The Real Economy: Volume 58
Completing the renovation of Detroit: Transforming the auto industry
THE REAL ECONOMY |
Ten years ago, the U.S. government sponsored an orderly bankruptcy of General Motors and Chrysler, and their lending arms during the most intense phase of global financial crisis. That bailout—fueled with roughly $80 billion in taxpayer money—forced a sweeping restructuring of the domestic auto industry and set the automakers on a path to profitability that came more quickly than even the most ardent skeptics imagined.
But few could have predicted the challenges that the auto industry faces today. From electrification to autonomous driving and changing consumer tastes, U.S. automakers are grappling with profound change. It is clearly time that they move toward consolidation and reshape the industry. But that restructuring will, in turn, hit workers as their share of production declines. Worker dislocation will require a set of policies to cushion the effects of a transformation that will only intensify following the end of the current business cycle.
In this issue of The Real Economy, we examine the challenges and economic impact the auto industry faces. In addition, we provide analysis on middle market business sentiment; we explore the emergence of retransmission fees in the broadcast media sector; and in our trend watch feature, we look at the impact of tariffs on middle market businesses. Download the full issue.
IN THIS ISSUE
Automaker industry changes and challenges are explored along with the resulting economic impact on its vast network of suppliers.
Broadcasters are making up for their ad revenue shortfalls by placing emphasis on the fees paid by cable, satellite and streaming platforms.
We examine business sentiment data to understand what’s on the minds of executives related to ongoing trade tensions.
Business sentiment among middle market executives rose in the first quarter 2021, according to the current Middle Market Business Index.