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FIGURE 2

LaRouche Says: GM’s Critical Capacity Must Be Saved From Shutdown

Washington

Montana

North Dakota

Maine

Oregon

Idaho

Minnesota

41

Vermont

New Hampshire

Wyoming

South Dakota

Wisconsin

Michigan

42

New York

Massachusetts

Rhode Island Connecticut

Iowa

55

2

Pennsylvania

40

Nevada

Nebraska

Ohio

51

11-12

New Jersey

California

Utah

Colorado

Kansas

8

39

Missouri

Illinois

Indiana

Kentucky

9

Delaware Maryland 54 Washington DC West Virginia Virginia

Arizona

New Mexico

50 Oklahoma

53

Tennessee 52

North Carolina

Arkansas

1

South Carolina

10

Mississippi

Alabama

Georgia

Texas

Louisiana

FL

GM’s Breakdown

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.

MICHIGAN

38 36-37 29-35

26

18-23

27-28 24-25

13

16 17 14-15 44

43

5

INDIANA

7

3-4

48

49

47

OHIO

45-46

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

6

32 Economics

EIR

May 6, 2005

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