Early on the morning of June 1st General Motors filed for chapter 11-bankruptcy protection, which down the road will leave a giant mess that will have impacts far beyond the loss of jobs by GM employees. General Motors announced that nine manufacturing plants will be permanently shut down, leaving thousands without jobs. These closures are expected to send a ripple affect though the economies of small communities. Many small communities have grown around these manufacturing plants, which provided jobs to over half the population in some areas. GM was center stage in many of these communities, providing jobs, funding community projects, and attracting new people to the town. Seeing that a majority of the residents of these small communities who are employed by General Motors have been laid off, the affect on the businesses of these places will be sever and is likely to paralyze the local economy by the sudden drop in sales. The school districts are also at risk because of the expected drop in students attending the schools in these places in view of the fact that many of their parents have lost their jobs and must find work elsewhere. This expected depopulation of towns is the factor creating a ripple in the economy, which will leave yet more people without work and even some in poverty.
GM: Giant Mess
June 2, 2009