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Source: Operation Disclosure Official | By David Lifschultz, Contributing Writer
Submitted on August 1, 2023
THE ILL CONCEIVED US TRUCKING AND AIRLINE DEREGULATION AND THE DECLINE OF THE US AS AN INDUSTRIAL POWER
Compliments of the Lifschultz Organization, Founded in 1899
This very brief essay will demonstrate that the lower classes of the United States have been ruined by industrial polices that target the poor of the nation. They have become to the Democrats the basket of deplorables to use the expression of Hilary Clinton. King Solomon says in Proverbs 11 twice that it is the duty of the King to take care of the poor. The main responsibility of the US leader is to protect in the United States the factory worker and the farmer from exploitation, and we quote King Solomon from Proverbs 31:
5 Lest they drink, and forget the law, and pervert the judgment of any of the afflicted.
9 Open thy mouth, judge righteously, and plead the cause of the poor and needy.
First of all, here is a Fortune press release on the subject of Yellow Freight System and Donald Trump. Here we did our duty to launch this case, and we were the only ones, to stop this injustice. All the smaller trucking companies in the Untied States looked to me as their only hope but the US judicial system was worthless.
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The United States regulated trucking and airlines in the 1930s in order to establish a fair system of commerce that treated small companies as fairly as large companies. The Reagan deregulation aided the large companies and destroyed the small ones in the airline industry and the trucking industry so that large accounts received lower than cost rates while the small shippers received higher rates. This helped create the Walmarts who obtained lower transportation rates than the small shippers for the same articles. They also drove the local groceries stores out of business by demanding lower rates from sellers of cereals, fruit, etc. than the small local stores could compete against and lower rates on transportation. This violated the anti-trust laws but there was no enforcement. The large stores did not have economies of scale other than in their purchasing power. In the early days they were below costs but later once all the small competition was destroyed they could raise prices creating monopoly profits. For example, a Walmart paid lower rates for its goods than the small stores and so did they in transportation. Once all small stores were destroyed they could raise rates.
The reason Yellow, which included Roadway after a merger, and Consolidated Freightways, were able to destroy the entire less than truckload competitors was that the Teamster Union gave them a 30% discount on wages on new hires over the smaller companies who were in a state of siege not hiring anyone for three years. However, after a number of years the wages rose to Union scale and then Roadway, Yellow and Consolidated Freightways, or the big three, were in trouble with new companies that started with low wage employees. The big three were doomed. All went bankrupt. But this was not until the system changed to a much less efficient transportation system using three to four terminals instead of two under regulation as we will see for the same reason in the airline industry.
The question then was whether the deregulation of the transportation industries as airlines or surface transportation was successful in saving money by depressing the wage scale and the answer it was not. In the days before concentration of the airlines and truckers the usual transportation went between two points. So if you took an airline flight in most cases it was direct point to point. It was regulated so the number of trips by the airlines were limited so that they would be full. When deregulation took place you had to go through transfer terminals adding the costs to the transportation whether you were going by air or land or order to fill the planes. They called this connecting flights. You could no longer go point to point as they would not have enough passengers to support it to maintain transportation timetables. However going through three places raised the cost of transportation wiping out the savings achieved by crushing the wages of those who were working in the industries. A tenth grader in high school could figure this out. So the upheaval saved nothing. It not only saved nothing but reduced the efficiency of the US domestic transportation system.
Yellow died simply because it could not compete against non-union truckers as they no longer had the 30% new hire discount. It was a slow and painful death by a thousand cuts. The previous owners seeing this had sold out early
As to how Walmart destroyed almost all the small grocery stores in the US it was by monopoly buying power. They forced the suppliers of groceries to sell to them at a discount over the small stores and drove the small stores out of business. This violated the anti-trust laws but there was no enforcement.
If injustice prevailed in the United States, the United States found itself destroyed as an industrial nation by importing the goods that they used to manufacture. This was done by currency rigging allowing the exporter of say Japan to buy over a trillion dollars to hold up the dollar value so that they could destroy their local competitors in the United States by geographic price discrimination. In addition, Japan sold their products at a higher price in Japan and a lower price in the US destroying all the US manufacturers. If GM and Chrysler were not bailed out they would have died from this. This is what is called in high finance dirty floating. This is going on to this day in a massive way.
The Wall Street giants profited from all of this rigging easily knowing who would be the winners in the fixes. This is how the US became ruined as an industrial power while Wall Street prospered. Only Tucker Carlson will cover this. He gives the picture but he does not understand the concept of dirty floats.
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Tucker Investigates: What is destroying rural America?
David Lifschultz
THE LIFSCHULTZ ORGANIZATION
DAVID@LIFSCHULTZORGANIZATION.COM
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