GM bankruptcy spurs demand to ‘reinvest in America’

[Omaha Steve]

http://transitional.pww.org/article/view/15847/

Author: John Rummel
People's Weekly World Newspaper, 06/02/09 12:01

LANSING, Mich. — The General Motors bankruptcy, announced Monday, was expected, having been predicted for weeks if not months. But the enormity of how far this once mighty giant of U.S. monopoly capitalism has fallen is shocking nevertheless. For many it seems like not so long ago when GM was not only the leader of all auto producers with a commanding 54 percent of the U.S. market, it was also the undisputed dominant corporation in the country’s economy.

In filing for bankruptcy yesterday, GM said it will close 14 plants in the U.S., half of them here in Michigan. It will leave less than 40,000 GM autoworkers nationwide, a tiny fraction of the 395,000 employed by the company in its heyday in the 1970s.

Nowhere is the shock greater than Michigan, GM’s birthplace. Today, the state has an official unemployment rate of almost 13 percent, and because it has seven times the auto jobs of the next highest state, Ohio, people here fear things will only get worse as the job loss in auto ripples through the economy.

At a “Keep the Dream Alive — Reinvest in America” rally that drew several thousand here yesterday, Jim Chapman a steelworker at Great Lakes Works in Ecorse, Mich., which makes steel for auto bodies, said he is a victim of that rippling effect. This father of five has been laid off for six months. “If you’re not selling cars, you’re not making steel,” he said. “It trickles down.”
Lansing, Mich., rally demands, "Keep the Dream Alive — Reinvest in America."


Lansing, Mich., rally demands, "Keep the Dream Alive — Reinvest in America."


Under a plan announced by President Obama on Monday, the federal government will provide up to another $30 billion to keep GM afloat while it emerges, restructured, out of bankruptcy. That is on top of $19 billion in federal money the company received earlier. The Canadian government will chip in another $9 billion as part of the deal. The downsized company will have 60 percent U.S. government ownership, with smaller portions of its stock held by the United Auto Workers union, bondholders and the Canadian government.

Ron Bloom, who heads Obama’s auto task force, told reporters the government will be a “reluctant shareholder” and will not get involved in day-to-day management. But, he said, with taxpayer money now keeping GM afloat, the government “has to demand something in return for this capital."

FULL story at link.