The Deindustrialization of America

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    The Deindustrialization of America

    “Roger and Me” is a 1989 American documentary film that focuses on the negative effects of the closure of General Motors plants around America. Several General Motors plants were closed down in Flint, Michigan. This closure had adverse effects on the local people as 30,000 people lost their jobs economically ravaging the whole city. “The deindustrialization of America” shares similar sentiments to the movie in relation to closing of manufacturing industries. Disinvestment of the companies caused many social problems in the 1980s. The writers document the personal and social costs that arise because of industrial change. “Roger and Me” reflects the impact industrial plants have on a community socially and economically. The community experiences all types of economic problems ranging from unemployment to insecurity.

    1.         Companies play an instrumental role in the society they are stationed. Many communities have benefited from the introduction of industries within their areas. In the film, General Motors (GM) was the main social and economic hub in Moore’s town. People in Flint are seen to benefit from their employment at General Motors. Families are able to sustain themselves and provide their necessities. When GM decides to close the plants, the impact is felt when people are caught in a situation of uncertainty. The company has no right to close up as it pleases because of implications the closure has on the entire community.

    Employment provided by companies within a particular community creates opportunities for people to improve their skills and expertise. The skills learnt enable the community to specialize in production and have a comparative advantage over other companies and regions. With improvement in skills, the people are able to complete the production process in a speedy and efficient manner (Fort, et al., 112). This saves time and the company focuses on other issues of importance while still maintaining professionalism. Most companies within a local community benefit from people within that community buying their goods and services leading to massive turnovers.

    People also establish trust and loyalty for the company. According to the film, GM was in Flint since Moore was young. The community had worked with GM for quite a long time and had established a mutual bond. General Motors was also experiencing profits when it decided to close the companies in Flint, a betrayal to the community who have worked together with General Motors and provided their best service. GM owes much of this increase profits to the people in the area who have provided stable employment and are cooperative. An aspect of social corporate responsibility is a company should provide employment opportunities for the local people and improve their standards of living. Contrary to this, General Motors further worsens the living conditions of the people of Flint.

    2.         Plant closings have negative effects on employment and local communities. When the people in Flint lose their jobs, they undergo a process of social, economic and psychological torment. Similarly, when companies are closed, and thousands of people become unemployed in America they suffer many problems (Bluestone, et al., 10). Economic problems do not only affect individuals but also the entire community. Flint’s economy hits an all time low and finds difficulty in its revival. People are evicted, and the real estate sector is negatively affected. Some people decide to leave town for better prospects in other cities reducing the population levels in Flint.

    Local administrations also face financial problems. Once the companies are closed, tax revenues are lowered. Low tax revenues lead to reduced finances for the implementation of projects and policies. This may cause delays in the projects leading to poor development in the region. Maintenance of local infrastructure is also negatively affected. Councils are also forced to reduce costs and consequently lay off workers increasing the unemployment levels. In Flint, they decide to establish a festival marketplace named Water Street Pavilion and a park, Auto world. They all fail because of bankruptcy and set up for a resale. Water Street Pavilion is forced to go out of business, and more people lose their jobs. Local economies ultimately affect the national economy in the long-term.

    Economic problems affect many of the families especially those with sole breadwinners (Alpern, et al., 67). The retrenched workers are unable to fend for their basic needs let alone luxuries. Studies show that a majority of those who lose their jobs are highly likely to experience a significant period of unemployment. Most people resort to loans as they wait for other opportunities. When they decide to take loans to mitigate the ongoing crisis they plunge further into debt. Loans also catch up with them because of the timelines for repayment. Some people are left homeless, as was the case with some people in Flint. Money problems also cause family disputes and separation.

    Lack of employment opportunities has a huge impact on physical and mental health of individuals (Bluestone, et al, 10). Emotional problems are caused by shock from loss of their main source of livelihood. Moore also sees a similar situation when his friends have emotional problems since they lose their jobs. One of Moore’s friends, Ben Hamper, who was an autoworker, suffers a nervous breakdown while at the assembly line. He is later taken to a mental facility for treatment. Psychological problems are caused by desperation brought about by job loss. People develop conditions such as stress and depression.

    Idleness causes increase in crime rates. People become desperate because of the prevalent conditions and resort to crime. Criminal activities are used as a source of income especially among the unemployed who are tired of job searching. Areas where manufacturing companies are closed and many people are retrenched report high levels of crime. In Flint, shootouts, crime and murders, become a common occurrence. When an ABC news show Nightline, is doing live coverage, their van and cables are stolen. Flint is also ranked as the worst place to live in America by Money Magazine because of poor living conditions.

    3.         Governments can implement some policies and strategies to revitalize their economies after experiencing plant closings. Some policies can be established to provide aid and grants to local administrations for purposes of development. Loans can further be extended to individuals at low interest rates. Individuals can start up businesses to sustain themselves. Local authorities can also fund major community projects that will create opportunities for people to make a living. The government can also provide suitable conditions that will attract investors both local and foreign. Such conditions include favorable policies, provision of land, better infrastructure and incentives. Authorities may also boost the areas affected by using various methods such as advertising and endorsing projects to change the image of affected areas for new investments. The government should establish strict regulations that prevent companies from closing numerous plants with a direct impact on the local community.

    In conclusion, the story of Flint is a reflection of other cities and states in America that have suffered from the closure of businesses and industrial plants. GM and other major American companies have also undertaken more closures in the recent past. The effects have been devastating as people lose jobs, crime rates increase, families are separated and suicide attempts in such areas continue to be on the rise. In addition, such regions need to have more than one dependable source of livelihood. Diversification of the economic system to avoid overdependence on one source of income is also very important to avoid any crisis in future. 

    Work cited

    Alpern, Michele, and Marvin Rosen. The Effects of Job Loss on the Family. Philadelphia: Chelsea House, 2002. Print.

    Bluestone, Barry, and Bennett Harrison. The Deindustrialization of America: Plant Closings, Community Abandonment, and the Dismantling of Basic Industry. New York: Basic Books, 1982. Print.

    Fort, Timothy L, and Cindy A. Schipani. The Role of Business in Fostering Peaceful Societies. Cambridge: Cambridge University Press, 2004. Print.

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