The Big Three carmakers & national healthcare.

There is a terrific article in today’s Salon by writer Andrew Leonard explaining  how national healthcare could have saved Detroit.

Using a 1986 New Yorker article The Risk Pool by Malcolm Gladwell, Leonard explains how the company that in 1962 was paying benefits at a ratio of one pensioner receiving benefits to 11.6 employees was last year ratio of 3.2 pensioners to 1 employee.

 Having read this article, I believe I now understand what the Big Three are saying when they argue that the cost of paying benefits of hundreds of thousands of retired workers is what prevents them from being able to compete with foreign carmakers.

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