LaRouche Says: GM’s Critical Capacity Must Be Saved From Shutdown
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General Motors, owned and later controlled by the Morgan and du Pont banking forces since the 1920s, has been shrinking itself for 25 years. Although it has possessed advanced machine-tool capabilities and a skilled workforce, it has often had as its top management, executives—such as Alfred P. Sloan—who were more concerned with financial matters, and the outward appearance of cars, than with production. The auto sector was hit by the Wall Street-City of London banks’ imposi- tion of a “post-industrial society” policy in the mid-1960s (see Figure 1). This policy worsened when President Richard Nixon, on orders from George Shultz and Paul Volcker, broke up the Bretton Woods system by taking the dollar off the gold reserve in August 1971.
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From the 1980s onward, two interconnected processes drove GM: the frenzied drive to increase “shareholder values” through cost-cut- ting; and GM’s “globalization,” under which it set