A Nation on Wheels: The Automobile Industry in the United States

1809 Words Sep 30th, 2008 8 Pages
The automobile industry has brought the United States economic growth due to the impact that automobiles have made on society. There has been a plethora of jobs associated with the auto industry, including manufacturing, auto repairs, insurance, and the development of roads, sales, and auto parts to enhance vehicles. Cars, trucks, and SUVs’ have become a way of life for people and have made an additional economic impact by becoming the primary means of transportation for consumers to commute to and from work, vacations, and travel between destinations. Most family households live on a budget and they must make the decision of how much of their budget they can allocate to transportation costs.
The automotive industry is considered elastic
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Some positive externalities in the auto industry would be continued employment of not only manufacturing jobs but auto repair, service
A Nation on Wheels 4 stations, retail sales, and lower costs in the economy due to the ability to transport goods. On the other hand negative externalities such as pollution, traffic congestion, time in repair shops, environmental damages and accidents exist. The transaction of purchasing a vehicle is a positive externality because it has a greater benefit to consumers than the cost of making the vehicle. Effects are positive to the economy for reasons such as keeping people employed. By keeping people employed they make more money, they spend more money, some households would have an opportunity to have 2 vehicles and having an auto makes consumers mobile and productive.
According to the United States Bureau of Labor Statistics more than one half of the U.S. autoworkers are employed in the Midwest. The states of Michigan, Indiana, Ohio, Wisconsin, and Illinois make up the Midwest Region, the leader in the automotive industry. This region also has the industry’s highest wages: since 1992, Midwest auto parts producers’ average weekly wages have been at least 30% higher than those of their Non-Midwest counterparts. (2007)
Employees of the Big 3 automakers, General Motors, Ford, and Chrysler have enjoyed the benefits of
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