AMAC Exclusive – By Daniel Roman
The term “supply chains” has entered the American political lexicon in recent months both as a genuine challenge to the American and global economy, and as a check-all excuse from the Biden Administration and its defenders for why the U.S. economy, which prospered during the Trump years and survived a lockdown, seems to have come to a halt in the post-COVID world. The Biden Administration, which has refused to admit the dangers posed by inflation, even when called out by no less a figure than Bill Clinton’s Treasury Secretary and former Harvard President Larry Summers, has seized on “supply chain problems” to explain the shortages of goods on store shelves, and why what is available seems to cost a whole lot more.
“Supply chain disruption” makes for an excellent excuse, because it simultaneously absolves the Biden Administration from any responsibility for causing the current situation and from any ability to fix it. When Pete Buttigieg, interrupting his paternity leave, told Congress that these disruptions were due to COVID, citing the example of a factory in Vietnam which might have to close in September, causing a shoe shortage in December (Vietnam has had one COVID wave, and no lockdowns), and suggested these disruptions were likely to last as long as COVID exists, he was suggesting the Biden administration could and would do nothing.
Let’s dispense with the theater. Supply chain disruptions are real. The Biden administration did not create them, and the current crisis had its origins in defects in the global economy which predated Biden, COVID, and even Donald Trump. When working at a trading desk for soybeans in 2014, I was witness to how little excess warehouse capacity existed in global ports. A single vehicular crash on a Brazilian highway could cost tens of millions in losses from wasted goods, as there was no storage capacity for excess goods in ports. When delayed traffic arrived, there would be nowhere to store agricultural goods in excess of what could be unloaded, and there would be no choice but to dispose of them. Because it was much harder in these countries to hire local workers and operate local assets as opposed to trading goods remotely and hiring local contractors, it was impossible for international investors who spent vast sums on the products to get warehousing. That would have required local legal teams, local offices, and often bribes.
Oddly, this problem–and it is one of the major sources of rising food prices–is one thing the Biden Administration could fix with an infrastructure investment if they were so inclined. For perhaps 10% of the price tag of Democrats’ bloated reconciliation bill, the United States government could invest heavily in building warehouses not just at American ports but around the world. The United States, as a government, could bypass many of the legal and diplomatic obstacles preventing private businesses from resolving this issue. Given the gap in the market, this would not only improve agricultural supply chains, but it would almost certainly pay for itself. Not only would the United States government likely make back its entire investment within two or three years, but after that point it would be pure profit, which would also provide a strategic reserve. That is the sort of original thinking which would cost far less and deliver far more (while being noninflationary) that the Biden Administration would look at if it was serious about addressing supply chain issues.
If a lack of storage capacity is a major cause of agricultural shortages, it is not by itself the reason no one can purchase PlayStation 5 in stores. As I outlined earlier this year in an article on the threat Chinese ambitions regarding Taiwan pose to the global economy, over the last decade the tech sector has allowed itself to become dependent on a steadily decreasing number of microchip producers until, due to internal developmental errors at Intel, the whole global economy is now effectively dependent on a single Taiwanese manufacturer and its foundries, namely TMSC. As everything from computers to televisions and cars are now dependent on semiconductors, they are now hard to find. While Biden cannot flip a switch to change this overnight, allowing China to threaten Taiwan also means allowing China to openly threaten markets, which already have no idea when companies will receive microchips. A weak foreign policy stance abroad is thus contributing to hoarding and uncertainty at home.
A similar problem has arisen with energy. Biden and his defenders are not entirely wrong when they argue that energy prices have increased at a faster rate than justified by any change in supply. But that ignores the extent to which they themselves have contributed to this. Prices are driven by future expectations, and under Donald Trump, the assumption was the United States government was determined to secure indefinite future supplies, not just to try and react to secure a minimum.
The consequence was price stability. It is all well and good to promote renewable energy sources, but renewables remain uncertain, and that combined with killing certainties such as the Keystone XL Pipeline is a good way to encourage speculators to assume prices will go up rather than down. Furthermore, the entire Biden approach to energy is to block projects private individuals and companies are paying for – pipelines and fracking – in favor of government backed subsidies for renewables, which only further increases inflation across the board, worsening all of these problems. If Biden was serious about fixing these issues, he would look at solving both problems head-on rather than using one as an excuse for why nothing need be done about the other.
