The Myth of Highly Paid U.S. Auto Workers

U.S. auto workers make as much as their Japanese counterparts.

U.S. auto makers have created a myth by loading their obligations for retired workers into the calculation of a current worker.

U.S. Losing 500,000 jobs per month

The U.S. economy is losing 500,000 jobs per month.

The graphic at the left (courtesy of Paul Krugman) shows the ratio of employed to total population.

"By this measure it’s been a weak economy all along — and now it’s falling off a cliff," wrote Paul Krugman in his blog.

State Governors convening for their annual conference in Philadelphia reported that for every $1 billion in additional Federal government spending, 40,000 jobs would be created.

Just to erase the current rate of job loss, the investment required is $12.5 billion per month or $150 billion per year.

This is why providing U.S. automakers a loan is so crucial. But it needs to come with job preservation. This is no time to restructure on the backs of workers. Surely smart managers can figure out how to create innovate work schedules to preserve jobs.

Saving U.S. Auto Makers Only Makes Sense to Save Jobs

The next version of the "big 3" U.S. auto makers' request for a Federal bailout came into view today. Here's how much each company is requesting:

• GM: $18 billion
• Ford: $9 billion
• Chrysler: $7 billion

In return what will U.S. taxpayers get?At least 30,000 lay-offs by 2012 for GM alone. That doesn't sound like a good trade-off to me.

Republicans from President Bush to Senators Richard Shelby of Alabama and Jon Kyl of Arizona have ridiculed any bailout as throwing good money after bad.

"Companies fail everyday and others take their place. I think this is a road we should not go down. They're not building the right products."

- Senator Richard Shelby.

But should families pay the price for bad management when we are in a recession and jobs are scarce? Is this not the time for government to step in? There seemed to be plenty of money to bailout Wall Street.

Democrats Harry Reid and Nancy Pelosi has been on the other side saying “we want to see a commitment to the future."

"A restructured, competitive American automobile industry will continue to play a crucial role in our national economy and in the global marketplace."

- Speaker Nancy Pelosi

If you work in the auto manufacturing or supply industry or are concerned about what bankruptcy will mean for hard working Americans, now's the time to make your voice heard. Write to your U.S. Representative or U.S. Senators and tell them that you support the use of Federal money as long as it also preserves U.S. jobs.

First time writing to the U.S. Congress? Here's a link about how to write a good letter.