BIDEN’S ’70S SHOW: Striking unions impacting the economy at a level not seen in decades.
The UAW has taken a somewhat novel approach to this walkout, targeting just three factories and involving less than one-tenth of the workers at the Big Three automakers’ membership. However, if things heat up and it turns into an all-out strike, bringing into play the 146,000 union members at Ford, GM and Stellantis, that could change things.
In that case, Shepherdson sees a potential 1.7 percentage point quarterly hit to GDP at a time when many economists still fear the U.S. could tip into recession in the coming months. Auto production amounts to 2.9% of GDP.
A broader strike also would complicate policymaking for the Federal Reserve, which is trying to bring down inflation without tipping the economy into contraction.
Related: “In the name of ‘economic justice’ Fain would bankrupt the Big 3 again. Here’s the math: $136 * 32 hours per week * 52 weeks = $226,304. Note the UAW demand for a 32 hour workweek. At a 40-hour workweek, pay would be $282,880. Sorry guys, that will never fly.”