Shortage in the US attributed to accelerated consumption

Detroit.- The reason for the shortages and disruptions in the supply chain in the United States is partly explained by a relatively simple factor: the population continues to consume at an accelerated rate.

Although the pandemic continues, the population in the United States is counting on unemployment checks, rising financial markets and an increase in home prices. That is why many people tend to spend, and a lot. And because consumer demand drives so much of the US and global economies, that demand is causing major product shortages.

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

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 did not even level out. This is especially so because Americans, who are still in many cases locked in 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 that demand for products, in return, is helping to accelerate inflation in the United States.

Unless there is an increase in service expenses or something else happens that leads people to stop buying so much, the trend could continue well into 2022 or even before 2023, before the global supply chain recovers some normal.

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