More Strikes, Bad Timing
It’s looking likely that thousands of dockworkers at 14 major ports along the East and Gulf coasts are heading for a strike on 1 October - next Tuesday. This one is going to hurt, and likely trigger pandemic-style shortages the longer it lasts. The ports in question - from Maine to Houston account for half the shipping containers goods coming in and out of the country. According the JPMorgan, it could cost the economy, already showing signs of slowing down, about $5bn a day affecting cars, parts and perishables like fruits and vegetables.
It’s a load of bad timing for both President Biden and Vice-President Harris. Under the 1947 Taft-Hartley Act, the president can order workers back on the job - George W. Bush did it when West Coast ports walked out in 2002. That Biden has positioned himself as “pro-Union” isn’t a problem for Biden, but his symbiotic relationship to Harris whose lead in most polls looks close to the margin or error. The Unions won’t like it and neither candidate can afford to irritate that vindictive crew. On the other hand, most voters feeling 20% inflation over the last three years, don’t want to revert to high prices on black market toilet paper.
The White House has said it won’t step-in, but should the thing last more than a week the shortages will be felt and prices might jack-knife before the holidays and election day. Whomever the White House decided to cheese off, the blame is going to drop into Harris’ lap.