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GM Starting Over

“If it’s good for GM it’s good for the Country”

gm-the-newThis is a classic paradigm statement that quickly polarizes everyone. Originally quoted by Charles Erwin Wilson defense secretary for President Eisenhower in the 1950’s.  Regarding this statement and your opinion, you fall into one of two distinct groups. GM is either very significant and should get Government help or GM is pretty much worthless and should go away.

The Automotive Tribune is of the position that GM is unique to the US with direct and indirect values so great that it must be saved. Major US based manufacturing is vital to the long term business and industrial health of the Country and that is why GM must be assisted through the current crisis.

Looking forward 5-10-50 years is the only way to get a realistic perspective of the importance of GM. However, looking back 100-50-10-5 years gets us to today. History provides a very real view that puts a strong foundation in place to support GM assistance. One fact that is absolutely clear is that GM has been off its core automotive track for a terribly long time and being off the core automotive track has caused a train wreck. Today, only the US Government can put GM back on track.

Industrial Education

History is a good word and the study of history helps to provide a basis and foundation for society today. Education, at all levels and in all cultures is respected for how and why it helps individuals and society. Industrial history education or simply industrial education is the study of tools, materials, processes, products, and problems associated with building things. Industrial education also deals with the larger scale issues associated with the who, what, when, where and why issues that shaped the broad scope of industrial activity. Industrial activity has built the infrastructure for the industrialized world that you live in today. You live in a house, drive a car, turn on lights or water, use the phone or television, visit the grocery or physician, breathe polluted or clean air, these are all facets of industrial society that represent direction that society wanted to have take and today you live in an industrialized world.

Industrialized World

People did not always live in an industrialized world. In broad terms when farmers got productive with agriculture to produce more food than they consumed some people could go to work in industry outside of farming; this is referred to as the transition from an Agrarian Society to an Industrial Society which started in the 1800’s. Government leaders recognized how important education was for both agrarian and industrial sectors so the Morrill Land Grant Act was passed in 1862 to set aside land that would be used to support education in the US and establish agricultural and mechanical university programs in each state, a process that provides financial support to the State Land Grant Universities.

Agrarian to Industrial

Industrial goods and services with increased productivity meant that fewer people could provide more food for society which permitted more people to enter the industrial work force to produce more high-value goods and services. Industrial output grows, financial output grows, and society as a whole gets richer.

Industrial to Information

In the 1950’s and 1960’s the transistor was invented. In its simplest definition a transitory could be though of as a very small off-on switch. Adding more transistors permitted computer software and hardware to utilize programs to make decisions. Contemporary terms such as computer programs, artificial intelligence, algorithms, Moore’s Law, personal computer, space travel, text messaging, and wireless represent some items that affect everyone to some extent each and every minute of evert day.

Getting To Today

Without Detroit the US would have lost WWII. Without North American industrial production WWII could not have been won. Allied forces used the industrial products of planes, tanks, ships, jeeps, guns, parachutes, electricity, oil, atomic weapons, and cigarettes to win the war. Some products were great and some not-so-great. Allied forces won the war. Axis forces were very good and resourceful but they ultimately did not have the available resources necessary to win the war. Germany did remarkable things in many areas including jet aircraft and synthetic fuels production to power their war machines but these activities did not win the war for the axis powers.

Post WWII Politics

Europe and Japan were re-built. A “Cold War” nuclear arsenal triad of mega-powers developed with China, Soviet Union USSR, and the Free World. USSR collapses and OPEC grows in significance to significantly influence the world oil supply which directly affects stability of the industrialized economies.

energy_victory_coverEnergy Victory by Dr. Robert Zubrin

One of the most significant books in modern times is Energy Victory by Dr. Robert Zubrin published in 2007.  I met with Dr. Zubrin last year and found him to be a highly motivated and successful man who has many years experience in various scientific programs including the US Space Program.  Dr. Zubrin chronicles the developmental history of middle east oil and Saudi Arabia from the mid 1700’s and early 1800’s and how Saudi oil money has a direct link to politics in the US and international terrorism. 

On the book jacket is a quote from James Woolsey, former director of the Central Intelligence Agency “Robert Zubrin pulls no punches and moves effortlessly from a fascinating oil-centered take on WW II to making the mathematics of oil alternatives intelligible to lay readers.  Oil and hydrogen take huge hits and alcohol fuels win big.  Don’t miss this one.”

WWI Politics

Archduke Ferdinand was assassinated which brought Austria and Serbia into conflict and because of mutual support agreements Germany and France were brought into the war which then resulted in Germany, Italy, England, Australia, Canada, Japan, China, and the United States along with many other countries being involved.  World War I started because of an assassination.

Today’s World and Tomorrow’s World

Post WWI politics unfortunately set up the foundation for WWII. Post WWII set up the framework for today’s world. OPEC is a natural resource controlling group that affects everyone reading this article. Terrorist groups demonstrated their effectiveness on September 11, 2001. Pakistan has nuclear arms and Pakistan has a radical presence that is trying to control the country.

What is clear about world society is that major events are occurring and that major things will happen. Some major things will test or threaten all developed and industrialized societies.

Getting GM on Track is in the Best Interest of the United States.  There are serious problems associated with getting GM straightened out.  GM’s industrial capability is a strategic national asset that must be preserved.  Bringing the top business, economics, labor, technology, visionary, and governmental minds together can establish the Business Plan necessary for GM to be successful in the decades ahead.