Interesing article at Popular Mechanics on why things are so bad for General Motors. The money paragraph:
Every car GM makes carries “legacy costs”—the costs of providing healthcare and pensions to scores of retired workers. For every GM worker, there are about 10 dependants, which are defined as retired workers and their families. According to Cole, “When the international car companies came to the U.S., the move stuck the domestics with a very large disadvantage related to legacy costs. And that’s $2000 a car.”
Ten dependents for every one GM worker. Social Security currently has 3.3 workers for every retiree, which is projected to decline to 2.1 workers per retiree by 2040. America’s future may not look as bad as GM, but the consequences for America’s financial failure are much greater.
