Covid-19 could mark the end of affluence politics in the USA, as the possibility of a global pandemic reveals the inability to make and distribute the things people need
Wow, that was a powerful read. I personally don't think the virus will affect us directly all that much, but this article makes a fantastic point, that with how outsourced our production and...
Wow, that was a powerful read. I personally don't think the virus will affect us directly all that much, but this article makes a fantastic point, that with how outsourced our production and supply chain is, it will still impact us all the same. And I hope the conclusion comes true - that Trump is the end of a long line of stagnation, and this is the start of a new era in American politics.
From the article: Yep, sounds very familiar. We take so much for granted. But I suspect at some point China (and other nations most affected) will have to be more practical about shipping stuff to...
From the article:
Affluence politics is not the politics of being wealthy, though, but rather the politics of not paying attention to what creates wealth in the first place. That is to say, it’s the politics of ignoring our ability to make and distribute the things people need.
Yep, sounds very familiar. We take so much for granted.
But I suspect at some point China (and other nations most affected) will have to be more practical about shipping stuff to get supply chains going again, even if they don't allow a lot of travel? Shipping might be more closely regulated, though, and that will increase costs.
The author talks about it more in his newsletter sent out today (which is where I found out about this article): Sounds like he's also planning to write more about the topic in his newsletter...
Here are some observations based on talking to some supply chain and logistics professionals. They are contradictory, because no one has a complete picture of what’s happening in China.
In some sectors, production is simply not returning. For example, production of kitchenware, an industry that is located primarily in China, has collapsed. The government has pushed factories to reopen, but workers are not returning to work. In terms of logistics and shipping, I’ve heard different indications. One air freight specialist told me that though there are truly large backorders in the U.S. waiting to be flown to China, air freight operators are beginning to dig themselves out. Cathay Pacific, for instance, has cleared its backlog of inventory from Chicago, and that’s the major operator out of Hong Kong. Still, it’s really bad, steamship lines are losing $400 million a week and logistics companies with weak balance sheets are going to go bust. Moreover, because airplanes and shipping containers are used in global routes, from say Shanghai to Chicago to Frankfurt, cutting out the China leg ends up eliminating U.S.-European trade as well. It is, as I’m told, “disruption anything like we’ve experienced in our history.”
Production levels are probably uneven. In some areas, like Wuhan, production is still shut down, while in others capacity might be at 50% or 70%. So depending on what you need and where it’s made, you might be able to get access. Of course, we don’t really have visibility into China, and their data isn’t particularly reliable. Experts I talk to seem to believe that their trend line of lower disease rates is real, but also warn that it could flare up again as people go back to work. It could be like experiencing a big wave crashing on you, only to see another big wave right behind the first. Or not.
Sounds like he's also planning to write more about the topic in his newsletter soon, possibly later this week.
Wow, that was a powerful read. I personally don't think the virus will affect us directly all that much, but this article makes a fantastic point, that with how outsourced our production and supply chain is, it will still impact us all the same. And I hope the conclusion comes true - that Trump is the end of a long line of stagnation, and this is the start of a new era in American politics.
From the article:
Yep, sounds very familiar. We take so much for granted.
But I suspect at some point China (and other nations most affected) will have to be more practical about shipping stuff to get supply chains going again, even if they don't allow a lot of travel? Shipping might be more closely regulated, though, and that will increase costs.
The author talks about it more in his newsletter sent out today (which is where I found out about this article):
Sounds like he's also planning to write more about the topic in his newsletter soon, possibly later this week.