The shortage in the United States is attributable to accelerated consumption

The shortage in the United States is attributable to accelerated consumption

Detroit.- Shortages and disruptions in the US supply chain are caused in part by a relatively simple factor: the population continues to consume at an accelerating rate.

Despite the ongoing pandemic, residents in the United States have unemployment checks, surging financial markets and an increase in home prices. This is why many people tend to spend, and a lot. And since it is consumer demand that drives much of the US and global economies, this demand is causing a huge shortage of products.

If you add to this the fact that companies are ordering and stockpiling more products than they need to avoid running out of supplies, it becomes clear that it is a vicious cycle: almost insatiable demand amplifies supply shortages.

This is where the biggest problem lies: suppliers have been so surprised by the sudden increase in demand once restrictions on social contact are lifted that they haven’t even settled. Particularly because Americans, in many cases still confined to their homes by the pandemic, continue to spend more on products — electronics, furniture, appliances, sporting goods — than on services such as hotels, dining out and tickets Cinema.. all this demand for products, in turn, helps accelerate inflation in the United States.

Unless there is an increase in service expenses or something else happens that causes people to stop buying so much, the trend may continue into 2022 or even before 2023, before the global supply chain recovers somewhat naturally.

See also  The famous Doge meme is the most expensive in history after it was sold for 4 million dollars

Izer Hector

"Coffeemaker. Certified Alcoholic. Passionate Foodie. Pop Culture Ninja."

Leave a Reply

Your email address will not be published. Required fields are marked *