When economics and politics collide

By the numbers: Between April 6 and 15 — when the rule was in effect — the U.S. lost an estimated $8.97 billion because of the delays at the border, according to an analysis by Texas-based the Perryman Group.


Lost or deferred?

Revenue recognized only 10 days later is really no delay at all.

I used to get into arguments with my completions foreman who insisted in paying overtime to finish the job on a Friday night instead of waiting until Monday.

What were we paying for?

2.5 days on a weekend.

Sure, the revenue flowed for additional time in that month. However, a rounding error over any 3 year period ended up costing us 3x in OT labor costs to pull forward that little blip.

When this policy was amplified across 286 job in any single year it starts to add up. It did. To the tune just over 1% of our total revenue.

Meanwhile, similar assumptions abound about our article above; elastic demand completion covers most of the losses.

Sure makes a great headline, tho.

It depends, if it was auto parts or clothing, deferred is probably the right word. If is was fresh fruits and vegetable that rotted in the trailers, then lost is the right term. If truckers drove hundreds of extra miles to other ports of entry, those increased shipping costs would go into the loss column too.