Why they won’t change their ways--the big three

In July 1987 National Geographic published a map of the Great Lakes, 15th in a series of 17 maps, “The Making of America.” It is has very interesting information and we keep it at our lake house on Lake Erie. From 1890-1960 it reports that the “lake ports of Hamilton, Cleveland, Detroit and Gary emerged as steel making giants in the heart of one of the world’s greatest concentrations of heavy manufacturing. Lake side mills devoured iron ore shipped south from the Gogebic, Mesabi, and other Lake Superior ranges, as well as coking coal brought by railroad and lake boat from the coalfields of Illinois and Appalachia.” But there were hard times--some 225,000 were forced to leave the north country of Minnesota--the farms and mines--between 1940 and 1950 alone.

However, for the 1970s and 1980s, we see a turn down for this region--the area of the big three that now comes to Congress hat in hand, asking for a bailout. It says “in the 1970s U.S. manufacturing ran afoul of global economic ills, foreign competition, poor management and extravagant wage pacts (the pensions they are now worried about). Tens of thousands left the so-called rust belt for the Sunbelt. “Japan quick to adopt the latest technology, forged ahead of the U.S. as the world’s largest steel producer. The substitution of lightweight plastics and aluminum for steel hammered the industry harder. Meanwhile U.S. automakers floundered under an invasion of fuel-efficient foreign cars; in Michigan car and truck output halved between 1976 and 1980.” . . “Detroit’s population shrank from 1,514,000 in 1970 to 1,203,000 a decade later. . . Many migrated to the South and West, were the booming service and high-tech economy required them to learn new skills.”

So here we are, more than 20 years after this was written, 30 years after our auto industry and the UAW were put on notice that they absolutely had to change, to streamline and reduce wages. Did they learn? No. They survived making light trucks and SUVs with huge management and union salaries, wages and benefits and big profits for shareholders. Now they sit in front of sour faced congressmen, berating and ridiculing them, babbling about sharing rides, people with no business expertise such as Barney Frank and Nancy Pelosi who haven’t a clue how to get us out of this mess, people who owe their own jobs to unions and big business both for more benefits and higher salaries. Those of us who didn’t make a fraction of the union wage or the CEOs salary, or a Congress salary, are expected to save them.