Supply Chain Shows Economy is Recovering?
It’s reason to be optimistic, if you ask Transportation Secretary Pete Buttigieg.
In a CNN interview with Jake Tapper’s “State of the Union”, Pete Buttigieg claims that US President Joe Biden ‘successfully guided the economy’, citing increased wages, increased retail sales, and that the ships docked on the West Coast are full of record amount of goods.
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Transportation Secretary Pete Buttigieg, who has been on leave for months amid a supply chain crisis, claims that the crisis is happening because Biden has “successfully” managed the economy … despite skyrocketing inflation and people leaving the workforce at record rates. pic.twitter.com/w5pABpOV8T
— Jason Rantz on KTTH Radio (@jasonrantz) October 17, 2021
Notably, the Christmas season is coming up, so a demand in purchase is expected. However, the department is only recently reacting to reduce the congestion in the ports in LA.
According to Los Angeles Port Executive Director Gene Seroka, the timeline as to when the port congestion will be solved remains unclear. The port has average 900,000 container units monthly in the past 14 months, the busiest in its 114 years.
Biden addressed reporters last week in a press briefing citing the steps they took to make sure that the port is operating 24/7. Unfortunately, Biden seemed to be misaligned with Buttigieg on this, unaware of the challenges ahead facing the supply chain industry. He fails to cite the long-term problems in the briefing that Buttigieg says needs to be addressed, while refusing to take questions.
Challenges Ahead for Supply Chain
In the CNN interview, Buttigieg notes the guiding presence of Biden to help improve the economy out of the recession, while acknowledging that there are challenges ahead for the supply chain of the US.
Tapper: “We’re seeing major supply chain disruption in the U.S. right now, causing everything from higher prices to longer waits for products,” Tapper said. “Moody’s warns that these supply chain disruptions ‘will get worse before they get better.’ Do Americans need to prepare ourselves for this to get worse before it gets better?”
Buttigieg: “Well, certainly, a lot of the challenges that we have been experiencing this year will continue into next year,” Buttigieg said. “But there are both short-term and long-term steps that we can take to do something about it. Look, part of what’s happening isn’t just the supply side. It’s the demand side. Demand is off the charts. Retail sales are through the roof.”
The Bigger Problem: Inflation
However, inflation is on a record high, and though wages have increased, rising gas prices have offset this growth.
The September jobs report didn’t show encouraging numbers either. Buttigieg fails to acknowledge this, while reiterating that the infrastructure bill needs to get passed as it contains USD 17 Billion for the ports alone.
The allocation for the ports will help, but pumping the economy with the mammoth infrastructure bill will cause further inflation.
Twitter Reactions
US Secretary of Transportation @PeteButtigieg has been on paternity leave since August. This required Pres. Biden’s approval. During a global supply chain crisis, how in the world could #Biden think such a request was acceptable? Incompetent & Clueless
US Secretary of Transportation @PeteButtigieg has been on paternity leave since August. This required Pres. Biden’s approval. During a global supply chain crisis, how in the world could #Biden think such a request was acceptable? Incompetent & Cluelesshttps://t.co/1XbgzVVOet
— Steve Hanke (@steve_hanke) October 17, 2021
.@dagenmcdowell: "Inflation is hurting every American who has to live their lives on a budget. It is making America poor." @RogerMarshallMD provides insight into spending and debt negotiations on Capitol Hill, as well as inflation and taxes.
.@dagenmcdowell: "Inflation is hurting every American who has to live their lives on a budget. It is making America poor."@RogerMarshallMD provides insight into spending and debt negotiations on Capitol Hill, as well as inflation and taxes.@MariaBartiromo @FoxBusiness pic.twitter.com/SEEndIsCWm
— Mornings with Maria (@MorningsMaria) October 13, 2021
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