Politics

Buttigieg Praises Biden’s Economic Leadership Amid Supply Chain Crisis

[Screenshot/CNN]

Gretchen Clayson Contributor
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Secretary of Transportation Pete Buttigieg appeared on “State of the Union” with Jake Tapper to discuss the “growing supply chain nightmare” facing the Biden Administration as ports, railroads and trucking industries brace for a deepening crisis.

The Transportation Secretary said Sunday that the supply chain issues were likely to get worse before they got better, continuing into next year. Buttigieg said that demand for certain products was also contributing to the supply chain crisis.

“Demand is up, because income is up, because the President has successfully guided this economy out of the teeth of a terrifying recession,” he said.

Consumer prices in September 2021 were 5.4% higher than they were in 2020.

David Blanchflower, Professor of Economics at Dartmouth College, recently pointed to comparable warning signs in 2007 before the start of the recession. “By the Spring of 2007 qualitative data pointed to a recession coming in a few months and this was ignored,” he says in a recent report by Forbes.  “Today we report equivalent evidence for the U.S. showing comparable declines suggesting that the US is entering recession now, at the end of 2021.”

Though Buttigieg argued that unprecedented demand was driving the supply chain issues, ABC News reported that analysts argue that the lingering effects of COVID-19 mitigation strategies essentially reduced the production of goods and services, and the supply-chain shortages now happening are the result of struggles to return to pre-pandemic levels.

“The result of that imbalance between supply and demand eliminated all the inventory and eliminated all the grease that allows the wheels of commerce to work smoothly,” said Steve Ricchiuto, chief U.S. economist at Mizuho Securities.