Friday, November 4, 2011

How do we organize a modern day "Tea party" ?

Saving Detroit means saving it from bankruptcy. As we have seen with the airlines, bankruptcy can allow operations to continue while helping to shed fatally unsupportable obligations. For Detroit, this means release from ruinous wage deals with their astronomical benefits (the hourly cost of a Big Three worker: $73; of an American worker for Toyota: $48), mive pension obligations and unworkable work rules such as "job banks," a euphemism for paying vast numbers of employees not to work. Detroit needs to cut costs and focus on quality and the consumer which cannot be done with high labor costs and inflexible unions.

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