But the Biden Administration is no more serious about supply chains than about inflation. And while Biden is doing nothing to help with agriculture, his high spending policies are making things worse across the board. Inflation is not the cause of agricultural shortages, as explained above, or of shortages of other products. But it does make them worse. Having plenty of money but less to buy logically produces two outcomes. First, it means people have less need for money, and hence less need to work, which contributes to the current labor shortage. (If you can’t buy a car, a computer, or the newest video game console, why exactly are you working extra hours?) Second, it means prices for what goods are available go up. Biden, by pumping endless sums of money into the economy, is exacerbating both problems. It is therefore dishonest for Biden to claim that because inflation did not cause either the labor or goods shortage, that inflation has not made both of them worse and his policies have not worsened inflation.
Ironically, the labor shortage is now reinforcing other shortages, because by making work less attractive, Biden has managed to generate a shortage of truck drivers and port workers, worsening the issue of a lack of products to buy with money that prospective workers now no longer need to work to earn more of.
So while the Biden Administration is not making up “supply chain” problems out of thin air, Biden and his team are being disingenuous when they use the concept as an excuse to do nothing about inflation, or suggest that things are beyond their control. Even if supply chain defects predated COVID, Trump, and Biden, Biden’s policies have made them dramatically worse. And inflation has exacerbated the impact of such policies, creating a circular economic malaise that Biden appears to have no interest in dealing with.
Buttigieg throwing his hands up in the air and saying there is nothing he can do if someone in Cambodia has COVID is not leadership. It may not be fair to blame the administration for all the problems in the world. But the administration is taking none of the actions within its power to address the current crisis, and it must be held to account by all Americans regardless of party affiliation for that failure.
Daniel Roman is the pen name of a frequent commentator and lecturer on foreign policy and political affairs, both nationally and internationally. He holds a Ph.D. in International Relations from the London School of Economics.
Lets have a clear understanding of what “supply chain disruptions” really means in our current situation. The primary source of what is generally being described as “supply chain disruptions” centers around the fact that the United States gets on average 75 to 85 percent of all goods consumed in this country from overseas. Whether it be China, Vietnam, Cambodia, Mexico, Canada or elsewhere. The simply fact is we are completely reliant on goods produced in other countries for a majority of what we buy today. Thus any disruption, for potentially any reason, to the regular and orderly flow of such goods has ripple effects all through the American economy.
We simply don’t make much of anything anymore in this country and thus are reliant on the next cargo container ship from overseas or truckload of goods from Mexico or Canada. This was a situation actively promoted by so-called experts, mostly by academics advising our political leaders in both parties for the last 30 years, with the exception of President Trump, with little to no real world experience to anticipate what the flaws in such a strategy might eventually produce. A second year economics major could point out all the potential catastrophic flaws in the supply chain model we have made our selves reliant on. Not only that, but our largest supplier, communist China, is not our friend and has openly stated for years that they intend to replace us atop the economic, diplomatic and military food chain and has acted to make those goals attainable. Is it really the smartest idea in the world to actively continue to fund the country dedicated to our demise and continue to be completely dependent on them?
Now we’re beginning to experience what happens when the delicate supply chain, based on a globally diverse infrastructure, experiences bottlenecks or delays. Ultimately, the current solution is that we have to make more of our goods domestically, even if that means they cost slightly more, because at some point one or more of the foreign countries we are so dependent on may decide it is in their best interests to put us lower on their list of who gets priority shipments or whether we get any shipments at all.
While updating some American infrastructure might help to slightly increase the flow of goods within the country, once they actually arrive here, the so-called bi-partisan infrastructure bill is NOT the right way to proceed. One, it is only about 1/3 devoted to actual infrastructure, with the other 2/3rds consisting on social engineering programs designed to expand the role of the federal government. Two, a lot of the infrastructure spending in the bill would be directed from bureaucrats in Washington, with state and local personnel largely cut out of the decision making process. Guess which Democrat controlled states will benefit the most and which Republican run states will get the crumbs. This bill should NOT be passed by Congress.
