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> Effectively, we are seeing what happens when people stop working There are a huge number of inputs going into supply chain breakdowns, and I find all of thes
by danShumway 5y ago
> Effectively, we are seeing what happens when people stop working
There are a huge number of inputs going into supply chain breakdowns, and I find all of these takes to be wildly oversimplistic.
Taking a look at even just one aspect, the chip shortage: what you're seeing is a combination of underestimated demand (manufacturers assumed demand would decrease during Covid), bottlenecks in production, factory shutdowns, inflexible scheduling and sourcing, transportation difficulty, increasing demand from both companies/individuals who have shifted to remote and from cryptocurrency attention, etc...
And all of these shortages affect each other too, increasing and redirecting other goods and services, which can form complicated feedback loops. Chip shortages make transportation harder, which makes it harder to manufacture chips.
Employment is certainly a factor, but it's also certainly not the only factor. We are seeing stress fractures in a global system right now. There is no one cause (other than I guess the existence of Covid in general), and there is no single, one policy that anyone, Progressive or Conservative, can pass to fix the problem.
Anyone (Progressive or Conservative) who is trying to sell you the current shortage as simple proof of their ideology is not doing a good job of looking at the issue from a holistic perspective.
- imtringued 5y agoI honestly don't get why companies cut orders. Just keep producing. If you have too much inventory then you get to reduce production whenever it is convenient. If you cut production beforehand you just get screwed.
- adwn 5y agoBecause those orders have to be paid for. When the bill is due, what good is a warehouse full of finished products nobody's buying?