CTP 08 - The autoworkers are worrying their job so they...

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Tat Sang Lao ECON 202 – David Bell May 25, 2010 CTP 08 Consumer Confidence When the U.S. government announces that the overall economy is recovering, the state, Ohio’s economy is still on its foot. Chrysler shut down its plant, and planed to lay off its autoworkers. People in Twinsburg such as Julie Bittner are so worry about that because Chrysler is the major business in Twinsburg. Twinsburg’s issue seems like a microeconomics issue, but actually it is more like a macroeconomics issue. The reason is the country’s recession causes Ohio’s economy fall back. The Chrysler example can explain that. Because of the recession, the demand of the automobile dropped very rapidly so that Chrysler shortly fell into the cash flow problem. Chrysler must get some measures such as closing factories to keep more cash. According to the article, the consumer confidence recently is fragile.
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Unformatted text preview: The autoworkers are worrying their job, so they trend to not spend too much money. It might be difficult for the factory workers to find new job in other states because the workers’ skill might not be useful to other state’s factories. For example, Ohio’s autoworkers are good at manufacturing vehicle, but they might not good at working on aircraft factory in Washington. In addition, when people are leaving the area, the prices of the house and land that is affected by the economic downturn will drop more deeply than before. Also, if local business lay off large amount of workers, that will causes bad multiplier effect in the town’ economy. Julie Bittner is the example, her store is going to be closed since the fragile consumers confidence....
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CTP 08 - The autoworkers are worrying their job so they...

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