Leif Pagrotsky on Bailing Out the Big Three
Pagrotsky: I think the US automakers are so big and so important it’s very difficult for a government to just stay idly by and watch them die. But I think it’s very important to learn for the future what were the mistakes and how do we avoid them, what are the systemic lessons we can learn. And I think one extremely important aspect is the legacy cost. Today, every car sold is burdened not only by the cost to produce it, the steel, the labor put into it, but the price tag must also include costs for those 70- and 80-year-old people who worked in those industries 10, 20, 30 years ago. And those costs were not paid by those who bought cars at that time. They are paid by the people who buy cars today. And the reason is that in the United States, you have chosen to have corporate-based social security in practice. I think that is old fashioned. It’s unmodern. It is a hinder for flexibility, a hinder for growth, and it is a very bad burden on competitiveness. And I believe this is the most important lesson of this crisis in the car industry to do something about for the future. That cannot be addressed in the short term, but it’s a systemic negative element in the American economy. And it tells me that the story about the American economy being so flexible, that that story is if not a myth, it is at least grossly exaggerated. This is something that locks up labor in individual companies. It makes movement between different industries more difficult. And in today’s globalized economy, change is the key to success, flexibility, rapid adoption to changed competitive pressures, changed technologies, and that’s extremely important for me.
Paying retirement benefits forward is a fatal flaw in the auto industry and the American economy as a whole Leif Pagrotsky believes.
Swipe right to make the connections that could change your career.
Swipe right. Match. Meet over coffee or set up a call.
No, we aren't talking about Tinder. Introducing Shapr, a free app that helps people with synergistic professional goals and skill sets easily meet and collaborate.
Jeff Bezos, the founder of Amazon.com, explains his plan for success.
- Jeff Bezos had a clear vision for Amazon.com from the start.
- He saw the innovative potential of the online marketplace.
- Bezos explains why books, in particular, make for a perfect item to sell on the internet.
Even when they suffer costs in doing so.
- It's commonly thought that the suppression of female sexuality is perpetuated by either men or women.
- In a new study, researchers used economics games to observe how both genders treat sexually-available women.
- The results suggests that both sexes punish female promiscuity, though for different reasons and different levels of intensity.
It has found several bizarre planets outside of our solar system.
- The Kepler program closed down in August, 2018, after nine and a half years of observing the universe.
- Picking up where it left off, the Transiting Exoplanet Survey Satellite (TESS) has already found eight planets, three of which scientists are very excited about, and six supernovae.
- In many ways, TESS is already outperforming Kepler, and researchers expect it to find more than 20,000 exoplanets over its lifespan.
SMARTER FASTER trademarks owned by The Big Think, Inc. All rights reserved.