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Written by Jeff Lebo
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For years the United Auto Workers Union has forced US automakers to pay out too much in salaries, benefits and more. Now, in 2008, all of their greed has finally crippled the industry.
The union constantly pounds on the automakers to provide ridiculously high salaries to their workers. Not only do they have to pay the current workers very, very well, but also the retired workers AND the retired worker's spouses. It is high time for a change in the US automobile industry. The union keeps US automakers from making changes to vehicles fast enough to keep up with their foreign counterparts. GM going bankrupt will be the best thing that could happen to GM. People will suffer in the short-term, but the country will be better as a whole down the line as GM restructures without the UAW dictating what they have to do. |
Comments
Now that is funny.
I haven't been to an auto show in more than 30 years. I don't care about the American junk, the Japanese junk or the German junk. The laws of physics do not change style from year to year and there is nothing anyone can do about it.
In World War II the US, the Japanese and the Germans could build planes that flew 400 mph. So why are we supposed to care 60 years later because they keep changing cars that roll along the ground at less than 130 mph. If anything consumers should be complaining about being ripped off.
Our economists don't talk about what we have lost on the depreciation of that garbage. There have been 200,000,000 cars in the US since 1995. At $1,500 per car per year that is $300,000,000,000 lost every year. That comes to FOUR TRILLION DOLLARS since 1995.
How many mortgages could have been payed off with that? Of course the depreciation of cars can't be totally eliminated. But if they made cars last twice as long and cost half as much by eliminating useless variations that would be 1/4th as much depreciation. THREE TRILLION DOLLARS could have been spent on something else.
Those economists and union leaders don't talk about everyone understanding accounting either.
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