Does Economic Stimulus Help or Hurt the Trucking Industry?
When “sticky” wages, lackluster levels of consumption, or falling labor statistics hang around for more than a few quarters, many economists believe that economic stimulus is needed to help get things moving. Also known as quantitative easing, this fiscal policy sees central banks increasing the money supply in hopes that the new cash they insert into the economy will help stimulate activity and eventually stimulate growth. This policy affects a number of industries, but what can truckers look forward to after new money is pumped into the economy? Will this help improve business or will it have unforeseen side effects?
How Economic Stimulus Can Help Truckers
Sometimes a bit of extra money in a bank’s vault means they can loan out funds more comfortably. This is great for individuals who are looking to start businesses and participate in new economic endeavors. This means that supplies will be needed in order to help them lay the foundation and get things started – and that’s where truck drivers come in. The low interest rates created artificially by this monetary policy can also lead many entrepreneurs to assume that individuals are saving more rather than consuming. While this may lead to an influx in supply orders as businesses struggle to restock after miscalculating how many shipments they will need, it can also have adverse side effects in the long run.
How Economic Stimulus Can Hurt Truckers
The artificial boom created by newly printed money can seem enjoyable at first, especially for the truckers who get extra work by supplying the goods that customers and businesses want. But after the initial boom occurs, a nasty side effect often manifests itself. The increase in currency is often never accompanied by an equal increase in newly produced goods and services. This means that there is more currency for the existing goods and services to be spread over. As more money is required to buy the same goods (also known as currency inflation), businesses are forced to cut costs. This can be damaging for a trucker’s income, as they may be called for fewer shipments and get less business during this down time.
The Final Verdict – It Depends on Many Factors
If a trucker is reliable enough, they will be called for business even in the down season that usually occurs a couple of years after new money is printed. And in the time being, truckers can enjoy a new influx of business from individuals and companies who are looking to take advantage of low interest rates and increase the amount of goods they buy.