Economists who don't pay attention to details of production are not economists. Production of cars, oil and meat was disrupted because they are "just-in-time" and bottlenecks in production or transport (like shipping/ports/trucks) hurt.
Thread
Thread
https://twitter.com/JHWeissmann/status/1484362397406031872
2/ Started the thread here 2 years ago, as it became clear that coronavirus would shock the world economy. The shock of E Asia shutting down was immediate to markets & commodities and our "just-in-time" fossil-fueled systems #CoronavirusImposesCarbonTax
https://twitter.com/70sBachchan/status/1224136387978579968
3/ The idea of #CoronavirusImposesCarbonTax thread was to understand structure by exploring how a shock propagates across the world economy. Economists find out in 2021 that bottlenecks caused inflation in sectors of OIL, CARS and MEAT.
https://twitter.com/70sBachchan/status/1224414261855817728
7/ Core idea of #CoronavirusImposesCarbonTax thread
https://twitter.com/adam_tooze/status/1240368727092322305
8/ A broad anti-materialist shift in economics took place a few decades ago. Solow taught them to be satisfied with "pinging sonar off the substance of the world" (Though some subfields like Industrial organization and Trade kept an eye on production.)
https://twitter.com/70sBachchan/status/1414744823815409664
9/ Big chunk of Inflation is Transport bottlenecks in trucks and ports & warehouses that increased costs of distributing goods. But why worse in US than Europe?
Shit jobs/pay for Truckers in deregulated industry ht
@ddayen prospect.org/economy/great-…
Shit jobs/pay for Truckers in deregulated industry ht
@ddayen prospect.org/economy/great-…
https://twitter.com/GitaGopinath/status/1483973091378462720
10/ 'Modern supply chains are "lean." Excess is inefficient, and costly. But despite calls to "resiliency," these lean supply chains offer little margin for when things go wrong. As Peter Goodman and Niraj Chokshi put it, "Just In Time is running late."'
https://twitter.com/hockendougal/status/1438538388991266823
11/ Biggest factors in rising inflation: Oil, used cars trucks, energy, and gas piped in by utilities, then meat, poultry...
US Govt planning went into 2000s Shale & Corn-Ethanol boom.
Why not for Green Electricity, Public transit etc asks @KateAronoff
nymag.com/intelligencer/…
US Govt planning went into 2000s Shale & Corn-Ethanol boom.
Why not for Green Electricity, Public transit etc asks @KateAronoff
nymag.com/intelligencer/…
12/ Why inflation? Monopolization -> price setting firms, deregulation -> just-in-time logistics.
"Behind all of these choices was Wall Street, insisting on more profit maximization through deregulation, mergers, offshoring,and hyperefficiency" ht @ddayen
prospect.org/economy/how-we…
"Behind all of these choices was Wall Street, insisting on more profit maximization through deregulation, mergers, offshoring,and hyperefficiency" ht @ddayen
prospect.org/economy/how-we…
13/ "We take a journey through the supply chain, from offshored production facilities, to mega-container ships, to ports bursting at the seams, to deregulated rail and trucking services, to warehouse way stations, to retail and commodity profiteers."
https://twitter.com/rakeen_mabud/status/1488144951284277252
14/ Why inflation? Decades of disinvestment & deregulation of American ports. No US port appears in even top 50 of World Banks top 500. While Europe's port authorities-trucking-shipping all share data for efficiency, US is disorganized.
Superb piece:
Superb piece:
https://twitter.com/alex_sammon/status/1489269627582664707
15/ Why inflation? A Climate Dragon breathing fire is stalking the realm.
"A single woodland province furnishes timber for most American homes; a single highland country grows nearly half of the world’s magic beans" ht
@yayitsrob
theatlantic.com/science/archiv…
"A single woodland province furnishes timber for most American homes; a single highland country grows nearly half of the world’s magic beans" ht
@yayitsrob
theatlantic.com/science/archiv…
https://twitter.com/yayitsrob/status/1489262202041237524
16/ Why Inflation? Soaring Transportation costs. "Wall Street demanded that railroads reduce capacity and cut labor for decades, leaving them totally unprepared for increased demand"
How America’s Supply Chains Got Railroaded
prospect.org/economy/how-am…
How America’s Supply Chains Got Railroaded
prospect.org/economy/how-am…
https://twitter.com/ddayen/status/1489603590259830785
17/ "Not only did Americans get the bad jobs,the left-behind regions,& the soaring stratification between rich and poor—when the supply chain broke down,they lost the low prices,the only compensation for all these other horrors"
Spl. Issue : Why Inflation? prospect.org/supply-chain
Spl. Issue : Why Inflation? prospect.org/supply-chain
18/ Big chunk of Inflation is Transport bottlenecks in trucks and ports & warehouses. Deregulation of trucking turned it into shit pay. Average income of US port truck drivers, after expenses, is $28,000. It used to be triple that before Carter!
https://twitter.com/HaroldMeyerson/status/1490739979781296135
19/ Why Inflation? Deep dive into economics of warehouses by @gurleygg. Toyota adopting W. Edwards Deming inventory management (don’t waste money on storing inventory) to Walmart to Amazon.
It works great when everything is predictable—until it isn't.
prospect.org/economy/wareho…
It works great when everything is predictable—until it isn't.
prospect.org/economy/wareho…
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