Trickle Down

Dec. 2 - For those that cannot comprehend that the Big 3 automakers do not exist inside a baloon, the tire industry has been directly affected by the automotive market slowdown. Well, duh.

According to the Rubber Manufacturers Association, tire shipments are projected to decline by more than six percent this year compared to 2007 with a further one percent decline predicted for 2009. The 2009 forecast assumes that an economic recovery will occur in the latter half of the year. Not everyone agrees with this thought.

One out of every 10 U.S. jobs, or about 13 million, is auto-related. America can't have a healthy economy without a healthy auto industry, because autos represent the country's largest manufacturing base. Almost 4% of U.S. Gross Domestic Product (GDP) is auto-related. Every auto plant job generates about 5 jobs among suppliers and the surrounding community. By comparison, a Wall Street job generates 2 additional jobs.

There are those that seek to punish the domestic automakers because they don't care for their product. This short-sighted, pig-headed approach would ensure the loss of nearly 3.0 million jobs in the U.S. economy for 2009. The loss of tax revenue to federal, state and local governments would amount to $60.1 billion in 2009. Let the lemmings jump off their own cliff, but don't take the rest of us with you.