The biggest problem with the economy must be the supply chain issues that riddle the business climate. Industries ranging from semiconductors to construction materials have had many issues with their supply chains due to the rapid economic recovery and increase in demand, and it’s having a ripple effect on the economy. On Wednesday, the CPI rose by 0.3 percent in August, with an uptick in inflation numbers as prices are rising. The key reason behind this is the supply chain as supply hasn’t been able to keep up with demand. President Biden is looking to fix this to keep his political agenda on a smoother track, and he looked over to the other side of the country for a first step.
On Wednesday, the White House announced that they made an agreement with the Port of Los Angeles to operate around the clock, or 24/7, for the time being. The Port of Los Angeles, along with Long Beach, receives and moves a quarter of US imports as China is close to the West Coast, so this makes for a major development. More importantly, the extra hours have been approved by the union that represents dock workers, so labor rights aren’t being violated here. The hope is that goods can move through the docks quicker, which would make it more available for consumers and decrease prices. Companies have also helped, with their commitments allowing nearly 3,500 additional containers through the dock every day. Some dock officials are disliking the decision, saying that terminals are often unutilized when they are operating around the clock. With how it’s looking, though, these docks will be utilized as much as they can because this is a problem we can’t avoid. What do you think about this decision?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.