Posted inUncategorized

How Detroit committed suicide

In the garage of my condo tower, someone parks a 1965 Buick Electra 225 convertible. It is sleek and big and powerful. This was Detroit, and in many ways America, at the zenith of its power.

Buick, like all GM divisions, still enjoyed great autonomy, including having its own design bureau. This car is a work of art. It is the successor to the legendary Roadmaster, and in those days Buick fans were fiercely loyal (my mother being one). GM cars were tiered so people could move up to a new GM brand as they became more affluent, as millions did in the 1950s and 1960s — Chevy to Pontiac to Oldsmobile and even Cadillac. Ah, but the Buick was special: glamorous, racy, classy and exclusive. Built union.

I think of all this, of course, as Chrysler is pushed into bankruptcy and General Motors may well face the same fate. What went wrong, and what does it say about America's future?

6
Posted inUncategorized

GM and Chrysler: Hasta la vista, baby

In earlier posts, I've urged federal help for the automakers. It would be a calamity to lose this manufacturing backbone, which especially props up what's left of the middle class in places like Michigan and Ohio. There was a large "if," however — if the automakers fundamentally changed their business models to focus on green technology and building transportation for the 21st century beyond automobiles, particularly transit and rail.

Not surprisingly, none of that is coming true despite GM already receiving $13.4 billion in federal loans and Chrysler getting $4 billion. About the best GM can do is phase out the evil Hummer. Otherwise, it's business as usual and worse: cut 47,000 jobs worldwide, shut five more U.S. factories and phase out Saturn, the brand launched in the late 1980s as the reinvention of General Motors.

There comes a time to let go. It will be painful, but it's time. We need to let GM and Chrysler fail.

3
Posted inPolitics: National

The Big Lie about unions

Somewhere over the past few decades, Americans became something new: followers. They became, as an earlier generation put it with disdain, "easily led." Keeping them that way requires a successful propaganda offensive in the case of the Big Three automakers. You see, it's all the union's fault. It's all the workers' faults. Just keep repeating that, over and over. Who knows what might happen if you failed to believe. Belief in the god "free markets" has been shaken by the incompetence of the Bush administration — and by the inevitable consequence of law-of-the-jungle capitalism: the worst economic calamity since the Great Depression. Who knows what might happen if working Americans were suddenly not so easily led.

They might follow the example of 240 workers at Republic Windows and Doors in Chicago, who staged a sit-in after Bank of America cut off credit to the company — and the company, in the way of today's America, laid off the workers without even a severance. They occupied the factory until the bosses and the bank capitulated. The action was hailed as a new sign of backbone, but there was a critical difference between these workers and most average Americans. A difference between them and the 35,000 employees that BofA itself is cutting. They were members of a union.

6
Who mourns for Dayton?
Posted inPolitics: National

Who mourns for Dayton?

1024px-DaytonSkylineGMRiver

When I moved to Dayton, Ohio, in 1986, it was the first time I lived in a real city. It was far smaller than Phoenix or San Diego, the then sleepy but populous places I'd been, but it seemed bigger. I lived in a leafy city neighborhood of old houses and took the bus to work. The downtown was a compact mass of skyscrapers held in a bend of the Great Miami River. The newspaper was there, in a lovely old building enchanted by history, with a newspaper bar right next door and a bustling historic domed arcade across the street. Two department stores were a block away. Across the square was the old courthouse where Lincoln had spoken. Nearby, a jazz club.

The economy was robust. The "Rust Belt" was reinventing itself as an innovative superpower and Dayton was no exception. While National Cash Register had shut manufacturing of the old machines — a trauma affecting thousands — it had become a successful global computer giant. Mead, the paper company, was headquartered in a downtown tower and starting a data operation that became LexisNexis. Dayton had the second largest concentration of General Motors employees in the world, and its factories were being retooled and reinvented, often with UAW bosses as leading innovators. Hundreds of suppliers provided well-paid, high-skilled jobs that were as productive as any in the world. The airport hosted an airline passenger hub for the best-run carrier in America, Piedmont, as well as a freight hub for Emery Worldwide. For a kid from the West, this introduction to the Midwest was a heartland epiphany.

Those assets are almost all gone now. And when I wonder why Ohio seems so crazy — how it could have voted for Bush in 2004, if indeed it did; why it fell for Hillary's Wellesley girl Norma Jean routine; why it could now be a tossup for McCain (?!). When I wonder all these things, I think about Dayton.

12