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Week of November 9, 2008 - November 15, 2008

An Automakers "What if . . ."


What if, as part of any plan to bailout American automakers, the United States government takes on all of their medical benefit obligations? Here are some good reasons for trying this out:

This would include medical benefits for a few million people, current and retired employees. It cuts $2,000 to $3,000 from the cost of every American made car and gives American made products a boost against foreign companies. (I may have those stats wrong, working from memory here.)

American cars are not all gas guzzling mistakes, there are some good options, including hybrids, out there. This move gives automakers a reprieve from the obligations that emerged in the booming American postwar economy, which are no longer sustainable in a global economy where other countries administer government medical plans that do not directly affect auto costs.

In the 90s, Ross Perot suggested that the US government not develop a single government plan for universal health care, as the Clintons proposed. He wanted to let all 50 states, or just a few, maybe with smaller populations than California, try some pilot programs and let the government pick from the most successful. Taking on automaker health care kind of follows that idea. If this program, maybe with some government adjustments to it, doesn't work, the affected population will eventually diminish.    

If it does, it could pave the way for imitation by the federal government, imitation of an already working plan.

My husband came up with this idea over breakfast. I think it's great. And it doesn't just pay or punish the auto industry. It focuses on workers and car costs.

Thoughts, anyone?
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IClaudia

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