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How the port strike could impact Arkansas's economy

News of port strikes on the east coast have sent many Americans into a panic. Here's how the strikes could potentially impact Arkansas' economy.

LITTLE ROCK, Ark. — News of port strikes happening on the east coast have sent many Americans into a panic— causing chaos and worry about whether or not it will impact our economy.

On Tuesday, members of the International Longshoremen's Association decided to follow through on their threats to strike. 

According to Little Rock Port Authority Executive Director Bryan Day, months of negotiating led to the most recent dockworkers strikes in efforts of showing the impact they and other port officials have on the economy.

"They're basically saying they need more money and they want less automation. They want to ensure that the owners of the docks, the owners of the facilities, will not use machines to replace human jobs," said Day.

Due to these strikes, certain ports have been experiencing idle barges in the docks, empty sites and packed grocery stores due to people panic buying in bulk.

As the country learned of the strikes in place, questions quickly began all asking how it will impact the economy when it comes to imported and exported goods.

According to Dr. Jeremy Horpedahl, the Director of UCA Center for Research in Economics, about 10-15% of goods in the United States are imported. This means that we heavily rely on goods produced in another country.

As these goods make their way through ports around the country, the strike could impact our economy by halting the production of goods that we need. It could also increase prices on some things from bananas, wine, meats and even washing machines.

"It depends on how long the strike lasts. If it lasts for a couple of days, maybe up to a week, most American consumers won't notice anything," said Day. "If it lasts for more than a couple weeks, then you're going to see costs go up on certain goods. If it goes on for months, then all of our goods come through New Orleans and it could get bottlenecked down there."

Not only have Arkansans been watching closely, but grocery stores have also been keeping an eye on what's coming next due to the strike. They're hoping to avoid situations like the ones we saw in 2020 where people rushed to the store and bought needed items in bulk.

Executive Director of Arkansas Retailers, Steve Goode, said the current port strike isn't something Arkansans have to worry about as of now.

So if you've found yourself running to the grocery store and buying in bulk, it might not be necessary.

"So don't go panic. Let's not make this a toilet paper of 2020 all over again," Goode said. "And if consumers don't, don't panic and go and bulk buy I think there'll be plenty to go around."

While officials say there's no telling how long the strike will last, they also explained how Americans won't see normalcy until compromises are made. 

"Don't lose any sleep over the strike, but in a week from now, if we're still on strike, you might start thinking a little more strategically about what you buy," Day added.

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