Will All Of America Go On Strike?

If you think the supply chain problems, empty shelves in stores and higher inflation are problems now, wait a few weeks; they are likely to get worse. And this isn't a result of hurricanes, the pandemic or other acts of nature. It's all due to political incompetence that starts in the Oval Office.

Here's one prominent reason the supply shortage of goods from fruits and vegetables to gasoline to toys for Christmas will go from a headache to a crisis.

We are now witnessing the end of four decades of labor peace in America. Two prominent companies, Kellogg's and John Deere, face strikes with thousands of workers walking off the job. The United Auto Workers strike against John Deere is the first labor unrest at the large Illinois plant since the mid-1980s. Kellogg's last had a work stoppage in 1972.

We already have nearly 11 million unfilled jobs thanks to super-generous welfare benefits. The shortage of dockworkers, truckers and factory workers is inciting higher inflation due to shortages. Now, if thousands of more workers in critical industries go on strike, havoc could prevail.

The worker shortages only give more leverage to the unions to walk off the job for higher pay and benefits. The John Deere workers balked at a proposed 5% raise -- and not without cause. With inflation running closer to 6%, a 5% raise could mean a loss in real income to the rank-and-file workers.

Here's the vicious cycle we could be looking at in due time. Inflation means higher prices at the stores, which means workers want higher pay, which means companies have higher costs, which means the firms have to raise their prices further. And the process repeats. Six percent inflation could snowball into 8% to 10% inflation by the end of the year. Yikes.

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Will All Of America Go On Strike?

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