Posted on 09/16/2023 10:23:05 AM PDT by ChicagoConservative27
On Friday’s broadcast of MSNBC’s “Andrea Mitchell Reports,” NBC News Business and Data Reporter Brian Cheung stated that auto workers are pushing for higher wages in part due to the massive inflation in recent years, but also because they “want to make sure that they can extract as much now, given the fact that we’re not past high inflation.”
Host Andrea Mitchell said, “[L]et’s talk about the backdrop here: The workers gave up a huge amount in salary and pension benefits back when there was the government bailout. The auto industry was going bankrupt and the White House stepped in and they ended up with a bailout, a federal bailout. Now they’re making money, but they’re also transitioning to electric vehicles, they see their jobs disappearing with robotics, and they want a 40% increase, which sounds huge. But they say this is catchup. At the same time, you’ve got huge profits and salaries for the CEOs.”
(Excerpt) Read more at breitbart.com ...
Private union demands can bankrupt companies. Public union demands result in higher taxes.
OBAMA killed GM & hammered other companies
GM dealerships all over the country were closed for good...Jobs lost, etc. Sales taxes lost, etc.
IIRC-—OBAMA gave the “NEW” stock to the UNIONS.
Therefore-—the STOCK HOLDERS ARE THE UNION MEMBERS & THEY ARE SUING THEMSELVES.
IF a CEO gives up $10 MILLION in pay ——That becomes $66.66 a YEAR to each of 150,000 union members.
MATH IS HARD-—
The realize that a 40% pay increase will increase the inflationary spiral, right?
They are doing what greedy, stupid people do: They grab for what they want—without any concern for what it does to others.
So, high inflation only exists for union workers. Got it!
Somehow, the government was able to change the priority during bailout. Unions and stockholders got priority over bond holders.
And if they succeed in “getting what they can”, that will only exacerbate and prolong inflation. It’s called the “wage/price spiral.” Inflation occurs because of too many dollars chasing too few goods, so pouring even more money into people’s pockets will only make the problem worse UNLESS wage increases are accompanied by corresponding increases in productivity. But that’s not what we’re talking about here; the UAW members want more money just because they want more money. We cannot allow that mindset to take hold or else we’ll never be rid of the high inflation, plus those on fixed incomes would be crushed in the process. Going down this road is how you end up with the average person making a million dollars a year, but a loaf of bread costing a hundred dollars, while the now minuscule by comparison fixed incomes of millions of retirees cause them to be left behind, starving to death in the streets.
Exactly—that is what the monetarists miss—once the inflation wildfire starts everybody in the economy tries to pour gasoline on it....
There is no way to justify a 40% wage increase.
This is just an attempted raid on corporate profits that will have to be paid for by massive price increases to consumers.
It is an exercise in applying raw power to raid the carmakers with backing by the democrat president and federal government.
Think about it, what employee will say either on their own or thru a union, I don’t want all I can get because inflation will go up, because I care what happens to other people.
No employees think that way, nor should they, it’s management’s job to keep things under control, that’s why they make more money than regular employees.
The UAW employees know this, 40% of their current contract has been eaten up by inflation, which they didn’t cause.
They know their jobs are on the line because of the Government’s push for EVs
They know the car companies are selling cars for a loss while cutting back on cars that sell for a profit, it makes no sense to them.
They know other unions and companies have recently settled for nice raises.
They know the car manufacturers are making big profits.
They know the car executives are passing out big raises and bonuses to other executives.
Managment and primarily the Government have created this situation, it’s not the employees job to bail them out.
We know that in every negotiation situation you always put the offer you are willing to settle for upfront before negotiation begins.
The 40% is the opening offer, will they get 40% probably not, if they offered 20% would they get that, probably not, but they might get 30% if they offer some really high number and settle for less.
It’s called negotiation.
The we should agree that there should be no credits for electric cars or bailouts for them next time around.
Sure, we will eat a little inflation, but many of them would selling pencils at a street light in four or five years.
That’s fine with me.
And they never connect electing democommietards to the economic situation. Though the comparison between President Trump a few years ago and BiteMe now should be pretty obvious to them.
From what I’ve read, EVs require far few parts to manufacture, which means you need fewer employees, the rank and file see that and want all they can get right now, it’s human nature.
Ross Perot was right; NAFTA and other trade agreements have created a giant sucking sound for good American Jobs.
In 5-10 years the overall number of employees in Union States will go down, the number in right to work states will go up.
The Big 3 automakers have plants in Southern Right to Work States and those are still working.
Filing for bankruptcy does not mean you are out of business, I would not be surprised to see GM, Ford, Stellantis file for bankruptcy, sell of their plants in Northern States and expand their plants in Southern States, agree to the union demands in the short term and plan to eliminate them over time.
From what I’ve read, EVs require far few parts to manufacture, which means you need fewer employees, the rank and file see that and want all they can get right now, it’s human nature.
Ross Perot was right; NAFTA and other trade agreements have created a giant sucking sound for good American Jobs.
In 5-10 years the overall number of employees in Union States will go down, the number in right to work states will go up.
The Big 3 automakers have plants in Southern Right to Work States and those are still working.
Filing for bankruptcy does not mean you are out of business, I would not be surprised to see GM, Ford, Stellantis file for bankruptcy, sell of their plants in Northern States and expand their plants in Southern States, agree to the union demands in the short term and plan to eliminate them over time.
Welcome to the 1970s - cost-push and wage-expection inflation
I’m going to assume that 40% is just an opening bid so that the a compromise of 19% looks like a win-win.
Wrong.
There is no "inflationary spiral".
Inflation is caused today entirely by Federal Government deficit spending and the debt financing arrangements, which amount to printing fiat money and passing it out to the most useful government supporters. The connected inner circles win big from inflation, while the general public loses.
It has been said, "If you rob Peter to pay Paul, you can count on support from Paul". That is what inflation is all about.
Debasing the currency is a sophisticated form of theft. Inflation stops when the government stops the theft. Or at least cuts back the rate of theft.
In the meantime, any group with political power tries to evade inflation. Local governments are protected somewhat by automatically rising property taxes and sales taxes which keep the revenue coming in at approximately the same rate as inflation. And they lobby for special programs to be funded by the Federal government.
Corporations raise prices and reduce unit quantities or product quality to cope with inflation. And they lobby for special programs to be funded by the government.
Unionized work forces strike for higher wages to protect their members from inflation. And they lobby for special programs to be funded by the government.
Individual workers and retired people are pretty much screwed. The inflation system is liquidating them. Ooops, I am in that group myself. Most likely, so are you. We get a lot of BS explanations about the causes of inflation, which are intended to disguise who benefits and who loses.
"It is big club and you are not in it" (George Carlin)
Inflation is theft. It is intentional. It is caused by government. Government debases the currency because it is easier and provokes less opposition than directly raising taxes.
This is all true, but what really gets to me is that next time I buy a new vehicle, I’m really the one bailing both sides out.
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