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Biden Policies Are Making Supply Chain Crisis Worse

AMAC Exclusive – By Daniel Roman

Biden walking

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.


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HocasPocas
2 months ago

This administration is being led by China. They are ruining our country.

Karen
2 months ago

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!

Joanne 4 justice
2 months ago
Reply to  Karen

SOCIALIST DEMS WANT TO BE THE ONE AND ONLY PARTY! ISNT IT GLARINGLY
OBVIOUS ??
HOWEVER, THEY ARE THE LEAST QUALIFIED TO LEAD ANYTHING SUCCESSFUL -, OR ANYTHING THAT BENEFITS AMERICANS !!!!!!

James
2 months ago

This needs to be spead to every state in theUnited StaTes an the county’s.

Hal
2 months ago

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..

BwaHa
2 months ago

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!

Hal
2 months ago
Reply to  BwaHa

Yeah, MAGA …. Make America Great Again !! And discard the symbolism appropriate to the DemocRat Party >>> MACE … Make America Communist Eternally.

Hal
2 months ago

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.

johnh
2 months ago

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.

BwaHa
2 months ago
Reply to  johnh

He learned it all from obummer.

IMHO

MAGA2024! TRUMP2024!
FJB! LET’S GO BRANDON!
FBarryO!

Hal
2 months ago

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.

BwaHa
2 months ago
Reply to  Hal

Somehow, for some reason the phrase “trustworthy government official…” just doesn’t ring true to me. More of an oxymoron than anything. IMHO

MAGA2024! TRUMP2024!
FJB! LET’S GO BRANDON!
FBarryO!

Thomas J Veldman
2 months ago

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.

Stephen Lykins
2 months ago

Biden is making EVERYTHING worse!

Hal
2 months ago
Reply to  Stephen Lykins

It is obvious what you post is true. But there is a whole political party know by the misnomer of Democrats that wants things work to provide a trend toward Communism.

BwaHa
2 months ago
Reply to  Stephen Lykins

Yep. Much by design. This abject failure of biden’s as POTUS is not a fluke. It was intended to go this way. IMHO

MAGA2024! TRUMP2024!
FJB! LET’S GO BRANDON!
FBarryO!

GLS
2 months ago

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.

Garye
2 months ago
Reply to  GLS

Ignorance of facts is a democrat staple along with lying!
So which is it?
Poor supply side business decisions would be facts!

BwaHa
2 months ago
Reply to  Garye

Great reply Garye!

MAGA2024! TRUMP2024!
FJB! LET’S GO BRANDON!
FBarryO!

Denise
2 months ago

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.

Hal
2 months ago
Reply to  Denise

2nd Timothy … Scary for sure. And Joe Hidin’ Biden and the present day DemocRat party might represent the scenario described. I pray not.

anna hubert
2 months ago

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

Nick Patriot
2 months ago
Reply to  anna hubert

well said, Denise!

Hal
2 months ago

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???

David
2 months ago

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.

BwaHa
2 months ago
Reply to  David

It’s all about conditioning us to prepare for their abject “control” of us.

MAGA2024! TRUMP2024!
FJB! LET’S GO BRANDON!
FBarryO!

Hal
2 months ago

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.

Backwoods
2 months ago

This is all planned by the global elites, Bumbling Braindead Beijing Biden is just a vessel.

BwaHa
2 months ago
Reply to  Backwoods

Yep. You nailed it!

MAGA2024! TRUMP2024!
FJB! LET’S GO BRANDON!
FBarryO!

Tim Toroian
2 months ago

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?

GKP
2 months ago

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/

Hal
2 months ago

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.

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