The Quantum Video
This video went viral during the recent DC Truckers Mayday Rally. It has been seen over 36,000 times in the United States. It has also been viewed globally.
We assert the “Quantum” discussion and the current DC Truckers’ Mayday protest on-going along Constitution Ave is a GIG ECONOMY issue. Call it what you will … 1099s, California AB5, a reordering of American Priorities … Politicians, are you listening?
QUANTUM – 1.00 (1989) = 2.08 (2020) SOURCE: According to the Bureau of Labor Statistics consumer price index, today’s prices in 2020 are 108.16% higher than average prices since 1989. The U.S. dollar experienced an average inflation rate of 2.39% per year during this period, meaning the real value of a dollar decreased.
In other words, $1 in 1989 is equivalent in purchasing power to about $2.08 in 2020, a difference of $1.08 over 31 years.
Let’s try to narrow that argument. I will use the US DOT 2017 Census Report as my basis.
There are 1,608,168 Active USDOT numbers, give or take ten per cent due to attrition or entry.
There are 818278 active USDOT records which are for hire.
There are approximately 3.5 million professional truck drivers in the United States, according to estimates by the American Trucking Association. On average, approximately 2 drivers per every US DOT registered company. There are 1,456,249 registered with the USDOT as of 2017 Census which are “for hire,” “private fleet,” or both.
The Pareto Principle aka the 80/20 rule. Eighty percent of the nation’s cargo is handled by twenty percent of the carrier actors and vice-versa. The total number of people employed in the industry, including those in positions that do not entail driving, exceeds 8.7 million.
Of the 8.7 million employed in total, using the 80/20 rule, for the sake of argument, 1.75 million are employed by the megas. 6.96 million earn their living as small operations.
Look at the pie. 80 per cent of freight revenues is cut up by 1.75 million people. 20 per cent of the revenues is cut up by 6.96 million people. That ain’t a recipe for success. Furthermore, if those 6.96 million little guys have to feed off of the table scraps of the megas, that revenue, too, is being stepped on before the little guy gets his share. I wouldn’t stay in this business as an owner-operator for all the tea in China.
Overly simplistic, I know. But this is what you get with deregulation and eased entry into the business. The bottom lines of mega-carriers, mega-brokers, equipment financiers, and morticians get fattened while the greater share of this industry’s participants get health issues, broken marriages, bankruptcies, lost property, and death. From the Federal point of view, the lost tax revenue must be astounding.
This is unsustainable. What should Trump tell these people? Remember, these people overwhelmingly are his base. Should they fold up their tents and go work at Walmart? Do they just go away and die? These people, to quote Jimmy Stewart, do most of the living and working and dying here. Is there something wrong with wanting better housing? Good food and healthcare for their spouses and kids? Good schools? Some quality time off? That is what this is
about. The overall playing field in transport leans heavily away from 80 per cent of the people in this business. This must be redressed. This is why I think the Quantum Agreement is a fair place to start.
QUANTUM AGREEMENT – A “FOREVER” AGREEMENT BETWEEN ATSF (BNSF) RAILWAY AND J B HUNT TRANSPORTATION MADE IN 1989. CPI (1989/2020) 1.00 TO 2.08. Terms and Conditions Not Disclosed