Grassroots ‘Truckers to Shut Down America’ Plan: Economic Impact

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Economics and Price Elasticity

The basics of capitalism: the balance between supply and demand. Credit: By Protonk (Own work).

The basics of capitalism: the balance between supply and demand. Image by Protonk.

The overall impact on the overall flow of goods and parallel boycott by consumers, however unlikely that may be, would depend largely upon both the duration and the elasticity of the items in question. According to Investopedia, elasticity is defined as follows: “the degree to which a demand or supply curve reacts to a change in price.”

Elasticity can be calculated by a very simple formula: Elasticity = (% change in quantity/% change in price)

As a holder of a valid CDL myself, (I try to carry a full quiver) I salute my fellow truckers for their patriotic activism against the tyrannical oppression that is steadily encroaching upon the freedoms we used to take for granted. The fight is on; the cowboys are leading the charge.

– See more at: http://freepatriot.org/2013/09/18/watch-truckers-strike-will-block-highways-nothing-moves-three-days/#sthash.gzQGnPLH.dpuf

“My fellow patriots this effort is to support the truckers in a major shut down of America ion a 3 day strike October 11th thru 13th. Obamacare will be in effect and most people will be ready to take action. No commerce on those days stock up on items that you will need. No banking no shopping no money transactions.

It does not matter if a million or 50 roll through DC in this effort. Congress will listen to We the People. Which is remove Obama from office for crimes of treason and misdemeanors. We want Congressional hearing on Benghazi and Seal Team 6. Louis Learner put in jail. No amnesty, remove all Muslims in our government that do not uphold the Constitution. Remove Eric Holder from office for crimes against the people and the Constitution. Last but not least is Fuel prices.”

As a holder of a valid CDL myself, (I try to carry a full quiver) I salute my fellow truckers for their patriotic activism against the tyrannical oppression that is steadily encroaching upon the freedoms we used to take for granted. The fight is on; the cowboys are leading the charge.

– See more at: http://freepatriot.org/2013/09/18/watch-truckers-strike-will-block-highways-nothing-moves-three-days/#sthash.gzQGnPLH.dpuf

As is fundamental in capitalism, any artificial disturbance has the potential to create significant swings in prices, especially if the item in question is elastic — i.e., a relatively minor change in price leading to a larger change in demand.

As an example, coffee is generally considered an elastic commodity, with many users switching to tea if the price became unreasonable. Gasoline, on the other hand, is inelastic, as most consumers have no other choice but to utilize it.

What Could a Successful Three-Day Shut Down Do to The Economy?

It’s very difficult to imagine even a successful three-day grassroots ‘movement’ having an appreciable economic impact, other than angry consumers rallying for or against the cause. The inflationary pressures would likely be short-term and ultimately, virtually all the goods would be eventually consumed.

However, a successful grassroots shut down could (in theory) create price fluctuations until the intersection of supply and demand came back into balance. The resulting inflation could lead to lower consumption for elastic commodities, but would have a lesser (although not necessarily zero) impact on inelastic goods and/or services. Given the potential for reduced consumption, the affected economy could take a small short-term hit — not likely sufficient enough to move the dial, but the organizers’ goals are more likely designed to elicit emotional reactions than taking a tangible bite.

Truckers Ride for the Constitution: Economic Impact

In the end, the grassroots ‘Truckers to Shut Down America’ effort may be gaining a certain amount of traction and has a certain fanciful appeal, but is unlikely to have a significant negative economic impact. The Washington politicians seem to be doing a fine job of that all on their own.

Resources

Brainy Quote. Grassroots Quotes(2013). Accessed September 26, 2013.

Fine Dictionary. Grassroots definition(2013). Accessed September 26, 2013.

Ride for the Constitution. Overpasses for Obama’s Impeachment Teams with Truckers to Shut Down America. (2013). Accessed September 26, 2013.

Dorstewiz, Michael. Poll: Do you support efforts by truckers to ‘shut down America.’ (2013). BizPac Review. Accessed September 26, 2013.

Wells, Rick. Truckers Strike Plans to Shut Down D.C. and Stop Flow for 3 Days. (2013). The Free Patriot. Accessed September 26, 2013.

Investopedia. Economics Basics: Elasticity(2013). Accessed September 26, 2013.

It does not matter if a million or 50 roll through DC in this effort. Congress will listen to We the People. Which is remove Obama from office for crimes of treason and misdemeanors. We want Congressional hearing on Benghazi and Seal Team 6. Louis Learner put in jail. No amnesty, remove all Muslims in our government that do not uphold the Constitution. Remove Eric Holder from office for crimes against the people and the Constitution. Last but not least is Fuel prices.”

As a holder of a valid CDL myself, (I try to carry a full quiver) I salute my fellow truckers for their patriotic activism against the tyrannical oppression that is steadily encroaching upon the freedoms we used to take for granted. The fight is on; the cowboys are leading the charge.

– See more at: http://freepatriot.org/2013/09/18/watch-truckers-strike-will-block-highways-nothing-moves-three-days/#sthash.gzQGnPLH.dpu

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