Kurt Bouwhuis, Mackinac Center Intern
I found a link to the article located below off of the CNN website. Jim Clark’s quote disturbs me. If the economy were run solely by him, it sounds to me as though he would keep the plant open. Why would he keep it open? Just for the sake of jobs? The economic “problem” here has to do with what this plant is producing. The plant is producing trucks, which has been demanded less due to the recent increases in gas prices. Does this mean that Jim believes that GM should continue to produce trucks that nobody wants? Does Jim believe we should steal money from taxpayers to subsidize the industry? Jobs are created because a business produces a good/service that consumers desire. If a business/plant fails to do so, you cannot continue to employ people just for the sake of employment. If you employ a model like this, there would stockpiles of goods everywhere with no willing buyers to put the goods to use.
A perfect example of this could be illustrated by examining that market for horse buggies. Before the automobile, the horse buggy market was flourishing becasue that was exactly what consumers demanded. When Henry Ford introduced the automobile, I bet horse buggy employees lost their jobs at the horse buggy factory. Is this a bad thing? Absolutley not! The resources of production simply shifted from what was demanded to what is demanded. I would bet that the communities that developed around these horse buggy factories began to diminsh. It is sad to see a town deteriorating, but in order for it to prosper again, it must produce a good/service that the consumers demand. We should not save the town and jobs by continuing to employ people at the horse buggy factories and stockpile the products.
MORAINE, Ohio — Workers at the General Motors plant in Moraine were given a letter Friday saying the plant is closing in December.
According to the letter, the last day of production will be Dec. 23, 2008. In June, the automaker said that the Moraine plant would close by 2010 or earlier. The plant currently employs 1100 workers.
GM spokesman Chris Lee said plant managers shut the line down at 2:30 p.m. Friday to gather the workers together and give them the letter.Originally, General Motors had planned several shutdown weeks in December. However, Lee said now there will be no temporary shutdowns and the plant will operate until December 23.
IUE-CWA President Jim Clark said, “IUE-CWA is deeply disappointed in General Motor’s refusal to keep the Moraine Assembly plant open. The announcement that the plant will be closed much earlier than initially stated will further hurt our members, their families and a Dayton community already rocked by plant closings and layoffs.”