Yes, we need infrastructure upgrades in this country, but the current congressional bill isn’t it. We could simply redirect the unused portion of Covid-19 spending that hasn’t been used, about $500 billion, to just real infrastructure spending run by the individual states and that makes far more sense. The impediment to that of course is the Democrats, as it doesn’t give them the $700 billion in social engineering spending and government expansion that they want. For them, the current bi-partisan infrastructure bill is ALL about that part of the bill. The fact they had to toss in some actual infrastructure to get some 19 Senate RINOs to vote for it is incidental. As even with that part of the bill, the Democrats in Washington will be controlling where the money will actually be spent.
The Biden administration needs to be taken down!
This is one of many democratic goals.
What is propping up this BS stock market, up to now ? The “DOW” ( no relation to Tony ) almost hit 36,000 yesterday. With all this Jo(k)e Bye-then “economics” there should be a 15,000 point dump already. With all this inflation, gas prices, food prices, eating away at the middle class. People will be NOT spending money or at least SHOULD not be. I expect the worst to come.
It’s not hard to figure out why, Hidden Joe Biden and the two lame brains that are InCharge of Commerce and Transportation Don’t give a S##T.
It is just like he and his handlers have planned, it is all going pretty much as they have hoped and scheduled for. They can begin to feel their power and importance THEY LOVE IT, IT IS WITHIN GRASP ~ The question is will the Creator God of the Universe allow them this ‘plum’ at this time or will He not until a later date?
There are plenty of places to store goods. They are called warehouses. We have warehouses in every state of the union. The one thing you never get rid of is food. The other is clothing.
Butt Gig is unqualified for his position.. Zero transportation experience ..
Okay, once again and at least consider this – ALL of these crises are BY DESIGN (Clowerd-Piven) – the three America – hating mud people running the show (#obamaricejarret) are steaming under their silks over the chaos. Until you recognize this, you’re as blind as your liberal ‘friends’.
I thought this was common knowledge that Biden’s handlers were intentionally sabotaging the supply chain.
This is exactly what that brain dead idiot Biden and his handlers wants! They want us to be needy and dependent on the guv’ment. It won’t be happening in this household anytime soon, let alone anytime!
MAGA2024! TRUMP2024!
FJB! Let’s Go Brandon!
The Communist Correct term ‘ESG Guidelines’ Actual Translation is: Sit down, ShutUp, and DO WHAT YOU ARE TOLD.
ESG Guidelines is NOT AMERICAN. DON’T DRINK THE KOOL-AID AMERICA!
Everyone in the White House and Congress needs a refresher course in basic Economics 101, as well as, how our government is supposed to function with the 3 separate branches. Legislative Branch (Congress) writes the laws, Executive Branch (President) signs (okays) or vetoes the laws, and the Judicial Branch (Supreme Court) decides if the law is Constitutional. Basic knowledge has been lost through arrogance and pride. The President should not continue as a dictator!
Come on people put it together! You have an oath to uphold to defend and protect the Constitution of the United States!
Honor your commitment when you took office and be true to yourself!
& to ensure they lose 2022.
Mr Roman, shame on you! Don’t you know all this is Trump’s fault? It’s also Covids fault, Bushs fault, Reagan’s fault, but never ever joeys fault or that of socialist party.
Is the supply chain problem or inflation or any problem as important as the Climate Control Problem? The democrats and liberals do not think so. They’ll manage to get what they need while telling the general population to learn to do without.
stupid is as stupid do thank-you commies for voting this man (HEY MAN I HERE)
A simple solution in the short term would be to get rid of the Biden Administrations’ policies.
After reading the above article, the first thought was – Are you seriously expecting us to actually believe such stupidity. When workers are laid off, ships do not get unloaded. When people are being paid hundreds of $$$ to stay home, ships do not get unloaded.
At this point there is no reason not to re-hire or stop mailing people $$$ to stay home. Get them out and working.
