The Unions and the Economy
The future success -- or failure -- of the U.S. economy rests on the dual nature of the American worker, both as someone who makes products and as a consumer who buys them.
New School economist Richard Wolff says today’s dilemma is that even if the auto unions get some seats on the boards of Chrysler and General Motors, the pressure will be immense to reduce wage levels dramatically, thus setting lower pay standards for other parts of the industrial sector.
Wolff says the likely decline in wages will further harm the economy because fewer and fewer Americans will have the resources to buy the products that the workers make, setting in motion a dangerous downward spiral.
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