The Stimulus and Trucking
Posted on Feb 21, 2009 - 3:10pm by Wayne Weisser in Economy
What’s in the stimulus bill for trucking? Probably not much. If you support or haul construction stuff to road sites like heavy equipment, k-barriers, bridge supports, etc… You might see more work, but not until 2011 or 2012.
A lot of trucking depends on housing. Moving people to new houses, hauling new stuff and materials for houses. A new “housing stimulus” is supposed to help people in existing homes and isn’t going to do much to get people to buy a new house.
I admit, I haven’t actually read it. You can go to Read The Stimulus.org to read it. From what I’ve heard from both sides, it doesn’t sound like it’s going to do much for trucking.
What if you’re fired up and totally behind this bill and think it’s the shot in the arm that America needs to get moving again? Let’s pretend that it does start working and the economy is moving again. Rates go up, fuel stays low, there aren’t as many trucks/drivers on the road anymore, companies are hiring, things are good? Probably not.
Any rise in demand and tonnage is going to be gradual. Fuel prices will move up with any significant demand increases. Thanks to the severe unemployment there will be tons of new drivers waiting for the fulfillment of their recruiting promises. Used trucks are going to be a dime a dozen and so will drivers.
More good news? Several years ago railways were at capacity and couldn’t keep up with the demand and trucking was taking freight the rails couldn’t keep up with. Since then, rail companies have invested billions in new track, new equipment and increasing capacity. Rail companies are doing a lot better than most trucking companies. There is still a lot of freight that can only go by train and have you seen the commercials on TV about how much better shipping by train is instead of by truck?
Anyone seeing any difference? Anyone actually read it? Maybe getting a government contract is the answer. Think this will work? Immediately or much later?
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It’ll never work.
Nothing in this so-called Stimulus bill that will create any long-lasting jobs. . .except in government. And guess who pays for that? I read an article yesterday by some economist that said to pay for this stimulus package+the one before it and the one after it (yes-there is another one coming), we’d have to raise taxes 57% for thirty years! All the crap in this bill looks like you gave your ATM card to an eight-year-old and told him to knock himself out. It has to be the most irresponsible thing I’ve ever seen government do in my lifetime. It’s pretty bad when even Vladimir Putin is lecturing the US that the course we’ve headed down (no-holds-barred Socialism) is what brought the USSR down.
We probably did need to throw some $$ at something, but this bill is pure liberal porkchops-those that benefit are the groups of dyed-in-the-wool Democratic voters who’ve got perks coming for years. . .at least thru the 2012 election cycle. Small business and the middle-class are really going to suffer-but I guess it’s worth it to force us into a one-party government, huh?