All of the constructions workers that were laid-off already have the needed knowledge to operate all the equipment to unload the ships. BUT, OH NO biden WOULD RATHER IGNORE IT AND MAKE EXCUSES …
By all means, choose an at best average mayor of a mid-sized city with ZERO experience to head DoT because his best qualification is that he is GAY! That guarantees excellence!
Let’s face it, If we were not dependent on other countries to supply Produce, and GROW It here, like we used to. There would be an abundance of food right here right now. But Politicians, have done more damage with a PEN, then a whole army with nuclear weapons. Farmers being paid not to grow crops is BS. Trying to make all fruits and vegetables available year-round is ludicrous. We survived for a hell of a long time with Seasonal Fruits and Vegetables, but today’s generation have no idea what Seasonal Produce is because they are spoiled. Now, the country is dependent on other countries for many produce items when there is no reason. I grew up in an area rich with farms growing fresh vegetables such as Broccoli, Cauliflower, Carrots, Beets, Beans, Corn, and Sugar Beets. We had packing sheds to process them. Now that area is growing Grapes, because farmers cannot make any money growing vegetables. This is due to economic influences by our government. I remember in the 60’s and 70’s when we had surpluses of Grain and Corn and we were shipping surplus grain to Russia. If we had surpluses of Grain products back then why, don’t we have them now? Government intervention happened. If the government would stay out of the way of business this country would be much better off right now. Government Regulations now in California are a big part of the reason for the port back-up. EPA Regulations that affect every trucking company in the state of California. I don’t know of too many trucking companies that can afford to replace their fleets because a trucks engine was built before 2011. Replacing trucks at 400k a pop, is pretty pricey. Even to replace the Power plant with a newer engine and adding all the required equipment to make them legal is Pricey. So, don’t believe it when you hear it’s a driver shortage. There are plenty of drivers available but they have to have trucks to drive. Telling Owner Operators, they cannot operate in the ports is a problem too. Maybe Sleepy Joe didn’t cause this but Democrat Governors in this state did. All this business about so called climate change, really give me a break, Climate, changes in cycles over time. Air Pollution in California, really? We have had some of the tightest Pollution Controls in any state in the union since the 60’s. We had smog controls on our vehicles before the rest of the country, and now they say that there is too much pollution. I got news for you. If the States Politicians are that worry about Air Quality, why haven’t they done anything in the last 50 years to control fuels on the forest floor? Why have they not allowed thinning of forests? Why have they not allowed Burnt Dead Trees to be felled and removed? Here’s why Sacramento is more worried about appeasing the Environmentalist’s that are against doing any of these things. So, in the meantime, the forests are overgrown, little or no fuels removal. So, the first time a lightning strike touches down you end up with a MASSIVE WILDFIRE. Like we have been having every year for the last decade. And guess what, those wildfires spew more toxins into the air that we breath than all the cars on the road in this state. The people in this state have paid dearly for years, for required smog controls on their vehicles, special fuel blends that change twice a year, causing a price increase every time. And for what? To have dirtier air now than 20 years ago due to the WILDFIRES plaguing this state. And NO ONE is doing a damned thing to change that. Not to mention PG&E has been paying out the nose due to lawsuits because it has supposedly been determined that the fires are their fault. Maybe just maybe if they were allowed to clear the fuels on the ground near their transmission line, and cut trees near the transmission lines, when they do have a line go down, there may not be as big a chance of a major wild fire.
This numbskull and his totalitarian, tyrannical regime are making EVERYTHING in America worse. Is it any wonder that this dolt’s poll numbers are in the toilet. No “honeymoon” for this idiot. He began destroying the economy, and us along with it, on day numero uno.
LET’S GO BRANDON
Let’s go Brandon!!!!
Everything Joe Hidin’ Biden has done in his service of the Federal Government including his pre-POTUS activity, has been harmful or antagonistic to our system of a Democratic governance. He’s is a liar, stealer, cheater, anti-American idiot. But he represents the DomocRat Party and I do not respect his tenure in government service at any level in his career.
