Rail Strike Averted, Inflation Fueled?

1st nation-wide freight rail strike in 20-yrs was averted in a generous tentative deal with unions yet won’t high cost of wage increases fuel even higher inflation? Don’t the workers need to keep up with today’s 8.3% Bidenflation?

The WSJ notes that President Biden & WH advisers “interceded to broker a deal to avoid transport disruptions that could have snarled supply chains, putting new pressure on prices when inflation has been hovering near four-decade highs.” Yet, the terms agreed to include a 24% wage increase over 5 years. An estimated back-pay bonus of $11,000 is also “in there.” A 14.1% wage increase is triggered upon ratification; workers would then get a 4% raise in July 2023 & 4.5% increase in July 2024, as well as five annual $1,000 lump-sum payments. There are no changes to health insurance copays or deductibles in the new deal.

Fox analyst & former Trump advisor Larry Kudlow put the tentative accord in this perspective: “Now in some conservative circles, it’s always fashionable to rail against union wage increases (no pun intended), but you know, the reality is they’re trying to keep up with inflation … Bidenflation is really at the heart of all this. It’s the root cause of these wage increases. It’s really not the fault of the workforce that in recent years, federal spending has ballooned inflation and the Federal Reserve, until recently, has accommodated it. Unions don’t control congressional purse strings or the nation’s money supply. They might want to, but so far, they don’t.” So, Larry, exactly WHO is going to ultimately pay aka get railroaded (no pun intended) for the latest necessary wage hikes?

Davd Soul