The trucking market has been in the longest and deepest downturns in history. It started in March 2022 and has put many trucking companies out of business.
The goods economy has been sluggish, but the primary cause has been way too much capacity.
There was an explosion of new companies into the industry during COVID, attracted to good paying rates and fueled by government stimulus/cheap credit.
Unfortunately, the industry overcorrected and way too much capacity was added, causing a collapse in market rates.
To fend off bankruptcy, trucking firms found the only way to survive was to cut costs. The number one expense for truckers is driver labor. It's hard to cut the wages of experienced truck drivers with proper documentation, so a large number of small trucking firms resorted to hiring drivers without work permits.
These workers were able to secure CDLs in the US, without ever passing a CDL test in the U.S. Many states honored CDLs from other foreign countries, without verifying that the driver was experienced and qualified. In other words, they never demonstrated that they could drive an 80,000 lb truck safely. Not only that, but many of the folks couldn't speak or read English.
Trucking became a lifeline for many immigrants. It offers steady work, a decent living, and since most truckers live out of their truck, a place to live. For most immigrants, it is a significant improvement over the abject poverty in their home countries.
These undocumented workers would often work for wages below their American counterparts while tolerating poor working conditions and junky, unsafe equipment.
The DOT officials, the ones that are charged with enforcement, were told to ignore the driver's CDL qualifications and not to inspect for proper work permits. They were also instructed to accommodate drivers who didn't speak English. This happened in 2016.
In other words, a truck driver without proper documentation or work permit, could not be placed out of service, even if the DOT official knew the driver lacked the proper credentials.
This flood of unqualified and undocumented truck drivers created a flood of capacity and has kept trucking rates in the gutter, bankrupting many companies that were in full compliance and had qualified US truck drivers. It has also made our highways far more dangerous, as the fatality rate increase involving heavy-duty trucks demonstrates.
The Trump Administration has issued new guidance to reinforce the labor, CDL, and language capabilities of truck drivers. Anyone who is caught driving a truck without proper documentation or English comprehension will be put out of service and risk being deported.
While I have an enormous amount of empathy for the plight of immigrants, I recognize that this is a major safety and fairness issue for the trucking industry.
I would love to see the trucking industry thrive once again and hope the executive order accomplishes that.
๐จ To Elon Musk and the DOGE team looking at Medicare:
Pharmacist says
- Cancer Medicine Imatinib costs them $7 to buy. They add $10, so you're out the door for $17
- When Medicare pays for this drug, IT COSTS THEM $2,400
- This drug was filled 250,000 times in 1 year costing Medicare $600 million
โIf every one of those scripts was filled at our pharmacy instead of through Medicare, it would've cost $4 million. That means that we are $596 million cheaper than the insurance. That's crazy.โ
โSo why are they paying this much for that medication? Well, insurance companies pay a middleman, the pharmacy benefits manager, and that person decides how much that medication's gonna costโ
- 3 Pharmacy Benefits Managers control over 90% of all prescription pricing in America
- Pharmaceutical companies bought all 3 Pharmacy Benefits Managers
They set their own pricing, Medicare pays ASTRONOMICAL prices and taxpayers pick up the bill. This is a racket.