GM to cut US jobs

The GM job cut announcement was the biggest in the United States since Kmart unveiled plans to cut 37,000 jobs in January 2003, according to John Challenger of outplacement firm Challenger, Gray and Christmas Inc.

"This may not be the last major job cut announcement we see this year as other companies, including other American automakers, struggle to make a profit amid escalating health-care costs, not to mention the cost of providing ongoing health benefits to growing ranks of retirees," Challenger said in a statement.

GM expects to spend $5.6 billion on employee and retiree health care this year, and cited that burden when it recently withdrew its earnings guidance for 2005.

   This makes me think about why we as a nation are not persuing some type of universal health care solution. Would it not make our workers more attractive if companies didn't have to pay all of their health care costs? I think many companies are just greedy, but when they can pay someone in another country a fraction of what they do here, what is their motivation for keeping the jobs in the US? I know, I know - higher taxes for universal health care. But which is worse? Higher taxes now, or no jobs later?
(source: GM to slash 25,000 jobs)