They attribute the shortage in the United States 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, the population in the United States is dependent on unemployment checks, rising financial markets and increasing 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 were so surprised by the sudden increase in demand once restrictions on social contact were lifted that they didn’t even settle. This is particularly the case because Americans, who in many cases remain confined to their homes due to the pandemic, continue to spend more on products – electronics, furniture, appliances, sporting goods – than on services such as hotels, dining out and movie tickets.. 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.

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Myrtle Frost

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