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America's 'Trucker Shortage' Further Kills An Already Dead Phillips Curve
The Washington Post recently reported on a “trucker shortage” so severe that 87-year-old Bob Blocksom, a former insurance salesman in need of cash, was offered a job.  If he could get a commercial driver’s license, he would start at $50,000.  Such is the market in an industry that the Post reports as having 63,000 open positions.  Blocksom’s desire to stay close to his wife of sixty years ultimately led to him turning down the offer, but his story nevertheless reminds us of the bankrupt nature of the Phillips Curve.

For background, proponents of the faux Curve (basically 99% of the economics profession, and nearly every economist in the Federal Reserve’s employ) argue that economic growth has a downside.  They claim that if growth pushes the rate of unemployment too low, and the rate of factory utilization too high, “inflation” will reveal itself through rising labor and product costs rooted in a lack of labor and capacity supply.

Indeed, while prosperity can most certainly foster shortages of goods, services, and aspects of labor, the near-term lack invariably begets enterprising activity.  Sure enough, in the same Washington Post reporting a “trucker shortage” on A1 was a smaller blurb deeper into the newspaper with the headline “Kroger to test grocery deliveries with driverless cars.” And so it will.  The grocery chain will do as many businesses are doing: invest in the next transportation evolution that will result in goods and services being transported by car and truck sans driver.

Just don’t expect to read any of this in the traditional newspapers.  Staffed by journalists who’ve been ministered to about the alleged downside of prosperity, they’ll continue to report on shortages as evidence of an inflation-igniting “crisis,” as opposed to a certain sign of oncoming economy-enhancing innovation.

Good post, DR. This is for those who think for themselves good food for thought.

It is a fine thing to be honest, but it is also very important to be right. - Winston Churchill

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