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General Motors, Ford, and Stellantis in Detroit are facing a potential strike by the United Auto Workers (UAW) union. If an agreement is not reached by 11:59 p.m. on Thursday, Sept. 14, it could result in the largest U.S. strike by active employees in 25 years.
A Cornell study and NPR reporting indicate union strikes are becoming more common. In July, UPS and their union workers narrowly avoided a strike that would have triggered a nationwide shipping crisis, costing the U.S. economy billions of dollars.
Straight Arrow News contributor Peter Zeihan argues that unions are becoming more pivotal in the American economy and politics. He warns that if UAW does go on strike, it could push the U.S. into a recession.
An excerpt from Peter Zeihan’s Sept. 14 “Zeihan on Geopolitics” newsletter:
If your kids need poster boards for an upcoming school project, you may want to visit the supply store before the autoworkers hit the picket lines. With a strike looming, let’s break down the economic and political consequences.
An autoworker strike – even if it’s short – could disrupt the largest manufacturing sector in the US and potentially send us into a recession. If the economic threat wasn’t significant enough, the unions are also gaining political influence and acting more like swing voters as the availability of labor decreases.
These ongoing negotiations and potential strikes are all part of the evolving political and economic American landscape. Whichever political party can gain the union’s favor will reap the benefits of a boost in overall influence.
