America faces supply-chain disruption and shortages. Here’s why

The Guardian ^ | October 1, 2021 | Matt Stoller

[BlackAdderess]

There are multiple arguments about why the problem is as bad as it is. Everyone agrees that the Covid pandemic and chaotic changes in consumption habits have caused inevitable short-term price hikes and shortages. As people go on vacation less and do outdoor sports more, the price of, say, airline tickets should drop, and the price of bicycles will go up. But some point to government spending and money printing at the Fed as worsening the problem, while others suggest it is temporary and will resolve on its own.

Both arguments have merit. But what we’re experiencing is also the net result of decades of policy choices starting in the 1970s that emphasized consumer sovereignty over citizenship.

[BlackAdderess]

I like his summation that we need to turn away from the esoteric moneymen and back to the people who make things here.

[PIF]

America faces supply-chain disruption and shortages. Here’s why

—
US Longshoremen Unions.

[BlackAdderess]

You wouldn’t have to deal with them if you made things here

[Texas Eagle]

But what we’re experiencing is also the net result of decades of policy choices starting in the 1970s that emphasized consumer sovereignty over citizenship.

Consumer sovereignty over citizenship? (sniff), (sniff). Smells like bull squat.

[Leaning Right]

The author makes some good points. But he also calls for more regulation, and more government control. That sort of thing usually makes things worse.

[BlackAdderess]

Or rather sourced them here

[Liz]

Amen.

[gloryblaze]

... Consumer sovereignty over citizenship? (sniff), (sniff). Smells like bull squat.

Actually, he means cheap consumer prices vs country first, so it's no so "bull."

And he knocks Thomas Friedman, so he's got some smarts.

[BlackAdderess]

The argument for standardization is a strong one though. This nonsense of making customers buy your entire setup in order to use one part, locking them in, needs to go.

[Steely Tom]

Those ships are waiting off shore for a very simple reason: inflation. They’re expecting a big price pop in the next few months, why deliver now.

The “supply-chain disruption” will vanish as soon as prices go up. Duh.

[PIF]

Or rather sourced them here

—
All that is true, but saying so mitigates against focusing on the real world problem of longshoreman/dock worker unions. We are not going to be able to produce everything we need here in the short or long term, but we can bring pressure on the unions to work 24.7 now.

[Perseverando]

I posted this on another supply chain/shipping thread this morning:

Ran across this the other day. The guy sounds very well informed:

The Government Has a Plan to Clear the Ports...WE ARE DOOMED | What’s Going on With Shipping?
https://www.youtube.com/watch?v=BBFCpHihE5I

[BlackAdderess]

I don’t think so. I think we need to yank back our supply chains and make more things domestically because China has and will continue to let us down. Besides, which, we should be keeping the money and jobs in the country rather than printing more food stamps.

[Texas Eagle]

Actually, he actually means Laissez Faire/Freedom over Collectivism/Communism. Actually.

[BlackAdderess]

It seems rather amazing that we got to the point we were, with no choice but to buy everything at the store from China, with the dock worker rules as they were and are.

[TexasFreeper2009]

so... liberals break everything... and the only way to fix it is to go back to 1970’s regulation?

BAHAHAHAHA

[BlackAdderess]

Trump ran as a populist, not as a globalist.

[BlackAdderess]

At the moment, I’m thinking that the idea of standardizing chargers (which Apple is fighting) sounds like a good one.

[semimojo]

Those ships are waiting off shore for a very simple reason: inflation. They’re expecting a big price pop in the next few months, why deliver now.

The only problem with that theory is the people who own the ships don't own the goods on them. The ship owners want to unload ASAP and carry the next load.

[Alberta's Child]

There are a number of good points in the original article and on this thread. Personally, I don't think the issue of domestic vs. foreign manufacturing has any relevance to this particular issue of supply chain disruption and unreliability. We'd likely be facing the same problem -- and maybe even a worse one -- if we produced 100% of the things we purchased here in the U.S.

One of the data sources I use periodically for work is a trucking industry database that posts weekly and monthly reports on activity in the industry. They use one of the largest online resources for trucking brokerage services as their primary indicator of business activity in the trucking industry.

Before COVID, this brokerage clearinghouse reported about 400,000 transactions per day.

For the week ending last Friday, they reported four days of more than 1 million transactions per day -- peaking at nearly 1.1 million.

Those numbers are staggering.

I'm not sure what's driving this, but if my behavior is any indication then I'll suggest this is what's happening: Many Americans are buying as many durable goods as possible right now while they have the money on hand -- because they're planning to reduce their consumption dramatically in the coming months and years.