“America’s ports have fallen behind. Not a single one ranks in the top 50 worldwide.
A big reason is that dock unions stop innovation.
This fall, the International Longshoremen’s Association shut down East and Gulf coast ports, striking for a raise and a ban on automation. They got the raise.
Now union president Harold Daggett says longshoremen will strike again in January if they don’t get that ban on automation.
His statement in my new video makes it clear that he knows how badly his strike would damage other Americans.
“Guys who sell cars can’t sell cars, because the cars ain’t coming in off the ships. They get laid off,” says Daggett. “Construction workers get laid off because materials aren’t coming in. The steel’s not coming in. The lumber’s not coming in. They lose their job.”
Obviously, labor leaders aren’t necessarily “pro-worker,” says Mercatus Center economist Liya Palagashvili.
“They’re saying, ‘We don’t care if these other jobs are destroyed as long as we get what we want.'”
Daggett is unusually clueless. He doesn’t understand that a ban on automation will also hurt his members.
As Palagashvili puts it, “They’ll save some jobs today, but they’ll destroy a lot more jobs in the future.”
That’s because today’s shippers have options. Daggett’s union only controls East and Gulf coast ports. Shippers can deliver their products to ports that accept automation.
“We’re going to see less activity in ‘Stone Age’ ports,” says Palagashvili.
“Stone Age?”
“They want to ban automated opening and closing of port doors,” she points out, requiring workers to pull heavy doors themselves.”
…
“”Some port jobs will definitely be lost,” she says, “but that’s not a bad thing. Look at it historically; we had hundreds of thousands of blacksmiths and candlemakers and watchmakers.”
Obviously, those and other jobs were destroyed by new technology. But unemployment didn’t surge. New jobs emerged—jobs people at the time didn’t imagine: programmers, mechanics, electricians, medical technicians.
That’s capitalism’s “creative destruction.” It constantly creates new jobs. That makes most everyone richer.”