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However, transition from the old benefit system to the new one isn't cheap and is stretching the financial reserves of the domestic companies. By 2020, GM, which has the largest number of retired employees, will have transferred some $23 billion to the new Voluntary Employee Benefit Association (VEBA), created by the contract. (That amount includes the $13.5 billion GM has already injected into the trust, plus another $9.5 billion yet to be contributed.) Ford owes $13.6 billion to its VEBA, and Chrysler, which doesn't make its finances public, owes between $6 billion and $9 billion...

Author: /time Magazine | Title: Should Taxpayers Bail Out GM's Retirees? | 11/27/2008 | See Source »

...crunch. Even though manufacturers slashed vodka production 15% because of slumping demand, stores are saddled with some 22 million gallons of unsold spirits--six times their inventory of a year ago, according to an industry group. Meanwhile, alcohol-poisoning fatalities are on the rise, reportedly as drinkers turn to cheap, homemade liquor instead...

Author: /time Magazine | Title: The World | 11/26/2008 | See Source »

...afternoon with her is a long walk through the schizophrenia of the Cuban economy, still caught in the maw of the U.S. blockade and hampered by its own gross inefficiency. At an open-air market behind the capitol, mangoes, okra, guavas and limes are everywhere--and cheap. Good thing too because most Cubans earn from $15 to $25 a month and survive off the ration books that offer them sugar, rice, beans and (only for the elderly) cigars. But to get past subsistence, you need to shop at the air-conditioned hard-currency stores. That's where Damaris goes...

Author: /time Magazine | Title: The Sound of Change: Can Music Save Cuba? | 11/26/2008 | See Source »

Prosperity has its favorite hobbies, its gold-trimmed roadsters and superyachts and the million-dollar platinum fishing lure studded with 100 carats of diamonds. But in an age of austerity, when we seek satisfaction on the cheap, some pursuits are all about value, but not necessarily about money. This is the beauty of the collector's world. When you don't like the look of the economy, you get to make your...

Author: /time Magazine | Title: Barack Obama, and the Rush For Election Souvenirs | 11/26/2008 | See Source »

...Many U.S. doctors and dentists were appalled at the idea of their patients turning to foreign hospitals for care that they considered dangerously cheap. But where many U.S. medical professionals saw great peril, countries like Cuba saw opportunities. Beginning in the late 1980s, the island country started programs to lure foreigners from India, Latin America and Europe for eye surgeries, heart procedures and cosmetic procedures. The Cuban government said it welcomed 2,000 medical tourists in 1990. (See pictures from an X-Ray studio...

Author: /time Magazine | Title: Medical Tourism | 11/25/2008 | See Source »

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