Well, this does not surprise me. BUCK FIDEN now says the increase in gas prices is caused by OTHER countries not pumping enough product!!
Any report of a condom shortage. ??? Kyle L.
Great article. I agree with so many of the comments. When it gets hot in the kitchen the Biden administration always finds an excuse or blame President Trump or someone rather than take responsibility and try to fix the problems. With all that is going down in our Great Country. Butt head takes a break and Biden takes off for Europe-some leadership here. I am in Colorado Springs and I can tell you the price of gas is up$1.50 to $2 more a gallon than it was last year. Not to mention as you all know groceries are up. I know this is affecting our whole country. . Have you seen all the ships sitting out in the Ocean waiting to be unloaded? Where the heck is Butt head and Biden? Both are avoiding their assigned responsibilities. Oh, Biden once again avoided a major problem and took off to Europe. How much is this going to cost us the taxpayers? Biden should be in America fixing the problems not avoiding them. We in the military were taught to adapt and overcome. It is obvious that these governmental officials have no clue on how to do this. We need no excuses, we need leadership and problems solved. And are you kidding did the Pope say Biden was a good Catholic. Did the Pope really say this? Are you kidding, Biden is pro abortion, and a traitor to America. He and his family took money from China-our enemy! He is a compromised traitor. Who the heck voted for him? They should be ashamed for bringing our Great Country down.
This was a smart and well written article, with plenty of suggestions and ways to apply them. The sad truth is, that the present administration would never implement any of these ideas or take any of these actions…..simply because they choose not to….and seek only another crisis on which to build the structure and framework of more fear in the people, and more control in their hands. The only thing this administration can to to help is to do nothing…to keep their hands off, to allow the system, broken as it is to reach it’s own capacity, and quit sticking their noses in the works. Everything they deal with, touch, examine, fondle, speak about or take on….they screw up. And when bad or broken systems get this kind of attention they are made worse. The evidence is right in front of our eyes…….most people see it for what it is and understand the need for good fixes, new ideas, better technology and the like, that could turn some of this around and even prevent problems in the future. But that is not what the administration wants…..they want a mess, a crisis, a burdened and afraid people…..this is still about power and control……it’s still politics…..it’s still the ole “Potomac Two-step.”
Biden and his foolish administration make EVERYTHING worse. That’s what they do!
This is an understatement. Friends owning business, claim it is a nighmare and worst ever seen.
Can it that a lot of VA voters that tend to get propagandized by the DemocRat baloney and the DemocRat bias to Communism are switching away from the Commie hypnosis and voting against the Hillary Clinton lover??? ff so, that is a resoundidng message to the DemocRats that the voting public has caught on to their deceit.
Ever since GENERAL G..WASHINGTON The USA has always been looking for for the dumbest ass in a herd of mules// This ?? has been answered without another debate and the real answer is JOSEPH (DEMENTIA QUEEN) BIDEN who could and would lead the dumb asses right over a cliff/
That cabinet member who the supply chain is up to private business may be female but still a schmuck. There is plenty the government can do or did they not see what Trump did with operation warp speed?
This is all planned by the global elites, Bumbling Braindead Beijing Biden is just a vessel.
If you want the USA citizenry to give financial assistance, Chicom Joe Hidin’ Biden has both feet in the “conspire with China” stirrups to take the hobby horse ride to the Orient.
While this is a very real issue the empty shelfs, high prices, and lack of selection is nothing but a precursor for the coming communist take over of the economy. It’s happened in every nation that the communists ultimately gained power.
Wow.Youngkin is beating Hillary Lover McAuliffe in the VA governors race. Can it possibly the Joe Hidin’ Biden’s influence and performance has finally understood the political hypocrisy of the DemocRat Party and its candidates? Or is it just a matter that the DemocRats didn’t do a good job of rigging that election???
