Slippery Slope: Obama, Big Three Auto, and Health Care

[Pryderi]

Obama could bail out the "Big 3" auto companies and set the stage for solving the health care crisis.

One of the biggest costs to the auto makers is the healthcare costs of employees and retirees. Obama and the democrats could offer to subsidize/nationalize the healthcare costs for them.

Auto plants have moved to Canada because they have nationalized healthcare that cuts costs. The Obama administration can make the argument that subsidizing the auto companies health care costs helps keep them solvent and create a "slippery slope" to universal healthcare.

[democrattotheend]

1. In theory, you're right

But the problem with the Big 3 right now is cash flow and it's pretty urgent...health care reform would help in the long run but it's not going to solve the immediate crisis.

[JuniperLea]

3. If they didn't have to pay for healthcare benefits...

They'd have a lot of money, now, right away. What they pay on a monthly basis is astronomical.

[Pryderi]

5. Detroit’s Big Three automakers spent $8.9 billion on health care in 2007, compared with a record $11

billion in 2005.
http://www.healthcare-now.org/2008/11/big-3-uaw-ask-for-health-trust-help/

[JuniperLea]

6. I think it makes sense to make this change first, before anything else...

The influence of this one change would be so far-reaching. This would put money back into America's cash flow very, very quickly. You'd see a huge difference in 30 days.

[babylonsister]

2. This is one reason why healthcare will be deemed a priority:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4526005&mesg_id=4526005

[Pryderi]

4. I agree. The auto industry's crisis provides the impetus for going down that road now.

This is an opportunity.

[Pryderi]

7. Is this thread worthy of 2 more votes? n/t

[blue_onyx]

8. Well, GM cut off retiree health care

so that's not an issue for them. But yes, this is a big problem. It's a big burden for US automakers that foreign auto companies don't have to deal with. Our Governor pointed out that more vehicles are made across the Detroit River in Canada than in Michigan now because of health care. Universal health care needs to be dealt with as soon as possible.