More on the Big Three and Military Production

Defense Tech has more on the lack of direct ties between a collapse of the major US auto makers and national security.

In the comments section, the argument is made that the supply base would fall apart and this would have an effect on military production. I mentioned this last week, and it’s a fair point.


  1. This is being beat to death in the press but I will point out that Chapter 11 bankruptcy is not a collapse. It is a reorganization under the law. If an automaker were to reorganize under Chapter 11, the last thing they would do is get rid of lucrative government contracts.

  2. I call BS on the whole concept. Markets abhor a vacuum, and if the Big-3 collapse, someone will either step in to fill a void or a new company or campanies will step in to provide the goods or services.

    If there is a market for a particular product or service, those workers with the appropriate skills will not lack for employment for long, if at all. It might mean relocation or a change in pay grade, but it will remain valid and valuable.

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