Risky Business

Filling The Gaps Left By GM's Layoffs

By Matthew Bandyk

Posted: April 28, 2009

Here’s one of those stories that’s so good I kick myself for not writing it.

With the auto companies like zombies (except thriving on bailout money instead of braaiinnsss), what's the Steel Belt to do? The politicians behind the bailout of the Big Three say we need to rejuvenate the auto and manufacturing jobs. But, as NPR reports, some entrepreneurs are trying to take Michigan's economy in a new direction.

Without the federal government propping up the auto companies, job losses would be even more massive in Michigan. So the local economy can't survive without the help, right? But, as this report shows, even in the recession, new businesses are popping up to replace the old.

This report also touches on the false dichotomy between fighting to keep jobs in the US and outsourcing abroad. As this example shows, the two can go hand-in-hand:

As with many high-tech firms, Netlink hired hundreds of workers offshore, in Bhopal, India. Dubey has also added jobs in Michigan, where salaries are several times higher.

So why isn't his whole work force in India?

"The majority of our workforce is in the U.S.," Dubey says. "When I go to financial investors, they ask, this makes no sense, what is wrong with you? And the answer there is the Michigan workforce, which has significant experience in automotive and manufacturing industry, understands how things work."

Former auto employees know the American industries that Dubey wants to serve.

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Yc4EQZ I want to say - thank you for this!

iowa city's tornado cialis of DC @ Aug 02, 2009 06:57:23 AM

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+1

soundtracks of AL @ Jul 17, 2009 06:22:55 AM

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Great topic. Now i can say thank you

cialis of AL @ Jul 16, 2009 07:13:05 AM

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Risky Business

Risky Business

Matt Bandyk, a reporter for U.S. News, explores capitalism from where it all begins, with the entrepreneur, whose risk taking and experimentation provide the roots from which the rest of the economy grows. As much courage as it takes to create one's own business, even the entrepreneur needs some help, and this blog will look at news, trends, and practical advice for starting and running a small business.

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