At the same time, these people would need to have careers that they can go into after completing such training. (Marinellini, 2008)
Threats
The challenges of high unemployment facing the auto industry are having a ripple effect upon society. As far as threats are concerned, the changes that are occurring highlight how everyone must be prepared for sudden shifts in the marketplace. Where, many once thriving communities face the possibility of becoming ghost towns. A good example of this can be seen with Flint, Michigan. This was once a thriving middle class city of hard working General Motors employees. As the company slowly lost market share, the face of the town would change from middle class to one of cautionary tale. Where, homelessness and urban blight would become increasingly common. This is because the levels of unemployment would slowly eat away at the standard of living in the community, to the point that it would become an economic wasteland. In this aspect, Flint is a cautionary tale of underlying social threats that many cities and towns are facing. (Gerke, 2007) as a result, communities need to diversify in other sectors that can provide them with growth outside the production of automobiles such as: pharmaceuticals or green technology.
Clearly, high levels of unemployment in the auto industry will have an impact upon society. This is because the industry will directly and indirectly employee millions of people. At the same, these employees and their families will have an impact upon a number of local communities. When you put these elements together, this shows how the changes in the industry (i.e. The implementation of new technology) and the economic cycle can have a profound impact upon cities. As a result, communities should try to diversify away from having to heavy of a...
One possible way that this can be accomplished, is through: communities, business owners and labor groups; working together to bring new employers into an area. Where, there will be the traditional packages of tax incentives, yet with a twist, as labor groups and businesses could help to increase these inducements. For example, a potential community could attract possible employers, by working with labor groups to establish an acceptable level of wages. Where, the cost of labor is not so high that it scares off employers, while being large enough that it can allow employees the opportunity to earn a decent living. One way that this could be accomplished, is through a compensation program that will lower the average hourly wages of employees while increasing their benefits (such as: taking additional compensation and investing in various annuities / life insurance / common stocks). This will help to create more of an incentive for a host of employers to relocate to an area. The reason why this will work is because it addresses, the basic needs and goes beyond what other communities / regions have to offer. Over the course of one to five years, this strategy will help any community to be able to maintain some kind of balance in the local economy.
Bibliography
Gerke, P. (2007). Flint Michigan. Associated Content. Retrieved from: http://www.associatedcontent.com/article/231606/flint_michigan_home_of_unemployment.html?image=85673&cat=10
Jones, J. (2010). Impact of Unemployment on Our Society. Helium. Retrieved from: http://www.helium.com/items/23934-the-impact-of-unemployment-on-our-society
Marinellini, O. (2008). From Humans to Robots. University of Maryland. Retrieved from: http://www.geog.umd.edu/academic/undergrad/harper/Marinelli_09.pdf
