Manufacturing: Not So Good
One of the myths of the Obama economy is that there's good news is manufacturing. Former Obama Car Czar Steve Ratner explains why the trends remain negative.
...workers are being asked to and are accepting the idea of lower wages... In Chattanooga, Volkswagen showed up with 2,000 new jobs... every one of those workers started at fourteen and a half dollars an hour...
So I'm not as sanguine as some others about our ability to compete without unfortunately having to compete on price... And so for GM, compared to the $55 in Michigan, In Mexico they pay $7 an hour... in China four and a half dollars, in India a dollar...
Separately, Rattner said last year that one of the mistakes he and the Obama administration made in the bailout was not cutting UAW wages.
We asked all the stakeholders to make very significant sacrifices,” Rattner said. “We should have asked the UAW to do a bit more. We did not ask any UAW member to take a cut in their pay.
Too bad more wasn't done to bring UAW wages down to market levels.