Hmm... Import or Domestic (no flames please)

This is a really tough one for me.

The capitalist part of me wants to say, “Fuck GM. If they put out a superior product people will buy it, and if they refuse to, or can’t afford to because of terrible contracts they’ve allowed unions to push them into, that’s their problem”.

But the part of me that looks a little farther ahead than profits and capital gains sees a very big problem coming for this country. Right now there are lots of college educated professionals like BikerFry who take the stance that this is an unskilled labor issue, and getting a college education will protect you. Unfortunately, 3rd world countries are starting to get those college educations, and I think within 10-20 years from now you’re going to see a huge shift of professional “college grad” jobs overseas as well. Companies like FedEx have made this a very small world, and with increases in technology it gets smaller each day.

Don’t believe me? Look at the IT industry. I can pretty much guarantee anyone you talk to in IT has worked with at least one overseas outsourced consultant. As more of them get their educations and become better in their respective fields this is only going to get worse.

So what’s the answer? I don’t have one. The fact is living in the US, and living the way someone who has spent big bucks getting a 4 or more year degree feels they are entitled to, is expensive. My wife and I both have 4 year degrees, two cars, a kid on the way, and a house here in Williamsville. Without getting into numbers, we spend a pretty decent buck but make pretty decent money as well. If we were a similar family living in India there is no way we’d be living the same way, so with a college education there we wouldn’t be expecting nearly the same rate of pay as we get here in the US.

So does that mean that Americans should just change their lifestyle? Sell my house in Williamsville and get a much cheaper apartment, that we might share with my parents? Get rid of our cars and take public transit? Read books instead of having Dish Network and an HDTV? Because if America wants to just say, “It’s a global economy, learn to live with it”, I think that’s where we’re heading. Saying “Go get an education” isn’t going to cut it as these 3rd world countries start doing our 50-100k a year jobs for 20-40k a year.

The auto industry is a bad example for this though. Union contracts, especially regarding health care and retired workers are causing as much or more of a problem for GM than competition. It’s hard for GM to build an Accord beater for the same price when they start out $1500 in the hole per car just to cover current and past employee health care. So by the time that car rolls out of the factory if it’s going to cost the same as the Accord, you needed to find somewhere to make up that difference.

Enough for now… dinner time. I’ll check back later.