Excessive Automotive Production

E-Mail to Congress

EIN News says, "Russian Car Giant Avtovaz to Cut Up to 27,600 Jobs. Russian car giant Avtovaz said Thursday it would slash up to 27,600 jobs as it struggles with sliding sales due to the impact of the global economic slump. "Today, 102,000 people work at Avtovaz. Such a number cannot guarantee effective and profitable production, therefore we have agreed to reduce the personnel by 27,600 people," the carmaker said in a statement. The intended cuts represent nearly one third of the workforce at the company, which is 25 percent owned by France's Renault. (google.com)".

Smart Russians! Notice that Avtovaz is pursuing a normal capitalistic philosophy. Their objective is to remain in business. There is a declining market, which they attribute to a global economic slump. My personal opinion is that the economic slump has something to do with it, but there is over-competition in the automobile industry and this has led to excessive production of automotive vehicles.

More significantly, notice that while 27,600 people (one third of the workforce) will be laid off, the Russian government has been silent up to now. I predict that they will maintain silence, because they have been through the socialist/communist experience and know its faults. In fact, with that experience, it appears Russia may now be more capitalistically inclined than is the United States.

Will it be necessary that the US fall into complete socialism, become financially bankrupt, and eventually arise from the ashes in a more capitalistic form? I believe you have the power to control what development, if you have the will to do so.