Many Americans thought things would be getting back on track by now, but instead what we have is an economy plagued by rampant inflation and broken supply chains. For months, industry experts have been alerting about the worsening supply chain crisis but our leaders underestimated the severity of the problem, and now US consumers are about to get absolutely shocked by the shortages they see.
Instead of announcing a resolution, the White House just openly admitted that there will be significant shortages this holiday season and warned that supply chain problems aren’t going to get better anytime soon. Most Americans have never experienced such extensive shortages, and it’s safe to say that the younger generation never even dreamed that they were possible. After all, we’re the richest country on the planet — not only in wealth but also in resources.
However, as problems have been overlooked despite the series of warnings that have been made, the worst is yet to come. And the painful shortages and price increases we have gone through so far were just the beginning. The White House would ordinarily try to spin any negative story to make it positive, but there’s nothing they can say to hide the fact that there are widespread shortages all over the country. And at this point, even the mainstream media is commenting on the government’s lack of action to tackle this crisis.
According to the Daily Mail, White House officials are “warning American shoppers that they won’t be able to get key items like popular kids toys for Christmas due to the ongoing supply chain nightmares that are strangling retail stores”. When the corporate media starts to pay attention to our real issues, we know that things are already getting out of hand. In fact, the report even says that “stores across the country are becoming increasingly barren thanks to a series of bottlenecks in the global supply chain”. And that “White House officials warned that Americans will face higher prices and empty shelves this holiday season”.
Right now, many goods that are manufactured in China, such as toys, appliances, and clothes, are stuck either in Chinese factories or in containers onboard gigantic cargo ships that are waiting for a berth. The unprecedented port congestion has created a nightmare economic scenario where it has become impossible to meet the rising demand even though there’s supply available, which is driving inflation and in turn raising prices for US consumers.
“President Biden did not comment on the issues at length, nor has he offered a solution for them. Earlier this year, he created a task force to tackle the issue, but so far they are yet to present a plan to fix the issues, the report highlighted. Meanwhile, the Federal Reserve predicted an inflation spike of 4.2%, well above its 2% target. American consumers, unused to empty store shelves, may need to be flexible and patient, White House officials said.
“Major food and consumer product manufacturers being short of supply on some items will be a challenge in the grocery industry in the final months of the year,” said Steve Howard, vice president of merchandising at Bristol Farms, a grocery chain in California. He revealed that his suppliers are warning about shortages of foods, glass jars, and packaging containers.
Some food brands have started imposing restrictions, or purchase caps, for certain products on grocery stores and distributors, while other vendors are warning of limited availability and dwindling inventory levels. These purchase limits could be particularly challenging for independent grocers, who have raised concerns in the past year that suppliers prioritize larger competitors over small stores. That’s why at a local level, shortages can be way more severe than at huge supermarkets. However, big retailers are not immune from restrictions and scarcity.
The enormous backlog of containers awaiting berth at the ports of L.A. and Long Beach is causing major headaches for suppliers, shipping companies, and retailers. As a result, the cost of shipping is reaching absurd heights. Nationwide, more than 100,000 containers are waiting to get unpacked. But due to a massive worker shortage, it could take months until the congestion eases. These are such turbulent times, and much more turbulence is on the way. This is already the most dramatic supply chain collapse in modern history, and it’s safe to say that more disruptions are just around the corner.