Will UAW Strike?

[lilranch2001]

I do not think you can rule out labor costs being a partial cause to inflation, maybe you cannot pin the total amount of inflation on it, but you cannot say it does not add to inflation!

 

[Hay Dude]

Yeah, because the “Fed” is so amazing…..

 

[Torvy]

The rising wages are a symptom of inflation, not the cause. If inflation wasn’t eating away at real wages these guys wouldn’t be willing to walk off the job for more.

I am fully aware of how inflation works. I used to teach Econ. It is not really and either-or situation. Wage-price inflation is a thing. This particular event was caused by poor policy decisions that we cannot discuss. The wage inflation just exacerbates the problem.

 

[ruffdog]

I am fully aware of how inflation works. I used to teach Econ. It is not really and either-or situation. Wage-price inflation is a thing. This particular event was caused by poor policy decisions that we cannot discuss. The wage inflation just exacerbates the problem.

I think you could say the same for tariffs. They may have not caused it but tariffs add cost to products.

 

[Torvy]

I think you could say the same for tariffs. They may have not caused it but tariffs add cost to products.

Not a big fan of most tariffs. The big difference is that tariffs don't exponentiate. In other words, the tariffs don't go up as inflation goes up (at least not as a %). They also are a single point of inflection. Gas prices, wages, etc. hit multiple times through various stages of production. Unless there is a push to raise tariffs in response to an inflationary cycle, they will not have an appreciable effect on inflation.

Wages go up because of scarcity, one of the main features of economics. The more scarce the skill set (or willingness to do a job) the higher the pay. Whenever that concept is artificially manipulated, the market will respond to return to equilibrium. So, if fast food is forced to pay $20/hr for entry level, the assistant managers and more experienced people in those jobs will get even more. Then the store manager will get more and the regional, etc. Market prices for wages respond as people who have a greater skill set will insist on more pay than a burger flipper. That rolls all of the way through the economy. Prices go up across the board to accommodate those rising wages.

Tariffs will increase prices on specific goods. The market tends to respond much differently. First, people will seek out alternatives. They may completely move away from those products if possible. Since tariffs increase prices only on imported goods, they can spawn domestic production because the margins grow. In other words, most tariffs can be at least partially avoided. Wage inflation affects the entire economy.

 

[Gale Hawkins]

Ford deal offers hourly UAW members $50,000 buyout: Who qualifies

This could be the jackpot for something Union members.

 

[Mtsoxfan]

Yea, the warranty on a Mach E battery is 8 years/100,000 miles. Then what? I have (2) vehicles older than 8 years now. My old F150 would probably be on its 3rd or 4th battery by now if it was an EV. Aftermarket EV battery replacement is going to have to be a thing.

A friend of mine tried to cheap out on batteries for his electric golf cart and got bit. He ended up replacing the replacement batteries. An EV would be that times about 6 or 8 I guess.

I have no idea how long the battery will actually last... but, with that thinking, a battery will only last as long as the warrantee, then the same should apply to the gas engine.
Sounds like fear of the unknown.

 

[shooterdon]

I have no idea how long the battery will actually last... but, with that thinking, a battery will only last as long as the warrantee, then the same should apply to the gas engine.
Sounds like fear of the unknown.

But there is a history of ICE vehicles going over 200k miles. It is not uncommon

How many EV’s have gone 200k miles without a battery replacement?

 

[MossRoad]

Would you work in a fast food joint for $20/hr?

I worked at Dairy Queen for $1.65/hr!

One free sandwich per shift, and all the soft serve you could eat. Taught me to look at the overall benefits package VS just the pay.

(also met my future wife there! )

 

[lilranch2001]

There are jobs I would do for $15 hr, and some jobs I wouldn’t do for $1000 an hour