Problems With the Supply Chain Began Before the Pandemic. Here’s What Biden Can Do About It.
By: Veronique de Rugy (Reason)
Politicians, the Federal Reserve, and Fed and administration apologists like to claim that the inflation we face is caused by supply constraints. This claim goes against the facts on the ground. According to the World Trade Organization, even though there was a collapse in trade at the beginning of the pandemic, trade in intermediate goods—critical inputs in finalized products—quickly recovered despite port and shipping bottlenecks. Sure, it increased at a slower rate than before, but trade was still rising.
In addition, data from the main U.S. ports show that after declining at the beginning of the pandemic, ports soon recovered and operated at pre-2020 levels. There were chokepoints, but supply chains were far from “cut off” in the way that President Joe Biden likes to assert.
To the extent that there are real obstructions in supply chains, they started long before the pandemic. For these, there is a lot that the administration and Congress can do…
Featured News
European Music Streaming Firms Rally Against Apple’s Proposed Remedies
May 9, 2024 by
CPI
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI