Are Consumer Cost of Goods About to Rise?

In a recent article by Andrew Ward, the trucking industry was highlighted. Currently, drivers are not being adequately compensated for their work and consequently there is a problem of supply not meeting demand when it comes to new drivers entering the industry. Historically, consumers have had lower prices at firms such as Target, Wal-mart and many thousands of other places due to the fact that industry drivers have had the burden placed on their wages. This could be a real problem if we lose quality drivers that aren't willing to struggle to make ends meet any longer.

Many people in our society do not realize what it takes to get these items into our homes and often times we take that luxury for granted. Drivers are not fortunate enough to enjoy a quality of life that most of us have come to demand. True, they ultimately must make a choice as to whether or not they want to continue doing what they do, but the answers that will rectify this situation will not just be to simply ignore their needs and demands. With supply growing at 1% and demand for new drivers growing at 3% annually, something needs to be done soon in order to remedy this situation. If we were all faced with the choice of not getting goods in a timely fashion or paying drivers what they deserve, it would be an easy choice for many when consumer goods suddenly aren't on the shelves in our favorite department stores.


Bryce Larkin said...

I agree with this article. I have a brother-in-law that drives a truck. These people drive all the time and are not compensated for the time. All that all happen is the demand for good workers will go down and in return, the employers will have to change their incentives to get good employees.

Maudi said...

Trucking is everything is Utah if the Truckers Union decided one day to stop comming to Utah, we would have a state wide emergency.The trucking industry is vital and I agree that we take these people and the jobs they do for granted. It is important that we not bite the hand that feeds us. I agree that their wages should go up and if the price of goods has to go up then it's ok.Better that we pay more for goods than have no goods available.

Dr. Tufte said...

Wages can't go up in this industry because the idea of "independent truckers" leads to a prisoners' dilemna. They will all compete against each other to offer the lowest price. The solution to this is collective bargaining on their part. This can raise their wages at the expense fo consumers. Do we really want that?