The auto giants are asking for bailouts in part due to the high cost of health care expenses. Economist Dean Baker said General Motors would
have saved $22 billion over the course of the last decade if they paid the same price as a company in Canada. That would be a 48 percent reduction in health care costs. U.S. auto makers spend more per car on health care than on steel.
Besides the high costs of health care, the auto giants must compete with companies in countries that provide more affordable medical insurance. Globalization compels companies in the U.S. to reduce health care costs. The U.S. is seen as a wealthy nation. Of the 6.3 billion people in the world, the U.S. has only 0.3. There are another 6 billion people that want what we have and many are working very hard to take it. Business owners can’t afford to be complacent on reducing health care expenses.
