The 4,250 workers at the Chrysler plant in Belvidere, Ill., are laid off for a week because of poor sales. Unemployment in Rock County is running about 17 percent, one of the highest rates in the United States. Mortgage rates in Janesville average 18.5 percent, and new car loans carry 18 percent interest. Union members lean toward concessions. People take whatever menial jobs they can find.
Neighbors gather to help and console each other.
Middle-class families clip coupons, carpool to the grocery store, forgo steak for soup and stew and buy clothes at thrift stores. Social service agencies are strained to their limits. GM announces that only the first shift, about 2,500 people, will be recalled when production of Chevrolet Cavaliers and Cadillac Cimarrons starts here. The scheduled date is May 10 but actually will be June 1 because the plant will not have the right tools and parts on schedule. Schmidt owns three Co-Op Tapes and Records stores, including shops in Janesville and Beloit.