Detroit's White House Problem
The UAW has always voted Democratic, but as the current Administration continues to alienate Detroit executives, will carmakers abandon the GOP?
Relations between the Bush Administration and Detroit have grown so frosty that some Motown executives privately say they are looking to the Democrats for help. In some cases, they are even supporting them.Perhaps we are seeing a change of heart.
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Under President Bush, working-class Americans have lost 3 million manufacturing jobs. While Bush pushes through tax cuts for wealthy people, inflation, rising energy and health-care costs, and higher interest rates are squeezing the middle class. Under Bush, average household income has declined 4% and household debt is now 120% of after-tax income—the highest level of indebtedness in history, says the Washington-based Economic Policy Institute.
All of those factors have conspired to squeeze average middle-class families—Detroit's core buyer. More-affluent folks tend to buy cars from Honda, Toyota, Mercedes-Benz, and BMW. Some Big Three marketing executives say the financial weakness of their core buyer has hurt sales.
I believe some smart guy said something similar two years ago:
It has been said that what is good for business is good for America. I disagree. I believe that what is good for Americans is good for business. The main consumers and producers of our economy are the workers and the middle class. You can sell neither product nor service without a vibrant, empowered marketplace and consumer base. If you want to support business, support the consumer.
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