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California Drove Truckers Out of Business. Now Store Shelves Are Empty-Democrat regulations are holding the entire economy hostage
Frontpagemagazine ^ | Oct 22, 2021 | Daniel Greenfield

Posted on 10/25/2021 7:21:04 AM PDT by SJackson

Daniel Greenfield, a Shillman Journalism Fellow at the Freedom Center, is an investigative journalist and writer focusing on the radical Left and Islamic terrorism.

After a long cross-country flight, I made it out of LAX and into an Uber. I wasn’t in the mood to talk, but the driver was. And hearing that I was a journalist, he wanted to tell me a story. I’ve heard a lot of stories over the years, but this may have been the most important one I let go.

He hadn’t always been driving an Uber at 11:30 at night. Not all that long ago he used to have his own business with 7 trucks before he was bankrupted by California’s insane regulations.

I listened, but didn’t pay enough attention. The impact of California’s Democrat legislative supermajority on truckers was just another data point alongside what was happening to freelancers of all kinds and a lot of small businesses. Stories like this were everywhere and there was little interest in them even in conservative circles outside the tarnished golden state.

Back then we still lived in a world where you could walk into a thousand stores with fully stocked shelves. People ordered from Amazon and expected its burgeoning last mile delivery service to make products magically appear overnight. Just in time inventory systems were more efficient and any day now products would be delivered by self-driving cars or aerial drones.

2020 and 2021 have given this Big Tech fantasy world and the rest of us a good kicking.

The massive supply chain mess that’s leaving stores empty and orders unfulfilled doesn’t have a single point of failure, but dozens of them. China’s energy shortages, the overhyped predictive powers of Big Data, the fragility of the global economy, fuel costs, and welfare state worker shortages are all players. But California’s truck bans are a key link in the great failure chain.

While I was riding home that night, California trucking companies were going bankrupt at a rapid rate. Few outside the industry were paying attention or understood what that might mean.

2019 was described as a “bloodbath” for the trucking industry with 640 trucking companies across the country filing for bankruptcy in just the first half of the year. Thousands of truck drivers were left unemployed. Many went into the expanding last mile delivery business, some as contractors for Amazon. But California truckers and businesses had their own special woes.

Two years ago, Governor Newsom signed the Democrat supermajority's Assembly Bill 5 into law. While AB5 was billed as a crackdown on Uber and Lyft, forcing the companies to treat l freelance contractors as employees, the gig economy companies pushed Proposition 22 so that they were the only ones exempt from the law. (A Democrat judge has since illegally blocked the approved ballot measure while falsely claiming that it was unconstitutional.)

AB5 however was less about Uber than it was about outlawing freelance employees in order to force them into unions. The union power grab inconvenienced Uber and Lyft, but crushed freelance workers in a variety of fields including journalism. One of the fields was trucking.

Over the summer, the California Trucking Association actually went to the Supreme Court to fight AB5 and allow owners and operators to use independent contractors. The CTA listed 70,000 owner operators. In the years since AB5, Ubers have become scarcer and more expensive, which is what the law was actually designed to do, but the consequences to the trucking industry have been far worse albeit invisible to most people until now. While truckers are still protected from AB5, many in the industry are not willing to bet their future on SCOTUS.

AB5 was not only the assault on the trucking industry by California Democrats who were aggressively trying to unionize the industry and to impose environmental regulations on it.

Last year, the California Air Resources Board issued a press release boasting that it had taken a "bold step to reduce truck pollution". The bold step required switching to electric trucks.

"We are showing the world that we can move goods, grow our economy and finally dump dirty diesel," Jared Blumenfeld, California’s Secretary for Environmental Protection, sneered.

Jared and California certainly showed the world something.

While the ultimate truck ban was scheduled for 2045, an initial phase-in of 5% to 9% begins in 2024. Last year, California's DMV began refusing to register thousands of trucks with an estimated 100,000 trucks under threat. With "green" trucks costing $70,000 more, this was a non-starter for already troubled independent owner-operators and even larger companies.

That was part of the plan.

California Democrats and their environmentalist special interests had set out to crush the state’s ports and trucking industry. Had everything gone as planned, this would have been a slow and gradual process. Costs would have crept up and deliveries would have fallen off without an immediate catastrophic impact. But then the pandemic and its consequences arrived.

