Joe Biden and his government are in a celebratory mood, claiming that the economy is booming and the numbers are up. However, he is conveniently shying away from mentioning that other things that are going up at an unprecedented pace are inflation and consumer goods prices. And while these developments are taking place, one cannot deny the impact of the Biden administration’s EV and green push.
Many products’ costs are increasing at any stage of development. Oil, grain and other commodity prices have risen dramatically this year. Trucking companies are paying more to transport such goods to factories and building sites because drivers are in short supply. As a result, food and consumer goods such as foil wraps and disposable cups are becoming more expensive. As the trucking industry, which already was vulnerable, has been further hit by the green and Electronic Vehicle push of the Biden administration, the supply chains have been hit throughout the USA.
This is what TFI had earlier predicted might happen, given the abrupt nature of the push and the fact that many people and a large chunk of businesses are not ready to replace their normalised living style in an instant. Now, as per the Wall Street Journal, price tags on consumer goods from processed meat to dishwashing products have risen by double-digit percentages from a year ago, according to NielsenIQ. Whirlpool Corp. freezers and dishwashers and Scotts Miracle-Gro Co. lawn and garden products are also getting costlier, the companies say. Some consumers are feeling stretched.
The rising rates of unemployment in these states was the reason that made Trucking a viable job option. However, it has also suffered a lot and the money it pays has not kept up with the inflation and cost of living for the truck drivers. A Business Insider analysis earlier showed that median wages for truck drivers have decreased 21% on average since 1980. In some areas, they’ve declined as much as 50%.
A few drivers told The Washington Post that they earn $100,000, but many said their annual pay is less than $50,000 (meanwhile, government statistics say median pay for the industry is $42,000). As for the bonuses, driver Daniel Gollnick said they are a “complete joke” because of all the strings attached.
For the trucking industry, the green energy movement has already begun to cause concerns. Also during Trump’s presidency, in July of last year, 15 states and the District of Columbia announced a joint memorandum of understanding (MOU) to implement action plans to ensure that all new medium and heavy-duty vehicle sales are zero-emission by 2050, with a 30-per cent interim goal of zero-emission sales by 2030. California has also passed laws mandating that all trucks and vans sold in the state be zero-emission by 2045.
Kellogg Co., the maker of Frosted Flakes, Cheez-Its and Pringles, said Thursday that higher costs for ingredients, labour and shipping are pushing it and other food makers to raise prices. “We haven’t seen this type of inflation in many, many years,” Chief Executive Officer Steve Cahillane said.
Federal Reserve Chairman Jerome Powell said on April 28 that inflationary pressures resulting from supply-chain problems would likely be temporary and would not prompt the central bank to change policies aimed to keep borrowing costs down. However, given the administration is literally killing the trucking industry, it is hard to accept that it will be a short term problem. And on the contrary, if the Biden administration keeps pushing idealistic and non-implementable ideas, then these problems are only going to exacerbate.