exclusivepapers.com
Sales Toll Free:
chat off
Home > Sample Essays > Economics > The Decline of Michigan's Economy > Buy essay
← Economic History Regulatory Economics →
Live Chat

Custom The Decline of Michigan's Economy essay paper writing service

Buy The Decline of Michigan's Economy essay paper online

The Michigan State is one of the leading states in manufacturing, fishing and farming. It is thought to be one of the leading states in manufacture of automobiles and a heart of all technologies concerning current developments in this industry. Detroit which is a renowned city in the world as being the center of motor and automobile is Michigan’s largest city. For several years, Michigan has also been known as the leader in steel production and food processing (Wayne State University. Bureau of Business Research, 1982). Because of this, Michigan is thought to be contributing a lot to the country because it has created a lot of jobs to citizens. What necessitates fishing in Michigan is that fact that it is located along the four great lakes namely Huron, Erie, Superior and Michigan. The shoreline which the state covers is therefore larger than that of any other state in the United States. Farming in Michigan takes place mostly in Peninsula near the Lake Michigan and the strip is known for excellent fruit growing.

Although Michigan is known for contribution to the above in a positive manner, it is a shocking fact that its economy is at a verge of collapse as per the world reports of the looming economic crisis that has extended to the economy of the entire world in one way or the other. There has to be an urgent need to rescue the Michigan economy by rebuilding the roads and the infrastructure, investing in the improvement of education, having the tax imposed on the working families reduced and relying on the renewable sources of energy (Michigan. Dept. of Transportation. Office of Communications, 2002). This economic crisis is attributed to a number of factors as poor governance in the states besides strategies laid down by business companies.

Order now

The economic crisis has however resulted to unemployment and underdevelopment among the citizens of the state. The major downfalls in the economy are the decline in the auto industry which was largely depended on by many people, the very long recession periods and the shifting of the factories to the third world countries. As in the past, unemployment has been contributed by the lack of skill among the workers as the economy relies more on the cars industry. The cases of unemployment are more than personal characteristics and getting to the type of the employment contract and the job available. Frequent layoffs have made the people to command for wage premium in their look for employment security.

The auto industry has done a lot to the emergence of the economic crisis that has even affected the students of the Michigan University. The global recession has tolled the industry on its efforts to meet the consumers demand for autos. The aid by the government and the social partners to resolve the crisis is yet to yield fruits.

The auto industry is seen as the key element of the industrial manufacturing in the twentieth, and hence it has become the main source of employment all over the world. For instance in the year 2004, an approximate of 8.5 million people were working in the industry besides the manufactures and component firms from all over the world. This means that all these people are to be laid off with the collapse of the auto industry. This has however sparked major concerns to have the industry solve its recent problems. As indicated by the US independent think tank, about 3.3 million jobs in the United States alone depend on the industry. This is a true indicator that the economic crisis is as a result of the dependence on the auto industry (Michigan. Dept. of Transportation. Office of Communications, 2002).

The business model at present was linked to the corporate financial mechanisms that made the firm’s executives and the other managers to major on making much of the profit with regards to what the shareholders are to get. This strategy acted against the short-term investments in research and development which resulted in the inability of the auto industry to respond effectively to the cases of the climate change and the effects of dependence on oil alone in its production. The economic crisis was hence begot within the industry.

0
0
DAYS
:
0
0
HOURS
:
0
0
MINUTES
:
0
0
SECONDS
Discount Code

There was over-competition and wars with regards to the prices of the products among the auto industries. This scenario made the companies to cut their strategies which affected their connection and communication with the workers and the components producers. The workers hence had to rely on other types of work as the agency labor which were not of the expected standards at all. On the other hand, the component producers had to have the costs cut hence were forced to take more risks.

There were other situations that the business model of the short term raised up against the fundamental financial, technology-based labor practices, there were vulnerabilities between the workers and the companies. Moreover, the difference in the ideologies created difference among the players who were to be the key participants in the solving of the crisis affecting the company. It is with this that the auto company has contributed to the Michigan economic crisis at the moment (Michigan. Dept. of Commerce, 1989).

With the increasing want by the consumers to purchase the products of the company, and the company’s little ability to support all of them, there is a shift in the concern to other industries that manufacture the same product. However, due to the fact that the crisis does not impact equally across all the countries, employees and the companies, the US auto industry is to be overtaken by other developing companies as the Indian that are rising with much of the local consumption of their products and the increasing output. The demand for autos has gone down due to the economic crisis that has taken root and imposed its negative effects of job-cuts among the people. The companies have hence been forced to reduce jobs in proportion to production making the people unemployed. Besides this, the retired workers who depend for the retirement income and the benefits of healthcare are never met of their needs hence contributing to the economic crisis.

The company’s prolonged recession has also affected the economy of Michigan. The auto industry has internationally remained weak and in need for financial help in order to be active again as was before. The position of the company globally has significantly dropped due to competition from other companies as the General motors among others which are continuously intensifying their products to meet the need of the customers (Wayne State University. Bureau of Business Research, 1982). This has resulted to the company declaring itself bankrupt and has sort protection from its creditors. This scenario significantly leads to unemployment and the laying off of the workers in one way or the other.

In conclusion, the Michigan economy has been affected by a number of factors and strategies involved with an aim to improve on the production quantity and quality. These strategies have happened to be against the central production that the company can aim in order to keep at bar with other companies. It is therefore due to the high dependence on the auto industry that as if fails in its strategies as would do any business at some instance, the people are left unemployed, laid off and hence leading to the failure in the economy of the Michigan. marked by lack of dependable jobs.

Buy The Decline of Michigan's Economy essay paper online

Buy essayHesitating

Related essays

  1. Regulatory Economics
  2. Opportunity Cost
  3. Economic Journals
  4. The Need to Safeguard our Food
  5. The Illegal Economy
  6. Economic History
  7. Communicating during a Crisis
  8. The Wealth of Communities and the Durable Future
  9. The Issue of Globalization and Cultural Homogenization
  10. Managerial Economics
What our customers say?
 
  • We accept:
  • Paypal
 

15% off your first custom essay order

Order now

PRICES
from $12.99/PAGE

X