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Politics : View from the Center and Left

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To: TimF who wrote (58598)	4/11/2008 1:44:01 PM
From: Lane3	Read Replies (1) of 542822

"The costs of manufacturing a car no longer include the direct costs of health care insurance for employees." The costs don't go away. More directly, the costs "go away" or are "shifted" but they do so equally for everyone producing in the US so there is no or limited relative advantage. The only benefit I can see is that cars appear to be cheaper than before, a bargain, so people will feel better about buying and be more inclined to buy. That effect lasts only long enough for folks to get used to the new pricing, though. Probably that wouldn't be more than one car cycle. If you tax the companies than the companies pay for it in taxes instead of directly I think it's Clinton's plan that does that. Which would seem to be the worst option for employers. They lose the benefit of offering the perk but still have to pay for it.

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