The Ripple Effect of Union Strikes: A Case Study of the Micro- and Macroeconomic Effects of the General Motors Strike of 1998

Authors

Korey Harlyn Coon '00, Illinois Wesleyan University

Abstract

The United Auto Workers (UAW) strike at General Motors in the summer of 1998 had a large impact on both the microeconomy and the macroeconomy of the United States. GM’s total sales, profits, and market share all have declined because of the strike. Not only did the strike have an adverse effect on GM’s financial status, but the nation’s total output, sales, price level, consumer spending, trade deficit, and employment were all affected. Many satellite businesses depend on GM for sales, service, products, and supplies. The combination of the losses GM incurred, the losses of satellite businesses, along with other adverse ripple effects accounts for a significant part of the decline in U.S. GDP growth.

Recommended Citation

Coon '00, Korey Harlyn (1999) "The Ripple Effect of Union Strikes: A Case Study of the Micro- and Macroeconomic Effects of the General Motors Strike of 1998," The Park Place Economist: Vol. 7
Available at: https://digitalcommons.iwu.edu/parkplace/vol7/iss1/13