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.
(The story summary continues below.)
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.
TheRealNews.com is an independent news network that produces stories of global interest.
is a product of The Consortium for Independent Journalism, Inc., a non-profit organization
that relies on donations from its readers to produce these stories and keep alive this Web