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The looming freight rail crisis could be the final nail in Nancy Pelosi’s political coffin.
With prices for gas and groceries on the rise, and no end in sight for the freight rail backlog, Americans are already feeling the pinch. And if things don’t improve soon, it could spell disaster for Democrats in the midterm elections.
Pelosi is banking on the fact that the economy will improve in the coming months, and that voters will give her credit for the passage of the stimulus bill. But if prices continue to rise and freight rail service doesn’t improve, it could be a recipe for disaster.
The freight rail backlog has already caused billions of dollars in economic losses, and it’s only getting worse. If Nancy Pelosi can’t find a way to fix the problem, she could be facing a huge political setback come November.
Only time will tell if Nancy Pelosi can weather the storm. But if the freight rail crisis isn’t resolved soon, it could be the straw that breaks the camel’s back. And that could mean disaster for Democrats in the midterm elections.
A contract dispute between 115,000 rail workers and their employers has left the system teetering on the edge of paralysis. Negotiations have dragged on for nearly two years, during which time rail workers have not had a raise.
The Railway Labor Act requires federal government mediators to prevent railroad work stoppages, but in this case they have been unsuccessful. If the rail workers go on strike, it could cause havoc for businesses and consumers across the country.
Pelosi is already facing a tough reelection battle, and a freight rail crisis could be the final nail in her political coffin. If the rail workers strike, it could cause widespread supply chain disruptions and make it impossible for Pelosi to deliver on her promises to constituents.
If a new contract isn’t reached between the unions and management by September 15, rail workers can strike, which Rick Paterson of Loop Capital Markets referred to as “economic WMD.”
According to Paterson, if there is a prolonged strike, the aftermath would be significantly worse than delays due to the pandemic because it would cause a fundamental component of many supply chains to lose its labor force immediately.
This could have a devastating impact on the economy and throw the midterm elections into chaos. The Democrats are clinging to power by a thin margin, and a major supply chain disruption could swing the vote in favor of the Republicans.
According to Wired: “For that reason, Congress would likely intervene to delay or quickly end a strike, as it did during the last railroad strike in 1991. But lawmakers may not have much time: The deadline is just three days after the House of Representatives returns from recess.”
Pelosi and the Democrats need to act fast to avert this crisis. If they can’t reach a deal with the railroads, they need to prepare for the possibility of a strike and the chaos that would ensue. Otherwise, they may be headed for a major defeat in the midterm elections.
