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Accountability. There has been much talk about it, but like so many things, it seems to be lip service. We are going to hold the banks accountable, but only after we've given them billions of dollars that they've fiddled away. We're going to hold the automakers accountable, well, at least GM's CEO Rick Wagoner, but UAW president Ron Gettelfinger? Nahhhh ... let's not get carried away here!
Actually, firing Wagner was justifiable. When the government is majority owner of private industry, they get to make the hiring and firing decisions (does this terrify anyone else?). But the government hasn't bailed out the UAW - they have no place to make demands that he step down. In fact, the UAW (and unions in general) have done quite well in an economy that has caused grief for most everyone else.
Ask any union member and they will tout the wonders of the union as the fearless champions of the downtrodden working man. Look at unions from an economic standpoint and you'll see monopolies raising wages above competitive levels.
Yes, there was a time when unions were necessary - when working conditions were deplorable - when wages were shameful. Unions won higher wages and better working conditions for their members - members who were without any other recourse. But like all things in life, there was a price - a reduction in the number of jobs available in unionized companies. It's a matter of the basic law of demand: unions successfully raise the price of labor and employers purchase less of it - or find a way to purchase it somewhere else (overseas) for a lot less.
What do unions cost our economy? In 2002, full-time nonunion workers had usual weekly earnings of $587, 21 percent lower than the $740 earned by union members. Looking just at the UAW, the Heritage Foundation's Center for Data Analysis conducted a study in 2007 that found GM was paying workers a combined total of $73 an hour, factoring in benefits like health care and pension payments. That's compared with the $45-$50 an hour foreign automakers in the U.S. are paying workers, including benefits. And we wonder why GM and Chrysler are having financial problems?
Of course, the UAW is not the only factor in the auto industry meltdown. There are issues of too many dealerships, "old" automotive technology and the decline of consumer spending due to the credit crunch and overall economic turmoil just to name a few, but it really is time to take a look at the economic impact of unions. You tell me - would you rather see 10 people employed at $73 an hour, or 16 people employed at $45 an hour?
Actually, firing Wagner was justifiable. When the government is majority owner of private industry, they get to make the hiring and firing decisions (does this terrify anyone else?). But the government hasn't bailed out the UAW - they have no place to make demands that he step down. In fact, the UAW (and unions in general) have done quite well in an economy that has caused grief for most everyone else.Ask any union member and they will tout the wonders of the union as the fearless champions of the downtrodden working man. Look at unions from an economic standpoint and you'll see monopolies raising wages above competitive levels.
Yes, there was a time when unions were necessary - when working conditions were deplorable - when wages were shameful. Unions won higher wages and better working conditions for their members - members who were without any other recourse. But like all things in life, there was a price - a reduction in the number of jobs available in unionized companies. It's a matter of the basic law of demand: unions successfully raise the price of labor and employers purchase less of it - or find a way to purchase it somewhere else (overseas) for a lot less.
What do unions cost our economy? In 2002, full-time nonunion workers had usual weekly earnings of $587, 21 percent lower than the $740 earned by union members. Looking just at the UAW, the Heritage Foundation's Center for Data Analysis conducted a study in 2007 that found GM was paying workers a combined total of $73 an hour, factoring in benefits like health care and pension payments. That's compared with the $45-$50 an hour foreign automakers in the U.S. are paying workers, including benefits. And we wonder why GM and Chrysler are having financial problems?Of course, the UAW is not the only factor in the auto industry meltdown. There are issues of too many dealerships, "old" automotive technology and the decline of consumer spending due to the credit crunch and overall economic turmoil just to name a few, but it really is time to take a look at the economic impact of unions. You tell me - would you rather see 10 people employed at $73 an hour, or 16 people employed at $45 an hour?
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