During our current auto manufacturing crisis here in Michigan, I have often heard the UAW workers that build our autos say that they created the modern MIDDLE CLASS and once they go, so does the middle class.
In today’s Wall Street Journal there is an interesting article by William McGurn titled “Michigan and the Knowledge Economy” 6-16-2009.
Yes, the auto workers did create a middle class in Michigan from ~ 1946 till now. This middle class was mostly populated by uneducated laborers who, in many cases, earned more than degreed individuals like teachers, etc.
This was a great life but as we now know, unsustainable in the long run mainly because labor costs made Michigan / U.S. auto manufacturers uncompetitive in the new world marketplace.
As the auto industry crashes around us and desperately tries to re-invent and reorganize itself to be more competitive, the middle class created by auto workers in Michigan has sunk to its lowest level in recent history coming in 33rd in the nation in per capita income which is 11% below the national average.
McGurn reports that John McCain was correct when he said as he campaigned in Michigan, that some jobs are just not coming back and boy did he get a whipping for saying that. Many in this state actually still believe that those jobs are coming back, maybe when the union gets back in power (card check legislation) but that is just plain silly and ignorant; those days are gone for good and unfortunately for those who were counting on a good middle class life based on factory floor manufacturing, will be very disappointed.
People in the know say that a NEW MIDDLE CLASS must be created and will be created but this time based on a “knowledge” economy where people with a specific knowledge base (engineering, etc.) will be making the big bucks and those without any specialized knowledge will be making what their type of labor is actually worth.
I am not talking strictly about the auto industry because the auto industry will no longer support a whole state. Michigan must diversify as quickly as possible and create new non-auto jobs based on this knowledge economy.
Many are saying that we still need MANUFACTURING and I agree. We need to create products that the rest of the world is willing to buy. My small company manufactures clinical laboratory tests and has since 1981 (28 years). We sell those products to labs, hospitals and clinics all over the world and I mean every country out there. We are successful because we make good products that are highly valued out in the world market because that market values AMERICAN MEDICAL PRODUCTS above those of other countries, even Germany.
My people make realistic wages, get medical coverage, 401(k) matching contributions and perform relatively light manufacturing tasks. We also have jobs in sales, marketing, finance, management, etc. There are many companies in Michigan like mine and on a national level; small companies are what drive our economy not the big behemoths.
Michigan needs to make itself attractive to small, knowledge based, innovative companies. These companies and their workers, will create a “need” for workers offering specialized products; healthcare, insurance, finance, education, etc.
It is sad to watch an era come to an end but this end was seen coming a long time ago and no one should be surprised.
Americans are resilient and our society has and will adjust because it has to and once again we will show the world what we are capable of, especially creating the “good life” that so many people around the world desire so much.
In today’s Wall Street Journal there is an interesting article by William McGurn titled “Michigan and the Knowledge Economy” 6-16-2009.
Yes, the auto workers did create a middle class in Michigan from ~ 1946 till now. This middle class was mostly populated by uneducated laborers who, in many cases, earned more than degreed individuals like teachers, etc.
This was a great life but as we now know, unsustainable in the long run mainly because labor costs made Michigan / U.S. auto manufacturers uncompetitive in the new world marketplace.
As the auto industry crashes around us and desperately tries to re-invent and reorganize itself to be more competitive, the middle class created by auto workers in Michigan has sunk to its lowest level in recent history coming in 33rd in the nation in per capita income which is 11% below the national average.
McGurn reports that John McCain was correct when he said as he campaigned in Michigan, that some jobs are just not coming back and boy did he get a whipping for saying that. Many in this state actually still believe that those jobs are coming back, maybe when the union gets back in power (card check legislation) but that is just plain silly and ignorant; those days are gone for good and unfortunately for those who were counting on a good middle class life based on factory floor manufacturing, will be very disappointed.
People in the know say that a NEW MIDDLE CLASS must be created and will be created but this time based on a “knowledge” economy where people with a specific knowledge base (engineering, etc.) will be making the big bucks and those without any specialized knowledge will be making what their type of labor is actually worth.
I am not talking strictly about the auto industry because the auto industry will no longer support a whole state. Michigan must diversify as quickly as possible and create new non-auto jobs based on this knowledge economy.
Many are saying that we still need MANUFACTURING and I agree. We need to create products that the rest of the world is willing to buy. My small company manufactures clinical laboratory tests and has since 1981 (28 years). We sell those products to labs, hospitals and clinics all over the world and I mean every country out there. We are successful because we make good products that are highly valued out in the world market because that market values AMERICAN MEDICAL PRODUCTS above those of other countries, even Germany.
My people make realistic wages, get medical coverage, 401(k) matching contributions and perform relatively light manufacturing tasks. We also have jobs in sales, marketing, finance, management, etc. There are many companies in Michigan like mine and on a national level; small companies are what drive our economy not the big behemoths.
Michigan needs to make itself attractive to small, knowledge based, innovative companies. These companies and their workers, will create a “need” for workers offering specialized products; healthcare, insurance, finance, education, etc.
It is sad to watch an era come to an end but this end was seen coming a long time ago and no one should be surprised.
Americans are resilient and our society has and will adjust because it has to and once again we will show the world what we are capable of, especially creating the “good life” that so many people around the world desire so much.
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