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Old 02-23-2009, 03:21 PM   #3
BarTopDancer
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Well, I doubt we're ever going to see that damn train. But construction can help the economey... Let's use Caterpillar as an example they (are my old company's largest client...and as I mentioned elsewhere, their slow down directly effected us.)

Construction work uses Caterpillar equipment. Caterpillar is a company that has been seriously hit by the downturn in building and construction. CAT lays people off and they aren't hiring. In turn, companies like my old one have a slowdown in work, as they are no longer needed to relocate employees. Employees aren't being relocated, therefore movers, storage facilities and real estate agents aren't getting work. These companies have to start letting people go. Since those people no longer have income to spend, and stop going going out, and buying cars.

Now Toyota or Honda (or Ford, Chevy, etc...) start letting people go. Cars aren't being made, so the suppliers of parts (steel, rubber, electronics) have a slowdown, start laying people off and stop hiring.

In turn, companies like my old one have a slowdown in work, as they are no longer needed to relocate employees for companies like Toyota and Honda. Employees aren't being relocated, therefore movers, storage facilities and real estate agents aren't getting work. These companies have to start letting people go... later, rinse, repeat.

The rail line in CA can help the construction worker in CT through the trickle down effect. When CAT starts hiring people, they hire all over. People start moving, people start making money, they want things requiring construction.
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