Business at California’s ports dropped during the pandemic. The loss of traffic convinced trucking companies and owner operators who were already battered by AB5 and the green truck ban that it was better to just downsize or pull out entirely. And when port activity rebounded, there was a huge hole in the delivery infrastructure that backed up the entire system.

Biden called for ports to operate around the clock, but that’s not going to magically bring back thousands of trucks or truckers. California Democrats still haven’t changed their regulations and without that, there’s no incentive or even legal structure that would allow trucks to operate.

The resulting disaster is likely to accelerate the ongoing shift of shipping from California ports. Democrats imposed their green shakedown not only on truckers, but on shipping. With companies moving to Texas, Houston was already becoming a more appealing alternative. It’s now at capacity as everyone is looking for alternatives to the California economic disaster area.

But much of our imports and exports still depend on the California bottleneck that begins with Communist China and ends in Communist California. The red-to-red pipeline has savaged our economy and wrecked imports and exports. Newsom’s survival and the Dem legislative supermajority which passes more extreme leftist regulations every session means that things will only get worse. A radical party that actively seeks to dismantle the economy is in power in Sacramento and its regulations have the ability to hold our entire economy hostage.

What happens in California unfortunately doesn’t stay there unless it’s waiting on a ship.



TOPICS: Editorial; Government
KEYWORDS: ab5; beltandroad; california; ccp; china; commerce; logistics; ports; shipping; trade; trucks; youshallnotpass
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To: SJackson

California the manual on how to get everything wrong.

The only good thing that came out of California was the law you can make a right turn on a red light.

Woody Allen


21 posted on 10/25/2021 8:23:16 AM PDT by Vaduz (women and children to be impacIQ of chimpsted the most.)
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To: Born to Conserve

Autonomous trucking is already operating. They still need a butt in the seat. Those asses just won’t be paid as well as now.


22 posted on 10/25/2021 8:23:16 AM PDT by griswold3 (When chaos serves the State, the State will encourage chaos)
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To: Tell It Right

No loads destined for CA ports have ever been diverted to Mobile.

Ever.

Different trade flows.


23 posted on 10/25/2021 8:24:04 AM PDT by Mariner (War criminal #18)
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To: Mariner
Maybe no loads already en route to Commifornia have been diverted to Mobile. But there's definitely been cargo traffic that had changes of destination in place before leaving the point of origin.

https://theconservativetreehouse.com/blog/2021/10/16/as-expected-containergeddon-is-getting-worse-bidens-political-solution-to-clear-the-ships-from-los-angeles-ports-only-making-things-worse/


24 posted on 10/25/2021 8:40:07 AM PDT by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: SJackson

Union commies know exactly the outcome of insane legislation - they piss on the country. The ‘Golden State’ stinks...


25 posted on 10/25/2021 8:48:45 AM PDT by GOPJ (Military suicide deaths last year: 580 - by COVID:56 https://www.youtube.com/watch?v=wOC_dcuJO48)
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To: SJackson

btt


26 posted on 10/25/2021 8:50:07 AM PDT by GailA (Constitution vs evil Treasonous political Apparatchiks, Constitutional Conservative.)
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To: Tell It Right

Florida’s bidding for a piece of the action too... California’s too stupid to be trusted with shipping that impacts the country’s economy. They can’t be trusted.


27 posted on 10/25/2021 8:51:11 AM PDT by GOPJ (Military suicide deaths last year: 580 - by COVID:56 https://www.youtube.com/watch?v=wOC_dcuJO48)
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To: DannyTN
Retailers can't get the stuff they have ordered in, so they aren't placing more orders.

I've been there.

Purchase Order 1: Fulfilled. Items are On-Hand; in the warehouses and on the store shelves
Purchase Order 2: Open. Items in transit from the manufacturer.
Purchase Order 3: Not yet written. Quantities on this will not exceed Demand/Forecast minus On-Hand and In-Transit

Repeat as necessary...

28 posted on 10/25/2021 9:08:03 AM PDT by T.B. Yoits
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To: Tell It Right

I don’t know if the Gulf of California can take container ships, but putting a container terminal on the Sonora side of the Gulf, and connecting it with rail lines and highways into Arizona would be a no-brainer


29 posted on 10/25/2021 9:09:48 AM PDT by kaktuskid
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To: GOPJ
Many ports on the eastern U.S. are getting extra traffic.

