Monday, November 24, 2008

High Cost of Benefits Show Need for Universal Health Care

Republicans are saying the Big Three are going under because they have to add nearly $2,000 per car to pay for union negotiated health care benefits. They are saying this extra cost puts US automakers at a disadvantage compared to foreign automakers who don't have to pay for health care benefits.

Republicans are once again pointing out the problem, but fail to have any ideas on how to solve it. They are basically arguing that America workers don't need health care benefits while ignoring the reason foreign automakers don't have to pay health care benefits.

Foreign automakers don't have to pay for health care benefits because their countries have universal health care. Our employee based health care system puts our companies at a disadvantage on the global market. US automakers should be able to focus on making the best cars, just like automakers in Japan, China, Korea, and Germany do.

Our companies will be at a competitive disadvantage until we have universal health care.

2 comments:

desmoinesdem said...

Please cross-post this at Bleeding Heartland. You are making an extremely important point.

Ben said...

You nail it. I don't see how mandating coverage will solve this problem, as the cost is still shifted to employers, unless business receive tax breaks to cover the aditional cost.