America isn't running out of everything just because of a supply-chain crisis.

[Nevilledog]

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Nicholas Carlson
@nichcarlson
The sound you hear everyone going "Oh, now I get it!" after reading @emmacos's latest…

America isn't running out of everything just because of a supply-chain crisis. America is running out of everything because Americans are buying so much stuff.

America isn't running out of everything just because of a supply chain crisis. America is running...
Claims the US is running short on everything miss a key point. Record imports are part of the reason for epic supply chain congestion.
businessinsider.com
8:48 AM · Oct 19, 2021

https://www.businessinsider.com/america-isnt-running-out-of-everything-supply-chain-2021-10

*snip*

To understand the situation, consider the country's inventory to sales ratio. This metric, tracked by the US Census Bureau, compares how much stuff sellers have on hand to how much stuff consumers are buying. The ratio is at a 10-year low, which indicates that we're low on stuff.

But the Port of Los Angeles reported a 30% uptick in incoming cargo in the first nine months of this year. (Important note: Most nonfood goods sold in the US come from abroad.) The Port of Charleston, South Carolina, has been breaking all-time records since March. Prologis, a major industrial real-estate player, is "effectively sold out" of warehouse space.

All of that means that the inventory to sales ratio isn't low because the US is short on stuff. It's low because sales have gone completely nuts.

In the first nine months of 2021, retail sales were up 14.5% over the same period in 2020 — a year in which retail sales jumped 8% over 2019. The NRF expected to end the year with sales up 10.5% to 13.5%. Lots of imports and even more spending have driven the inventory to sales ratio down because businesses imported a lot of stuff, and then Americans bought it.

"Today's retail sales data confirms the power of the consumer to spend, and we expect this to continue," Matthew Shay, NRF's CEO, said in a statement.

*snip*

[SWBTATTReg]

1. Thanks for posting. This is one of the best explanations I've heard about this whole 'crisis', it's

not a lack of workers, it's not a supply chain disruption, it's not a lack of adequate resources, its simply just what this article says, Americans buying too much! How often do we ever hear this excuse, eh? Buying too much! ha ha heh...for an economist to hear this excuse for the first time, it's certainly a revelation and one that I haven't heard in a long time (or really, never heard (vs. the oft-repeated excuse that Americans aren't buying enough, etc.).

[empedocles]

3. Also the ships awaiting harbors, are bad. Corruption, non-payment, flag tricks.

Similiarly, low wage payers in warehouses, etc., now have 'supply problems'.

[jimfields33]

12. They said that on msnbc earlier

Americans have a lot of disposable money right now.

[themaguffin]

2. Yep, I read that grocery store sales are up like 8%.

[Thomas Hurt]

4. Where I am at in central TX, I have yet to see any empty shelves since the beginning of the VID.

[PortTack]

7. Yet CNN posts a story about how Biden is in serious political trouble due to empty shelves

They are getting so they are no better than fux!

[unblock]

8. So far it's mostly a west coast problem (los angeles / Long Beach ports) but it is spreading

[unblock]

5. Gdp rate: q1 up 6.3%. Q2 up 6.7%. An exploding economy is gonna have logistical issues

If a Republican were president, all the media could say would be how awesome the economy was and how the president was doing a fantastic job leading the boom. They'd dismiss any shipping congestion as a quality problem and proof of how great a job the president was doing with the economy.

But it's a democrat, so all we hear about are some supply chain issues coping with the massive growth and how Biden is struggling with his agenda.

Fcking media.

[Binkie The Clown]

6. The other problems is that American doesn't make anything anymore. At least not like it used to. nt

[obamanut2012]

9. I'm in SOFL, and only IKEA still has nothing

And, that started in February 2020.

[Hugh_Lebowski]

10. If the ports are doing record imports and their warehouses are full, but sellers are low on goods

Is that not a type of supply chain problem? I.E. isn't getting the goods from the ships to the sellers (or customers directly) a part of the 'supply chain'? Or does that term specifically only refer to getting parts to the manufacturers?

[GusBob]

14. Yes something doesn't add up here

You cant buy things that are not on the shelves.

The article is a bit misleading. " Everything" is not in short supply, but some things are

[Act_of_Reparation]

15. Oh hush.

Don't go ruining impassioned diatribes with distractions like facts.

[fescuerescue]

17. yea I feel like something is being intentionally left out of the messaging.

[lagomorph777]

11. Odd that our right-wing media has found a way to portray a massive booming economy

as a disaster. Geeeee, I wonder why?

[GusBob]

13. Anecdotal but

The spice aisle at our local IGA, is bare bones for months now. Am I led to believe that we are buying too many spices?

Cuz' the manager tells me they are not being delivered. Seems to me you cant over buy what's not on the shelves.

And good luck finding shotgun shells, even when they are available you can only purchase 2 boxes

[panader0]

16. I guess I'm lucky. No apparent shortages of anything around here (a small town in SE Az).

Prices have gone up somewhat.
My step-son in the Coast Guard in California, said that the oil leak there was caused by one
of the waiting to be unloaded cargo ships' anchors dragging the bottom and snagging the pipeline.