** Thanks to my EMBA group for coming up with some of the numbers in this post. Man, they’re smart! **
Note this graph from this article:
See that? People are losing jobs in the auto industry. Almost 500,000 since 2000. Why?
Well, US auto manufacturers’ costs are high compared to their foreign competitors. This means they make less money, per car (and sometimes lose money, per car).
Which costs are higher?
Pension and healthcare benefits for retirees are one example. US auto manufacturers have to pay this and foreign competitors don’t. How much? $1,500 per car.
Another cost that’s higher is wages. Toyota’s total labor cost per hour is $35. GM’s is $81. That equates to 1,000 per car.
So, just those two areas alone cost GM $2,500 per car more than Toyota.
GM produced 9,370,000 cars in 2007. An extra $2,500 per car would mean an extra $23,425,000,000.
GM lost $38,732,000,000 last year. That extra money would have cut that loss by 60%. The extra $23 billion would have meant fewer jobs lost.
So, why on Earth would GM pay so much in wages and benefits that they have to layoff workers? Is it a vast corporate conspiracy?
That’s right, the unions have negotiated themselves out of 500,000 jobs. They keep the company’s costs so high, it cannot even afford to do business. And therefore, has to lay people off.
Anybody know the definition of a parasite? “An organism that grows, feeds, and is sheltered on or in a different organism while contributing nothing to the survival of its host.”
Sounds like a union to me.
In addition to minorities, shouldn’t laborers hate Obama, too?