Author Name: Anurag Bhullar
The persisting economic condition seems to be taking a lot of time before allowing things come back to normal. After a number of huge organizations of Banking and financial sector giving in to the economic downslide, the latest victim surfacing is the ‘Detroit headquartered’ General Motors. Speculations that the auto-giant will file for bankruptcy are intensifying.
With this, the unemployment rate is surely going to shoot up. This is because the automobile industry hires nearly 3.5% of the total employed population of Michigan and with one of the top players, GM going down; the number of jobless people will rise inevitably.
Detroit economy is already facing the brunt of decline in auto sector since past eight years. In this situation, failing of GM can prove to be the last nail in the coffin in wrapping up of the city’s economic state. The current deficit of Detroit stands at $132 million, which is $6 million more than the last month’s value.
The ‘quite possible’ failure would have been laughed at only a few months back but it may be a reality in coming days.
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