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Via SchiffGold.com,

The United Auto Workers went on strike against the Big Three US automakers in Detroit last week. Peter Schiff went on Real America with Dan Ball to talk about the strike and how it might impact the US economy.

Peter put the strike in the context of the current inflationary and high interest rate environment, and talked about how it might impact the broader US economy.

This is the first time the UAW has gone on strike against all three US automakers at the same time. About 12,700 workers are on strike. The UAW is demanding a 40% wage increase through 2027 with a 20% raise immediately. They also want a 32-hour workweek.

Dan Ball called it “a big ask.”

Peter said some of it might just be negotiating tactics – demand the moon and settle for less. But he said they are certainly looking to become less productive, especially with the shorter work week. But a lot of that big raise would do nothing but keep up with price inflation.

Peter said that more than a decade of zero percent interest rates skewed the labor market.

And it’s not interest rates. Other production costs are skyrocketing. Peter specifically noted the rising price of oil and fuel. Oil is up 8% just in September.

Dan pointed out that if the strike goes on, it will ripple through the broader economy. Peter said the strike will end. Auto workers will get increased wages and benefits. And the Big Three automakers will add those increased costs to the price of their vehicles.

The Biden administration has indicated that it might help the US automakers handle the increased costs. Dan pointed out the irony of the government that created inflation taking American tax money to bail out companies hurt by that inflation.

Peter said they’re not even taking our money. They’re just borrowing more money.