Don't forget the Panama Canal recently (maybe a decade ago) being redrudged to be deeper for the larger cargo ships. Then it was a race for eastern U.S. ports to see who could drudge their ports first to start bringing them to their port.

The big boy retailers saw the congestion build up at California years ago and started building up a transportation infrastructure as a backup independent of California. Plus there's an issue with some manufacturing exports building up some in the eastern half of the U.S. (might as well drop imports from Asia at a port in the eastern half of the U.S. and pick up exports going to India).

30 posted on 10/25/2021 9:19:51 AM PDT by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: SJackson

bookmark


31 posted on 10/25/2021 9:44:25 AM PDT by GOP Poet (Super cool you can change your tag line EVERYTIME you post!! :D. (Small things make me happy))
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To: Tell It Right
Then it was a race for eastern U.S. ports to see who could drudge their ports first to start bringing them to their port. The big boy retailers saw the congestion build up at California years ago and started building up a transportation infrastructure as a backup independent of California. Plus there's an issue with some manufacturing exports building up some in the eastern half of the U.S. (might as well drop imports from Asia at a port in the eastern half of the U.S. and pick up exports going to India).

The beauty of capitalism is it's not top down - thousands of minds are working out future solutions and adding flexibility while ports like LA's were still 'functioning.'... Florida's Port Tampa Bay is deep water and ready for business - good highways and interstate connections, and close to railroads. Dropping off Asian goods and on to India is a selling point. Thanks for the insights Tell It Right.

32 posted on 10/25/2021 10:02:21 AM PDT by GOPJ (Military suicide deaths last year: 580 - by COVID:56 https://www.youtube.com/watch?v=wOC_dcuJO48)
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To: SJackson

Bookmark


33 posted on 10/25/2021 10:07:04 AM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: Tell It Right
California's stupidity is helping Alabama thrive.

Thats good news...I'm near Huntsville...just up I65 from Mobile. Still cant abide liberal dems.
34 posted on 10/25/2021 10:22:31 AM PDT by know.your.why (If you dont watch the MSM you are uninformed. If you do watch the MSM you are misinformed.)
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To: SJackson

The wall needs to be built around California and let it rot. .


35 posted on 10/25/2021 10:28:05 AM PDT by Lucky2 (I'm maskless and proud )
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To: Mariner

Some RVers prefer pre-2010 units over later models for same reason.


36 posted on 10/25/2021 10:39:06 AM PDT by whistleduck
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To: Taxman

Ping


37 posted on 10/25/2021 12:27:28 PM PDT by Taxman (SAVE AMERICA!)
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To: whistleduck

What’s this Exhaust Fluid I have heard about??


38 posted on 10/25/2021 10:24:55 PM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: bwest; All
To bwest - the guy who thinks it's stupid to fight the dems and when a man responds - his "argument is, "it's stupid"

When the man first responds to bwest's inane arguments, bwest smugly informs him "abuse has been reported"

When the man responds again, letting him know what a Karen he bwest is, and bwest hasn't a cogent argument, he impugns the man's service and claims the man must have been dishonorably discharged as his "argument".

When the man tells bwest how he was honored by men and women of the 3 services that worked for him by implementing traditions from Army, Navy and Air Force into his retirement and suggests that bwest find a set of balls so maybe he isn't so prone to having his juvenile feelings hurt.

bwest responds via a private mail because he knows he's insufficient to the task and is afraid to let the rest see how childish he is - and in the private mail bwest impugns the man's wife

bwest's private mail:

Re: Articles of Impeachment Accusing President Biden of ‘Treason’ Have Been Introduced in the House

From bwest | 10/25/2021 9:28:19 AM PDT new

Find my balls? Your wife found my balls! She told me that she never wants your balls again. Then she corrected herself and said that you HAD no balls!

Loser.

I'm sure bwest will now report me because it's what juvenile cowards do - was I "mean" to the juvenile, pusillanimous mamma's boy - sure - because I believe that tolerance for such is just an abdication of principles and convictions. Little did I know I would expose another child pretending to be a man.

39 posted on 10/26/2021 4:24:24 AM PDT by trebb (Fight like your life and future depends on it - because they do.)
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To: SJackson

The interstate commerce rules prevent this California overreach..

This is a conspiracy between the Pelosi Newsome gang and the leftist Obama Biden gang to take down the country.


40 posted on 10/26/2021 4:46:03 AM PDT by Chickensoup ( Leftists totalitarian fascists are eradicating conservatives)
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