With Chrysler in bankruptcy and General Motors facing a similar prospect, the Obama administration is gambling much on the hope that a streamlined U.S. auto industry can survive.
However, New School economist Richard Wolff says the proposed restructuring is a bigger gamble for autoworkers who have agreed to trade their health care funds for risky shares in the revamped companies.
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Wolff says the many union givebacks – especially the prospect of new younger workers hired at about half what older workers now make – could have dire consequences for the larger American economy as fewer and fewer workers can afford a middle-class lifestyle.
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