Union Impact on Key Sectors: Geiger Capital Highlights Automation, Debt, and Education Concerns

A recent social media post from Geiger Capital has drawn attention to the role of modern unions in several critical areas, asserting that they are responsible for the lack of automated ports, rising public service debt, and declining public school performance despite increased spending. The investment firm's tweet, dated October 30, 2025, stated, "> "Modern unions are why America doesn’t have automated ports, why public services are drowning under debt burdens, and why public school reading and math scores get worse every year despite record per-student spending."

The claim regarding automated ports touches upon a long-standing debate between port operators and labor unions. U.S. ports lag significantly in automation compared to international counterparts, largely due to resistance from unions such as the International Longshore and Warehouse Union (ILWU) and the International Longshoremen's Association (ILA). These unions prioritize job security, while port authorities emphasize the need for automation to enhance efficiency and maintain global competitiveness. Recent negotiations, including a March 2025 agreement between the ILA and the United States Maritime Alliance (USMX), have included substantial wage increases and protections against fully automated terminals, underscoring the ongoing tension between technological advancement and workforce concerns.

In the realm of public services, Geiger Capital's tweet suggests a link between unions and increasing debt burdens. A 2024 study published in the Global Finance Journal by Hae Mi Choi and Swasti Gupta-Mukherjee supports this perspective, finding that U.S. states with strong public sector unions tend to incur more municipal debt following fiscal deficit shocks and face higher bond yields. The research indicated that a one standard deviation increase in unionization rate was associated with an approximately 17% rise in municipal debt issuance after a deficit and a 233 basis points higher bond yield, suggesting that unions can limit a state's financial flexibility.

Concerning public education, the tweet highlights declining reading and math scores despite record per-student spending. Research on teacher unions' impact on academic outcomes presents a complex picture. A 2019 study by Andrew Ju noted that school districts with strong teacher unions experienced larger per-pupil spending cuts during the Great Recession but managed to protect teacher salaries and senior teacher employment, leading to increased class sizes. Despite these cuts, the study found no additional negative impact on student academic performance in these unionized districts, implying a potential misallocation of resources. Conversely, a 2025 analysis by the Manhattan Institute suggested that states with collective bargaining laws for educators saw steeper declines in reading and math scores between 2013 and 2024 compared to states without such laws, though it cautioned against assuming direct causation.

Geiger Capital, known for its free-market perspective, frequently offers commentary on economic and political issues, often expressing critical views on union power and its perceived effects on economic efficiency and public services. The firm's statements consistently emphasize the costs associated with union demands and regulations.