Defending a Small Town « The Casone Exchange

June 3, 2008 09:31 PM EDT by Cheryl Casone

Defending a Small Town

I was watching GM shares today go higher on news they would close four plants, lay off workers, and scale back production of the gas guzzlers. So, I agree with the latter, we are waking up to the fact gas prices are going to remain higher, and we've had it cheap for awhile. Those days are over.

But there was another realization I had as I read through the wire copy this morning......they were shutting down a plant in Janesville, Wisconsin. General Motors is no longer the town's biggest employer, but still the closing of the plant will is going to sting the town of 63,000 outside of Milwaukee and not far from Chicago. I have cousins that live there, and I actually spent some time with them last week for a sad occasion in Texas. I have not been there, but have heard about it for years, especially those emails about the cold blast of air that is heading for the East Coast. I always get the updates.

People that own GM and Ford shares, the few that still do anyway, want financial results. It is my guess Presidential candidate John McCain wants results. It's tough to win votes in small towns when they are feeling the direct effect of a slower economy. Barack Obama will no doubt take advantage of that. But, I digress as usual.

My Mother grew up in a small Texas town where we all met last week, and I think about the corner grocery, and the Dairy Queen, and the car dealership, and the Texaco. What becomes of the people that own those businesses? What does that mean for the rest of us? I grew up in Dallas and Phoenix, very large cities by most standards, but thanks to my family and my holidays on the farm in Texas with my grandparents, I know that small town. Therefore, I know all of them.

This isn't good folks. I worry about our competitive advantage. Sure, the Chinese are developing a strong middle class, and many companies benefit from that, but at what expense are we willing to see our corporations do well? At the expense, and possible demise of towns like Janesville?

I have to wonder what John McCain is going to say when he ramps up his campaign again now that the Democrats are squared away? He's got a tough fight ahead. Just like those small towns who are the most vunerable to a slower economy.

CC

4 Comments

Mark

The more politicians stay out of the economy the better. All these candidates are senators and all have been babbling about fixing anything and everything for nearly the last two years. As senators, maybe they should just go ahead and fix everything now and we'll vote accordingly.

June 4, 2008 at 1:04 pm

M Wait

According to Obama, we in the small towns are to embittered to make a difference for the rest of US. And speaking from a small town.. it is not the corporations that are incrementally reducing our potential to compete - but environmentalist opposed to farming, politicians wanting to use 'carbon credits' and the inability to compete in a global market. Does anyone really think Russia, China or South American countries, whom we compete against, to be held accountable for their pollution?? 34% of the smog in California, is from China. We are exporting jobs and importing pollution. Who really would want to do any manufacturing or recover any natural resources in the US??

June 4, 2008 at 11:30 am

james

Miss Casone, I'm a big fan of yours and FBN. You are truly a gorgeous lady. I think all the report failed to mention the major reason our auto makers are in the red is caused by the Union, not the oil price. If you look at the car maker from Japan, the workers are non-Union'ed. No one likes to see anyone loosing their job, but we need to look at the root cause. It is easy to point the finger to oil, but that is not the cause for GM; FORD; or Dodge to close plants. The price of oil, as you well know, if based on demand and supply. We can thank our Congress for that! And looking at where the politicians is taking this country to (socialized society), small car is not going to help either. Folks in this country better start to realize where the country is headed. 4 years of either McMcain or Hussein will put USA in a deeper economic crisis than anyone is willing to admit. I am willing to bet, 4 years from now, there will be more plant closing and small town sadness.

June 4, 2008 at 11:07 am

Justin

It's getting bad. I feel sorry for the people that don't know what's coming. Money supply has grown faster than wages for decades. The inflation tax is hitting middle America the hardest. The federal reserve creaters are getting just what they wanted. Democrats push for even more regressive tax rates and more social programs at the expense of economic growth. It also leads to an export of jobs overseas where the cost of doing business is much lower. It's a no win situation, and with our ever increasing debt (public and private), we are in for a major correction. They only way our economy supports it is through easy credit via the fed. I'm prepared though. People really should give Peter Schiff a listen. He sounds like a total doom and gloom nut, but when you let him make his case, it's hard to argue with. In an uncertain world, the only thing with real value is the land. I'm glad our family still has some. I guess that's why the call it "real" estate. God bless Texas. God bless the people that have preserved the olds way of life. God bless those who live modestly, stay out of debt, and will be there to help others when our false prosperity bubble pops.

June 4, 2008 at 12:11 am

about this blog

Cheryl Casone joined FOX Business Network (FBN) in September 2007 as an anchor. Prior to FBN, Casone served as a correspondent for FOX News Channel’s (FNC) business unit and was a regular guest on FNC’s Your World with Neil Cavuto. Casone brings years of experience covering finance, business, and consumer news to FBN.
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Defending a Small Town