[lbo-talk] Fitch on unions & health insurance

Doug Henwood dhenwood at panix.com
Wed Dec 28 08:10:03 PST 2005


jmhayes at j-o-r-d-a-n.com wrote:


> > If the government paid everyone's health insurance bills,
>> as those in Canada and most of Europe do, Detroit's Big Three
>> could save at least $1,300 per vehicle. Profitability would return.
>
>Where do people come up with this stuff? Where does this guy think
>the money would come from for "the government" to pay it? Are they
>just going to print it? Are they just going to get it from a
>different industry than auto?

Fitch is a smart guy, and I'm sure he knows that the money would come from broad taxation. Everyone who follows the auto industry quotes figures like this - US factories are at a significant cost disadvantage with Canada, for example, despite being on the same continent and paying similar wages.

Doug



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