The Shape of Things to Come: Greying

From this comment at GNXP:

I think we have to face reality and realize that GM is not in its current straights because it builds bad cars. In fact the quality of GM cars is really a detraction from GM’s true problems which is an unsustainable pension structure.

At present GM has three pensioners for every active employee. Paying these retirement benefits is whats really killing GM. Also healthcare is something that’s killing GM, GM’s spends more per vehicle on healthcare than it does on steel.

It’s quite a dangerous thing to guarantee resources to people who no longer produce anything of equal or greater worth as those resources.

Something to keep in mind as the US tries to “redistribute wealth” in the months and years to come.

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5 Responses to “The Shape of Things to Come: Greying”

  1. I thought you were going to make a radical green point about photosynthesis, plants vs animals and carnivores. The punchline was kind of a letdown.

  2. it’s dangerous but GM willfully entered those contracts. The market selects against corporations that willfully enter into binding contracts of a financially uncertain nature.

  3. “I thought you were going to make a radical green point about photosynthesis, plants vs animals and carnivores.”

    Isn’t that sort of point so obvious by now that I don’t need to say it?

  4. Less obvious than the point about the government redistributing wealth, which you can find at tons of righty blogs.

  5. I accepted a long time ago that the things that are obvious to me are not obvious to most people, and vice versa.

    Lots of people have pointed out that the greying of populations in the First World is going to be massively problematic. I didn’t feel that particular dead horse needed to be beaten any longer.

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