Streetwise Professor

October 3, 2024

“Never Go Full Retard”–A Lesson Our Politicians Have Never Learned

Filed under: Economics,Politics — cpirrong @ 4:13 pm

The International Longshoreman’s Union has gone on strike at East Coast ports, from Maine to the Rio Grande. The Biden Administration supports the strike. Harris supports the strike. Trump supports the strike.

These people have apparently forgotten a crucial lesson:

Why is supporting the ILA here full retard?

Presumably they are falling over themselves to support the strike in order to curry favor with organized labor. Yes, despite its radically diminished size (as compared to the 50s and 60s) it could be a swing constituency in 2024’s election. But, this strike will screw far more union members than it will help.

There are 47,000 ILA members on strike. But far more union members–and wage workers who are not unionized–will be hurt.

Consider, for example, the Teamsters. No ships unloading, no need for trucks–and truckers–to haul the cargo to market. Ditto railway workers. And consider factory workers impacted by a cutoff of imported parts and/or by an inability of their employers to ship out what the workers produce.

The strike will reduce the derived demand for every good and input in the US–including notably the derived demand for labor of every skill level and union status.

This of course is not to mention the serious inconveniences–and in some cases real hardships–that tens of millions of Americans will suffer due to the supply change disruption caused by the strike. A disruption, I might add, that will outlast the strike itself. (Panic buying has already led to empty shelves for many staples).

In sum, the beneficiaries of this strike are vastly outnumbered by the victims, and whatever monetary gains the strikers extract, the monetary costs inflicted on others–including other union members–will vastly outstrip these gains.

Not to mention that the ILA exemplifies the worst of organized labor, and its President, Harold Daggett, personifies it. This guy is a first ballot unanimous selection for the Asshole Hall of Fame, and if he played the corrupt union boss/thug in a movie, it would be so over the top you wouldn’t believe it.

So yeah. Full retard to support this strike.

This action is just what the national emergency provisions of the Taft-Hartley Act (Section 206 of the Act, codified at 29 U.S.C. § 176) were designed for: to deal with a strike affecting “trade, commerce, transportation, transmission, or communication” that “imperil[s] the national health or safety.” ILA strikes resulted in the last two uses of this provision–by Nixon in 1971 and Bush in 2002. By going over some procedural hurdles, the President can order the workers back for an 80 day period during which they must negotiate. It should be invoked here as well.

I guarantee that invoking this measure would result in widespread popular support, just as Reagan’s actions against the air traffic controllers in 1981 did. But Biden and Harris are going full retard instead.

Trump seldom misses an opportunity to miss an opportunity, and here is an example. He could just say, as he has on many issues: “This wouldn’t have happened if I were President. I would have done the deal months ago.” He can support ordering the ILA back to work by saying he wants to protect other union workers and the American people. He can paint Daggett as the bad guy.

All low hanging fruit. But no.

Harris is obviously scared to death of appearing anti-union, although as I’ve just pointed out she could easily show that intervention would be pro-union and pro-worker. But well, we know that girl ain’t right.

Biden’s inaction–or more accurately, his deciders’ inaction–could be seen as just falling into line behind Harris. But is it?

Maybe ironically Joe is the only non-retard here. This could be part of his Sampson strategy to bring down the pillars on all those he believes shafted him. That would definitely include Harris and the Democratic establishment. But it could also include the American people who hold him in ridicule and contempt. That would be evil, perhaps–but not dumb.

Regardless, idiotic political calculations are going to inflict massive pain on ordinary Americans.

7 Comments »

  1. Strike ended today. Harris team must have put their fingers in the air and realized it wasn’t a good idea.

    Comment by Jeff Carter (@pointsnfigures1) — October 3, 2024 @ 9:08 pm

  2. Why only east coast ports? China unaffected, Europe screwed.

    Comment by philip — October 4, 2024 @ 1:48 am

  3. Saw this on LinkedIn. Can’t like it there as it was real world consequences. So liking the point here too.

    There is no long term benefit the politicians can’t squander for the perception they’ll gain a few votes.

    Just because the other parts of the economy suffer doesn’t magic more money up for ports to pay union workers more money.

    Comment by Andrew again — October 4, 2024 @ 2:23 am

  4. @philip. The East Coast contract was up for renewal. West Coast contract re-upped in 2022 if I recll correctly.

    Comment by cpirrong — October 4, 2024 @ 3:03 pm

  5. @Andrew again. Oh I know many of my posts are NSFW. But that’s exactly why I write them and write them the way I do.

    Thanks for taking the effort to reach out and like here.

    And you are right. The incentives politicians face are perverse. Favor the now over the future. Favor the narrow over the general.

    Comment by cpirrong — October 4, 2024 @ 3:09 pm

  6. @Jeff Carter. I’m sure it’s because they read my post and didn’t want to go full retard 😛

    Comment by cpirrong — October 4, 2024 @ 3:11 pm

  7. I couldn’t resist – this story is very enlightening (following up on what you noted above)

    and as you noted in your subsequent post – the strike has “magically” disappeared – or has it?

    https://nypost.com/2024/10/02/business/harold-daggetts-sprawling-nj-mansion-has-bentley-5-car-garage-and-guest-house/

    Comment by elmer — October 8, 2024 @ 8:07 pm

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