Global Supply Chain System and Shortages

The current shortages at the supermarket, stores, and businesses are predicted to continue for many months. Here are some reasons that have caused a chain reaction with shortages and issues with the supply chain system, according to experts: Import tariffs; high demand of products during the covid epidemic last year; Suez Canal blockage, shortage of shipping containers; energy shorta

ges in China; worker's not returning to work; overworked truckers. The global supply chain system is modeled after Toyota's Just-in-time supply chain system. Any hiccups, at any point in the process, will create a glut of ships offshore waiting to be offloaded and reloaded.

The lesson to be learned here is that we need to bring manufacturing back to the US, especially pharmaceuticals. At the very least, we should produce fifty percent of the products, medicine, and medical items we consume, with the other fifty percent placed in other countries. To accomplish this, restrictions and policies that caused manufacturing outsourcing to other countries need to be eliminated. Under the 16th amendment, the current taxation system should be replaced by a national sales tax on new goods and services. This, among other benefits, will allow corporations to repatriate monies parked offshore to be used to bring back manufacturing jobs.

22 views0 comments

Recent Posts

See All