![]() Imagine what a mess social security would be if, over the next 10 years, the US workforce became 1/2 as large, while keeping all the retirees? Thank goodness for immigrants and children to work when I am old and can’t □ The result is a double whammy of increasing health costs, coupled with a shrinking work force – Ford’s workforce is 50% smaller than its peak, and GM 60% smaller. Only the active workforce can produce the cars that earn the profits that pay for retiree health care, so the more retirees per active worker, the more profit per car required to pay for retiree health care. The UAW did something very stupid over the last 40 years: they did not demanding that the Big 3 fund health care each year, based on the actuarially estimated costs, as the pension has been funded. The Big 3 did something very stupid over the last 40 years: they signed contracts promising to pay retired workers’ health care before the age of 65, when there is no Medicare program to cover most of the cost. However, Toyota is spending 10% more for profit sharing, so that is a wash.
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