Railroad

There are 135,000 Class 1 railroad workers who earn the highest union wages averaging over $100,000 per year not including benefits. They were threatening to strike not for more money but for improvements in working conditions. They have not had a raise in pay since 2019 and will receive $11,000 up front to make up for that. Higher pay for these people is a good thing but it comes at a bad time, since this bonus will push into the economy another $1.5 billion dollars at a time of inflation. The Fed is raising interest rates to cool inflation and the government is adding cash from the Inflation Reduction Act and the student loan debt cancellation. These actions are working against one another.