| Yesterday, Yellow, one of America’s oldest and largest trucking companies, announced the cessation of operations. Some 30,000 jobs may be imperiled – two-thirds of which are filled by Teamsters. There are many reasons for the collapse, but for sure Bidenomics helped close operations.
Trucks run diesel and Biden’s war on fossil fuels drove up wholesale diesel prices 166% in Biden’s first year and a half, and the price is still up 35% since his inauguration. Diesel prices are on the rise again.
Meanwhile, the record spending/borrowing binge under Bidenomics has also caused interest rates to spike, thus increasing corporate borrowing costs. The Wall Street Journal reports that Yellow was heavily laden with debt from multiple mergers and acquisitions, and today’s higher rates made it prohibitively expensive to roll over or restructure that debt.
Finally, Yellow was facing a militant Teamsters Union whose workers have been shafted by high-inflation real wage reductions under Biden. Surges in inflation are highly correlated with labor unrest and strike activity. A costly strike seemed inevitable given that Biden worships at the altar of big labor bosses. Yellow couldn’t afford the big payday the Teamsters won last week in the UPS agreement. So now everyone loses. The shareholders, the workers, and the customers who depended on deliveries from reliable trucking companies. But Bidenomics is apparently a success. |
