that this recession was not at all willing to take any prisoners. For the congressional leaders inside the Beltway, these figures could finally end the divide that continuously delay the approval of a bailout package aimed at saving the beleaguered auto industry, particularly that of General Motors, Ford, and Chrysler, collectively known as the ‘Detroit 3’ or the ‘Big 3’.
House speaker Nancy Pelosi, initially adamant in giving the automakers of what they were asking when they faced the congressional committee on finance in the past few weeks, is now reconsidering the measure since a bankruptcy by these companies might result to a possibility of them eventually closing down. It is estimated that over 2 million jobs would be lost as a result of the collapse of the ‘Detroit 3’, which includes the industries that supply the parts for the mechanization of their cars.
The US Congress is steadfastly working in this lame duck session to have US$15-17 billion of the earlier approved legislation to make cleaner cars, be used to pump the engines of GM and Chrysler at least until the new Barrack Obama administration gets into full swing. President-elect Obama has hinted in his recent ‘Meet the Press’ interview on NBC that he will not allow the collapse of the auto industry, so that should be good news for the three struggling automakers.
Nathan Andrada
nathanandrada.wordpress.com
