Joe Biden recently tried to explain the meaning of the word “Bidenomics,” however the word salad our half-cohesive president laid out about his economic philosophy was hard to decipher. Good thing you haven’t got to listen to Sleepy Joe to understand the concept; you’ll be able to just talk to average Americans.
They see Bidenomics as something more sinister – taxes, expenses, regulations restricting business; things that cause sticky inflation. Despite the Fed’s rate hikes, it won’t go away and makes the seemingly good economic performance seem recessionary. Biden is terrible at economics for the easy reason that folks hate the undeniable fact that they’ve to work harder to put food on the table and gas up their cars.
Bidenomics can also be picking winners and losers within the economy – and putting possibly 30,000 average Americans out of labor so as to befriend the president’s union buddies within the International Brotherhood of Teamsters. If you happen to don’t think me, consider the pathetic spectacle surrounding a shipping company called Yellow and its slow fading into oblivion as Sleepy Joe doesn’t want to piss off the union he needs to support because the 2024 election approaches.
The Racers and their left-leaning CEO, Sean O’Brien, are in battle mode. They’re threatening to go to war with UPS, the unionized parcel shipping giant, unless the corporate makes significant concessions over a recent contract. This implies the 340,000 unionized staff who help deliver 20 million units a day could go on strike this month.
Speak about supply chain issues.
![Joe Biden](https://nypost.com/wp-content/uploads/sites/2/2023/07/2023-07-08T001932Z_1618145251_RC2LY1ATCNO8_RTRMADP_3_USA-CHINA-BIDEN-1.jpg?w=1024)
O’Brien is fighting an identical and, for my money, more dangerous fight against Yellow. O’Brien is literally threatening Yellow with extinction by blocking a much-needed restructuring plan that does not eliminate jobs but forces union drivers to do things like trucks. Drivers say this trivial concession will one way or the other destroy the corporate’s union workforce, which seems crazy in the event you don’t keep in mind the broader goals of the union and the White House.
Yellow has been around in a single form or one other since 1924. Its core business is often called Less Than Truckload or LTL which involves transporting many smaller loads to different customers. It’s a distinct segment business value about $60 billion. It’s also very competitive and without upgrading unimaginable to compete.
That is one in every of the essential reasons Yellow is close to bankruptcy. He lost money, rather a lot. The corporate is probably going to be liquidated – tens of hundreds of jobs in smoke – in the approaching weeks unless an agreement is reached with drivers to cut costs and modernize its operations.
Yellow believes he can achieve these savings without layoffs, but needs Drivers to accept the deal. Again, no contract, the corporate is toast. Don’t take the corporate’s word for it; that is what the market says. Amidst the stalemate (Yellow just sued the Teamsters to force them to the table), the stock is trading at what are often called hard levels – 86 cents and certain falling.
Yellow has nearly gone bankrupt several times over time, most recently through the COVID lockdowns when it received help from the Trump administration to stay afloat. Some feel that forcing the union to hand over things just like the pay raises it has extracted in previous clashes is only a cry of the wolf.
![A UPS driver makes a delivery on June 30, 2023 in Miami, Florida.](https://nypost.com/wp-content/uploads/sites/2/2023/07/1505865522.jpg?w=1024)
Proxy War
However the numbers suggest the corporate’s fears of bankruptcy are real. Meanwhile, evidence is mounting that O’Brien is using Yellow as a proxy in his war against a bigger, more lucrative enemy, UPS. If it will possibly prove to UPS that it’s willing to play hard with Yellow — even by killing the corporate — UPS may cave in and agree to union demands for wages and more, industry observers say. A shutdown won’t bankrupt UPS, but the specter of an extended strike from a proven, determined enemy would definitely be damaging to business given the uncertain economy.
People in Yellow also consider that Sleepy Joe & Co. they’re partners within the O’Brien plan. Consider: Because of this of Trump’s bailout, Biden’s Treasury now owns about 30% of the corporate’s stock and owes a whole bunch of thousands and thousands in debt. Yellow employs more unionized truckers than any company apart from UPS, a key voting demonstration for Democrats.
Logically, Sleeping Joe and his men make sense to tell the Teamsters that they need to make some type of deal. But after several failed attempts to facilitate a truce, Yellow says there was radio silence from the White House on the matter.
It is easy to see how the political types around Sleepy Joe are in league with the Drivers, as they each have larger union business to do, crushing a much larger enemy in UPS.
That is all very cynical if true – yellow is not exactly a tiny fry. If it imploded, 30,000 jobs, 22,000 of that are unionized, would evaporate. The corporate tells me these are good work jobs that pay $39.95 an hour plus allowances.
If that happens, you’ll be able to attribute it to Bidenomics – the one Sleepy Joe won’t admit to, stumbling over one in every of his half-coherent telepromptered speeches touting the economy that continues to strangle Mid America.
Representatives from Teamsters and the Treasury didn’t respond to calls for comment.