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Are We Tired Of ‘Winning’ Yet?

November 26, 2018

The news today was really not that unexpected in the large view of the economy.  There have been signs all along that a major headline from the likes of GM was soon to arrive.

General Motors stated that it planned to idle five factories in North America and cut several thousand blue-collar and salaried jobs in a bid to trim costs.

GM, like other corporations, is tightening its belt in expectation of an economic slowdown. Similar fears are reflected each week in the stock market. Deloitte has forecast an increased probability of recession by 2020 with GDP growth of just 0.7%.

But how could that be happening with a such a ‘successful’ business person in the Oval Office.  Were we not told that with the touch of Trump on the economy all things would glitter and sparkle?

The fact is, of course, that due largely to uncertainty created by Trump’s trade wars and disruption of supply chains there is much angst in the business class nationwide. His steel and aluminum tariffs have raised manufacturing costs for all U.S. automakers, with GM reporting $300 million in increased commodity costs for just one quarter.  The Trump voter may not grasp the consequence of such a figure, but the corporate boardrooms do.

As a result, stocks of GM, Ford and Fiat Chrysler have all fallen by as much as 11%.

I trust we are not too far into the weeds for my Republican friends with all the facts listed.  So it will probably only dismay them further to ask why the corporate tax cuts which were supposed to create jobs, has now clearly done the opposite?

Are we tired of winning yet?

Look on the bright side America.  Perhaps the closed auto plants can retool and manufacture rakes. I understand there could be quite a demand for them.

One Comment
  1. Jim Ryan permalink
    November 27, 2018 9:29 AM

    Actually GM’s stock rose after they announced the layoffs – not sure how that makes a company more valuable since less people will be able to afford their product or any products for that matter. Just shows how divorced the board rooms are from reality.

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