The current UAW strike isn’t likely to reshape the national economy, but its effects will still be felt in the future. The formation of this strike started when the UAW decided to do a “limited and targeted stoppage at three locations: a Stellantis plant in Ohio, a General Motors factory in Missouri, and a Ford plant in Michigan”. This stems from the current high inflation and fear of an imminent recession coming to the US Economy. At the current moment only 13,000 out of the 150,000 US workers are currently participating in the strike. This however could be a concern to the economy as a solution has not been solved yet causing worry that more workers will join the strike.
The ways that it could affect the economy if things were to get worse would be the dismantlement of the US top 3 carmakers. Which economist project would cause billions in damage. Luckily, economists don’t believe the strike will go that far as they believe both parties will come up with a solution. How it is affecting the market currently however is that those who are on strikes are receiving a $500 stipend a week making consumption money go down. Economists believe this would continue over a six-month period. Small businesses in the surrounding areas would be devastated.
Sources:
https://www.theatlantic.com/newsletters/archive/2023/09/the-economic-stakes-of-the-uaw-strike/675381/
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