The document discusses the potential effects if General Motors were to go bankrupt or cease operations. It states that over 3 million jobs would be lost in the first year alone and another 2.5 million in the following two years. The US economy would lose over $150 billion in personal income in the first year. Local, state, and federal governments could lose over $156 billion in taxes and costs for unemployment assistance and healthcare over three years. Supplier bankruptcies could bring all auto production in the US to a halt. The document argues that a GM bankruptcy would have widespread negative effects across many industries and that a government bailout is in the best interest of the American people and economy.

1. Thomas Digitally signed by Thomas Liquori
DN: cn=Thomas Liquori,
email=thomasliquori@aol.com,
Liquori
o=thomasliquori.me, l=New York,
NY
Date: 2010.09.05 19:01:47 -04'00'
The demise of an American auto
industry
General Motors
Thomas Liquori
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The current myth in the media states, “The demise of the American industry
won’t really affect the American way of life. Many people wonder could this statement
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released by the press be fact or fiction? At any event General Motors is on the verge of
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going bankrupt and the icon of an American giant may be coming to an end.
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The effects that would happen, if General Motors would go out of business,
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would be catastrophic. In the first year alone, three million people would lose their jobs,
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following another 2.5 million in the coming two years after. In the first year, personal
income would drop more than $150.7 billion in the United States, and the cost to local,
state, and federal governments could reach $156.4 billion over three years in lost taxes, and
unemployment and health care assistance. Domestic automobile production would more than
likely fall to zero, even by international producers, due to supplier bankruptcies. From
plants to parks, dealerships to driveways, gas stations to grocery stores; what happens in
the automotive industry affects each and every one of us. In fact, the collapse of the
U.S based auto industry wouldn't just impact the nearly 355,000 Americans directly
employed by the Big Three. One out of every ten people in America is employed in a
service that is related to the U.S auto industry. If a plant closes, so does its suppliers,
the local stores, the hot dog vendors, and the local restaurants.

2. General
THE DEMISE OF AN AMERICAN AUTO INDUSTRY
Motors
Bankruptcy should not be an option for General Motors, for any auto maker that
filed for a Chapter 11 reorganization, car sales would plummet even further. A study by
an Automotive Market Research Firm stated, “Eighty percent of people intending to buy
a new car would switch brands if the car came from a manufacturer that went
bankrupt”. I believe that the biggest answer to today’s question, should General Motors
be bailed out by the Government, would be yes. The American auto industry is the
backbone of American manufacturing, and almost 4% of the gross domestic product is
auto related. Three million U.S jobs are dependent on the health of U.S auto makers,
and they are not all in the Midwest, it is across the entire country. Consumers must also
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think about what would happen to the warranties on their vehicles that would become
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void, if General Motors would so happen to go under. It is in the best interest of the
people to support the bail out of the Government to help General Motors.
BERKELEY COLLEGE LIBRARY
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G E N E R A L M O TO R S : A B I B L I O G R A P H Y
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PREPARED FOR IBS201
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World Wide Web Sources:
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<http://mfactsandfiction.com>
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Thomas Liquori9/5/2010 Page 2