UAW's Failed Demand Fuels Wage-Price Spiral

The United Auto Workers (UAW) strike, now in its sixth week, has damaging short-term effects on the global economy. However, if the UAW secures their negotiation demands, including a 40% wage increase, a shorter work week, and the elimination of the two-tiered wage system, the impact on the U.S. economy and workforce could be even worse. The elimination of the two-tiered wage system, in particular, would result in everyone in a given role receiving the same compensation, regardless of experience or time in the position. This demand, influenced by failed Marxist ideas, would weaken the U.S. auto industry's competitiveness and productivity. The article highlights the disastrous economic effects of similar policies in Mao Zedong's China and emphasizes the importance of incentives and competition in fueling productivity and economic growth.