August-September 2009      Volume 30, Number 4


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Left: Employee at a Chrysler plant in Warren, Mich. The wages of auto workers are only a fraction of production costs.
Photo of auto worker by Bill Pugliano / Getty Images. Photo of SUVs in storage by Chip Somodevilla / Getty Images.
   
By Linda Averill

To hear pundits talk, the U.S. economy will rebound after the stock and credit markets heal. Consumers will then regain "confidence."

But the bankruptcy of General Motors (GM) and Chrysler — icons of U.S. industrial might — are a sign that the nation's problems go deeper than cash-strapped banks or fickle shoppers. The real economy is seriously sick — and it's going to take more than bailouts and tax credits to set things right.

Car and truck sales are down 40 percent from two years ago and inventories are piling up. Just one example is that five months worth of Dodge Rams sit unsold. Gluts like this are why GM and Chrysler closed 16 plants and shed tens of thousands of jobs in recent years. As both companies "recover" from bankruptcy, more downsizing will follow.

Read the complete article.

WEB EXTRA!

Girls just want to have fun
A conversation with pulp pioneer Ann Bannon, who brought readers tales of lesbian love and lust — in the 1950s!
Credit: Illustration by R. A. Maguire

More Featured Articles:

Pakistanis caught in the crossfire
Beseiged on all sides — by the Taliban, U.S. drone planes, and their own military — ordinary Pakistanis organize to survive.

Dominican Republic: rights fight
In the Dominican Republic, basic rights of women, immigrants, sexual minorities, and labor are in danger from state- and church-led attacks on the constitution. English, español


Fiercely anti-establishment rap
Reviews of hip-hop performers with a conscience from Michigan, the Pacific Northwest, and Palestine.

For links to all of this issue's stories, click here.

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