If that was the worst crisis then I’d say we were doing not bad border is beyond crisis and so called educational system there is a mother of all crises that is something to worry about chinese trash not so much
Biden and his “behind the scenes handlers” ARE the deliberate supply chain problem, security problem, destruction problem etc. The bottom line: totally and irrevocably destroy our economy, our stability, our security, our Constitution…George Bush Sr. upon his presidential election some time ago said ON AIR; “we must usher in the new world order.” Yes, I watched this horror. Do your research on just what the New World Order is about and you’ll be stunned. Many, myself included are quite sure that Barack Hussein is pulling the demented Biden’s frayed strings…and Soros, who’s already destroyed 4 nations economically, is pulling Hussein’s strings.
Remember back when Barack Hussein was running for president one of his statements was ;”There comes a time when you’ve made enough money.” Hussein, now a multi-millionaire owning at least 3 multi-million dollar mansions…can we say “O” is bought and paid for and obeying his master?
More and more I also believe completely what Samuel Adams said so long ago: “When a nation forgets it’s God, tyrants soon forge it’s chains.”…Concerning the absolute ugliness, evil, obscenity, nastiness of so many in our country, their sickening life styles…look up 2nd. Timothy 3 in your Bible..it is a chilling blueprint for exactly what’s happening now…and guaranteed it WILL get far worse.
There is no “accident” for what’s happening to our America.
Sorry to be a downer…but there is a much bigger and more frightening picture taking place.
This is a silly opinion piece and not especially worth reading. The problem with warehouse space is real (I assume, since it seems easily verifiable), and has been a problem for decades, but Biden’s policies are to blame? And it was the Republican Presidency and the Republican Senate, with the Democratic House, that passed the pandemic unemployment subsidies that most (if not all) states have ended. I could go on.
Biden is making EVERYTHING worse!
I believe that the United States of America should and must become self sufficient. We are finding out that depending on other countries for everything just doesn’t work. Whenever big government becomes involved the results are usually less than desirable. Let the industrialist do what they know without the interference of politicians who for the most part have no knowledge of real life and industry. Let the people live and do what they do best, run everything themselves. Keep it home without government interference.
Pete Butt_gig comes across to me as a pure politician who will say or do anything that he believes will get him the most votes. He definitely doesn’t come across as a trustworthy government official who will act in the legal and best ways to preserve and protect the Constitution or its people.
President Biden is responsible for the rising cost of energy in United States, as he declared war on fossil fuels the first week in office. Yesterday, in Scotland on world stage he blamed Russia and Opec for shortage of oil and therefore was not honest to entire world. Not Good—-and he has placed climate change as top priority & the polls do not show the American people agreeing with that. He needs to stop his war on fossil fuels in America.
Let me summarize the political situation in our Nation today. We have an incompetent President supported by a Communist leaning political party that is focused on establishing its power and control of this great Nation by any means possible including unConstitutional, illegal, or pure-partisan goals, thereby insuring its permanent governance of the Nation (a clear form of Communism). Wake up Americans before our Constutional Democracy is snuffed out by powers usurped by the DemocRat Party in its present form.
ol’ slow joe is doing what he’s been told to do by his puppeteers. He’s setting our country up for a fall and his global handlers are all about making it happen. Ol’ slow joe’s allegiance(s) don’t include us, our nation. Those allegiances seem to be to his money pits.
MAGA2024! TRUMP2024!
FJB! LET’S GO BRANDON!
FBarryO!
The one character trait Joe Hidin’ Biden has demonstrated his entire adult life in politics is that he is a lying, self-serving, plagiarizing, dishonest, hair sniffing, China doter, clueless DemocRat (I know I left out a few things, but my fingers would tire listing all of them). He continues, however, to be consistent in his thoughts and actions … 100% wrong on everything. But his selection (i.e. rigged election) has been an embarrassing flaw ot our Constitutional governance. But it has pointed to the need to fix the election/voting system which has shown to be unreliable in reflecting the will of the people due to rigging by the Communist faction of our political system. Without an honest, true, and fair voting system, our democratic Constitutional governance system will go the way of corn cob toilet paper..
This needs to be spead to every state in theUnited StaTes an the county’s.
Looking forward to seeing commie Biden (if he lives full term} be tried for treason and ignoring the Constitution. Of course, we won’t forget about his many, many fellow commies. It’s gonna be some party!
This administration is being led by China. They are ruining our country.