What is bad for GM is bad for the country

Gary North on the pension and health care crises at General Motors.

It had made a promise half a century ago to pay more for health care and pensions for its employees in exchange for reduced increases in wages. Yearly profits looked good, but no one paid attention to the long-term liabilities until a year ago. GM now needs money to pay its retirees and the heath care of its retirees, and no one wants to invest in GM.

The same thing is happening to Ford on a smaller scale. Who knows, it just might lead to the collapse of Corporate America, about the same time that the federal government goes bankrupt because of, well, spending too much on health care and retirees.

Further evidence that an individual should be paid for his labor IN FULL, from which he provides ALL of his needs, from health to education to saving for retirement. The less the market is driven by consumer choice, and the more it is driven by "promises" and "guarantees" from other people (corproations OR government), the more expensive everything becomes, and the greater chance for distortions and financial disaster.