As UAW strike nears settlement, let's hope this one demand isn't met

The United Auto Workers (UAW) have reportedly struck agreements with each of the Big Three auto manufacturers, hopefully bringing thousands back to work and restarting U.S. automobile production.

With details still being finalized, it remains to be seen how damaging these agreements will be to the U.S. But if the UAW is happy with the terms, it’s likely that they could have detrimental impacts on the U.S. economy and workforce for generations.

It’s easy to understand why. The UAW has made demands that could damage the competitiveness of U.S. auto manufacturers. They’ve asked for significant wage increases and a shorter work week, making it tough for U.S. manufacturers to compete globally and potentially weakening a core and beloved American industry.

However, it's the UAW's third demand that is most troubling: the elimination of the two-tiered wage system, which would result in everyone in a given role receiving the same compensation, regardless of their experience or time in their position. This demand is fundamentally un-American and would have severe unintended consequences.

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Recently, UPS eliminated their two-tiered wage system. If the UAW secures this concession, the auto industry would be the next domino to fall, putting American industry on the perilous path of self-imposed decline.Negotiators need look no further than Communist Mao Zedong’s China in the 1950s and 1960s to see the disastrous economic effects of this policy. Unsurprisingly, Marxists are advising the UAW leadership and pushing for a similar wage system.

Mao's vision of socialist equality, with uniform wages irrespective of occupation, education or skill level, led to disastrous economic effects and human suffering.

When everyone is paid the same regardless of their performance or skills, the motivation to excel dissipates.

Egalitarian wage policies also resulted in resource misallocation. Wages failed to reflect the actual demand for different types of labor, leading to shortages in some sectors and surpluses in others. Additionally, the rigid wage structure failed to account for varying living costs across regions, distorting