The Real Economy: October 2021
The ripple effect of disruptions to the global supply chain
THE REAL ECONOMY |
Fragile global supply chains are facing another round of port closures, factory shutdowns, production halts and labor shortages as the delta variant spreads. These disruptions will almost certainly delay the return of full production in the global economy until the middle of next year and create the conditions for further price volatility until the pandemic eases.
The disruptions are hitting a range of industries, from homebuilders, which are facing difficult decisions of whether to pare back production in the face of soaring demand, to apparel and footwear companies, which are scrambling just to maintain inventories as the critical holiday shopping season approaches.
In this month’s The Real Economy, we examine the ripple effect of these disruptions to the global supply chain, and how middle market companies can adapt to the challenging landscape. We also examine the benefits of the expanded child tax credit, and the steep economic cost of battles over raising the nation’s debt limit.
IN THIS ISSUE
Fragile global supply chains are facing another round of port closures, factory shutdowns, production halts and labor shortages.
Even as the housing market leads the U.S. economic recovery, homebuilders are facing new pressures as they try to meet surging demand.
The disruption of global supply chains will take years to work through and will affect the holiday season across the international economy.
One aspect of the American Rescue Plan signed into law in March included an extension of the child tax credit to send aid to families.
Amazon’s partnering with Affirm is one of the latest signals that BNPL offerings are here to stay after strong performance last year.
After Congress returned from its summer recess, it took little time for the debate over raising the nation’s debt ceiling to escalate.
As social issues gain national prominence, the role of corporations around social imperatives has come to the fore.