Economy booming, Whirlpool cuts 5,000 jibs

http://m.swtimes.com/mobile/business/article_819193e6-0175-11e1-ac1e-001cc4c002e0.html

Whirlpool, based in Benton Hatbor Michigan (closely connected to Fred “no light bulbs” Upton has announced it is cutting 5000 jobs due to slow demand and increasing material costs for its appliance products.

Fort Smith Arkansas’s unionized plant will be about 1000 of that – the plant was built in 1962 by Norge, a brand that no longer exists. Starting about a decade ago, many of the jobs were already moved to Mexico

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7 Responses to Economy booming, Whirlpool cuts 5,000 jibs

  1. jackkeats says:

    Art,
    The only problem with that idea is that the illegals haven’t gone anywhere. As bad as the economy gets, it’s still better here than in ‘ol Mexico. And check with the furniture rental guys, they’ll tell you those big houses are still occupied, by as many as four, five, or six families.

    • TheChairman says:

      Yep… this misnomer (outside the southwest) that illegals are buying houses and behaving like typical American consumers is mostly just that… a fallacy.

      Living between Michigan and Arizona on a seasonal basis, I get to see how the perception presented by the media (i.e. in MI) differs from reality (in AZ).

      IMO, they drove up demand for multi-family housing during the ‘boom’… and the displaced citizens provided the sub-prime housing market. Banks offering 110-125% mortgages didn’t help the situation either.

      Illegals will live with 10, 20, and more (mostly males, btw) to a dwelling, safe in the knowledge that few landlords will report them out of fear of ‘racism’… these are not to be confused with ‘drop houses’ mentioned on the news.

      They can work at construction or other ‘skilled’ labor for $9 per hour (versus $20+ for a citizen) because they don’t have 50% of their paycheck deducted.

      Their children get a “bi-lingual education” without contributing to property taxes, and then get in-state tuition while citizens fret over rising costs.

      Don’t get me started on how their ‘friends’ inside DMV get them licenses, etc.

      Many who did leave AZ just went somewhere else deeper inside the U.S. These are not the people who are buying Berber carpet and refrigerators.

      Ergo, had illegals been deported initially, we might have a lot less of a mess.

      • Art Stone says:

        As you know, I live in Connecticut, an area not know for previously having been “stolen Mayan/Inca/Aztec land”.

        My antenna started going up when I made my infrequent visits inside my local Banco de America branch. While I was being given the bum’s rush “Sir, you know that you could deposit that check using the ATM instead of wasting the time of a teller, right”, the main activity going on within the branch was the mortgage department talking to folks about mortgages in Spanish. My high school Spanish is just good enough to follow the general subject they were talking about. I wasn’t at all shocked to learn that BofA had been handing out fraudulent mortgages to undocumented residents without even a valid ID, let alone proof of income.

        The local wal-mart used to be full of people talking in Spanish and the local fast food chains workers talked in Spanish to each other. The local school system was broke because they were spending large amounts on bilingual education, and had classes overflowing with children sitting in broom closets, despite the town’s demographics suggesting a population skewed highly toward the elderly.

        That has all pretty much gone away. The wal-mart is nowhere near as busy (that may just be because other ones have opened in the area). The fast food chains have reverted to the more normal demographic of Eastern Europeans and blacks. The construction going on in the area ground to a standstill. Connecticut has very little high density housing as a matter of public policy (don’t want them New Yorkers movin’ in) and didn’t engage generally in massive over-building.

        My most enduring memory of that time was sitting in the parking lot of the McDonald’s parking lot in the Walmart shopping center. “Mom” was working in McDonalds. Her arrangement apparently was that after school, her two children were to “hang out” at McDonalds. I’m guessing the boy was about 11 and his younger sister was about 9. They were passing the time by picking up rocks and throwing them at the windows of the cars coming into walmart – standing right out in the open, maybe 5 feet away from the moving cars. I wonder where they got the idea that was acceptable behavior.

  2. Piquerist says:

    One definition of “boom” is the sound that a very nasty “crash” makes.

  3. prboylan says:

    Shaw Industries (a carpet manufacturer started in 1946 and now owned by Warren Buffet) is doing pretty much the same thing. They’ve closed six plants in north Georgia and Alabama since 2008, reducing production work force from about 31,000 in 2006 to 24,000 today.
    “Paul Murray, Shaw’s vice president of sustainability, said in an October interview that Buffett believes that the economy will eventually recover, but that any recovery could still be years away.”
    http://timesfreepress.com/news/2011/oct/11/1011-a1-shaw-to-shut-dalton-plant/?print

    • Art Stone says:

      There is a connection between the two – major appliances and carpet are purchased largely by people building houses. With 15+ million vacant housing units in the United States, we have a problem. The surplus housing stock means either:
      – we stop building houses for the next 5 years (and kill off the related businesses – lumber, appliances, furniture, cabinets, electrical supplies)
      – we find new people to live in the houses (immigrants)
      – we tear them down and eat the economic loss
      – we “stimulate” the construction business to keep building new houses we don’t need

      Back before this all started, I was warning people who wanted to ship all the illegals back to Mexico that they should consider the effect that would have on real estate. The excess inventory means few new houses are being built, which means we don’t need millions of construction workers, which means they went back to Mexico, leaving behind vacant apartments and houses – So here we are.

      • prboylan says:

        How ’bout this for a solution? We increase demand for appliances and carpet by:
        (1) making energy and water more affordable by removing all punitive regulatory restrictions on U.S. energy production: drilling, mining, refining, nuclear, etc.;
        (2) directing the federal reserve to return to the time proven policy of maintaining a “sound dollar” rather than trying to manipulate world currency markets to defend an otherwise worthless piece of paper that derives its value only from comparison against other equally worthless pieces of paper;
        (3) revising tax policy to encourage high-value manufacturing and technical services (thereby increasing real national wealth, not just inflated paper wages);
        (4) tax spending instead of savings so as to reverse the current national belief that there is no point in saving for big ticket purchases (college, homes, cars, medical, retirement, etc.). Also see item (2) which plays into the savings rate. There’s no point in trying to save when your government is busy trying to monetize its debt.

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