US Auto Industry and Unions

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US Auto Industry Costs

As is commonly known, the US auto industry is producing more expensive cars than the competition. This price difference of $20-$30 per worker per car is due largely to labor costs. However, reducing labor costs does not appear to be a government-approved part of the auto industry solution to become profitable.

Let us suppose that the present Democrat President and present Democrat Congress decree that the US auto industry will be taken over by the government and given to the unions and their members. Call it employee ownership, a common happening in business.

Will labor unions then reduce labor costs, as needs to be done, in order to make their cars more competitive? Or, will they keep their current wage scales in place and eventually go out of business. If the latter, then will the US auto industry become another huge government welfare program. Taxpayers want to know.