It Happened Again: GM To Lay Off Significant Numbers
It has happened again, and again in a very big way. I am sure
you have heard the news that General Motors has announced they
are closing plants and letting some 30,000 people go. Some they
will be able to relocate, some they won't.
Ford announced they are laying off over 4,000 people as well.
This is all devastating news that we should all be concerned
about.
The manufacturing sector of our economy is the one sector that
provides for our society a "ladder" to allow us to move from
lower class economies to middle and upper middle class
economies. Without manufacturing, it becomes more and more
difficult for families to pull themselves up and obtain the
Great American Dream.
Most manufacturing jobs provide up to nine other jobs in the
local economy. Think about the local drug stores, dry cleaners,
car washes, gardeners, fast food restaurants, independent auto
mechanics, and so on, that are going to see their customer base
diminish and their services not used as frequently. This will be
a direct result of their local patrons no longer have the
discretionary income they once had. Most of those that are being
laid off will now start to learn how to get it done themselves.
After all, they will now have the time. Many will begin working
on their own cars, taking care of their own lawns, cooking and
eating "in" more often than not.
And with fewer "end" products being produced, suppliers and
their employees are affected in the same fashion.
What of our younger generation that is coming up through high
school. What direction do they take upon graduation? What field
do they now study in college? And to learn a trade is still a
good bet, but unless they move to an area where there is more
discretionary income, what do they learn a trade in?
These are tough situations and difficult questions. These
actions affect us whether we live nearby or not, were laid off
or still working. How much will the government be able to do to
help us? I spoke with some friends who live in Marathon Florida
who were devastated in the last hurricane and they related that
FEMA has notified them that they are temporarily out of money
due in large part to hurricane Katrina. They indicated that FEMA
told them tehy need to go back to congress to get more moneys
approved.
There were some individuals who had some foresight and started a
home based business that provided them residual income. It may
have sounded kind of corny then, or out of vogue, but there are
those families, husband and or wife: single parent, or head of
household that DID do something way back when and have been
enjoying discretionary income month after month from their home
business. To those who were prepared, you will have a little
less worry and frustration than those that did not. For those
that did not have a home based business and consequently no
monthly residual income, it is never too late to start one. You
can start one up for relatively little cost, and it will not dig
into your new budgeted spending pattern if you start a business
where the products would be those that you consume in your
household each month (all businesses need to have products or
services sold. If not, then they are a scam and turn away as
fast as you can).
As independent adults that are getting caught in this layoff
trap and having less and less security, there are some analyses
that may be difficult, nevertheless, need to now take place. For
those of us not directly caught (yet), this analysis process
would still be good for us to examine as well.
First, hopefully those employees getting laid off have put back
some savings. After all, this has happened before, so hopefully
there was foresight that something like this could happen again
and there was at least some preparation.
Second, take a real hard look at what areas you would be able to
trim, immediately if you have to, in order to slow down the cash
outflows every month. Look at these areas closely. If you have
teenage children, you might want to involve them in the process.
Have them help to contribute ideas that will help the family
weather this storm. Explain to them that as parents, you will do
everything you can to make this a temporary situation and
explain to them you appreciate their help and input.
Third, "write down your plans". This is so important. Set some
short term goals that will help you to get through this time.
Also make sure to include your "written" finances from step 2
here as well. One technique to use is to sit down and write out
where the money is currently being spent now, and keep in mind
that most of us don't have the patience to do this, or are not
honest enough with ourselves when we write it down. This is an
important enough step that it is worth repeating. Look at the
list and decide what, if any, areas you can trim down for the
interim period. Don't look at it as "I can go without this"
because this will begin to breed anger, after all, you worked
hard for X amount of years and you deserve this (whatever "this"
is). And anger will do you, and or your family and friends no
good at all. This is not the end of the world and you and your
family will survive it. YOU MUST REMEMBER THAT! But if you have
the wrong mindset, it will make the process you are getting
ready to go through much more difficult than it needs to be.
Once you have it all written down, talk to your spouse, or if a
single parent, talk to your children and try and solicit their
support in "making those new plans happen". If the family has
goals, and "everyone" in the family participates, this temporary
setback will be brief and the family will remain intact. If
there are no goals, or they are not specific, then everyone does
what they think they should do and in reality, nothing gets
accomplished except feelings of contempt and frustration for one
another.
Keep in mind that this has happened to people and families in
the past and it will be experienced by people and families in
the future. You may find that your life begins moving in a
direction you had not originally intended it to, or the changes
that take place in you or your family are changes you would not
have thought possible before. That will be ok. Again, the most
important thing to remember is that you did just fine up to this
point and you will do just fine after this. There is a life
after (insert you company name here). Sometimes many believe
that a power greater than they are found it necessary to
challenge them to learn and experience new situations that will
further develop their true selves, or the people they were
intended to be. Some will shrug their shoulders and say ok,
let's move on.
Situations have a way of correcting themselves in time, but
usually not without some direct input from us. What this means
is if we are to have a positive outcome, we need to have
positive input. If we experience a negative outcome, then we
obviously have input negative actions, feelings and or emotions.
Remember, this is not the worst thing that could have happened.
If you were not ready for this one, then get ready for the next
one. Seriously examine your spending patterns. Take a hard look
at where your money is going. Employ a technique called delayed
gratification, meaning wait and save the money for the item, or
do what is necessary now, in order to have the item or pleasure
in the future.
And if you do not have a side business, a home based business,
or a part time business, realistically pursue that. There are
too many opportunities that are out there for bright people that
are hard working in nature, to sit on the sidelines and not be
able to participate in the "Great American Dream".