Re:U.S. Jobless Rate May Soar to 30%, Fed’s Bullard Says
by vanniv on Sunday March 22, 2020 @07:36PM
(#22659833)
In the short term, these kinds of measures can have an effect, sure.
It produces immediate demand at the cost of reduced future investment -- which could potentially keep suppliers afloat temporarily in a crisis.
But while the problem today is a demand problem, we are really only days-to-weeks away from a supply catastrophe unlike anything seen in two centuries or more.
Basically, no new stuff is being made anywhere right now -- because it is illegal to do so most places -- we are all locked in our houses on threat of arrest (or worse in some countries)
Right now, the local warehouses are still full, so the stores get restocked. Those warehouses will get restocked from regional ones.
But, we are draining all of the buffers in all of the supply chains of all of the products. Once it all drains, there is no more supply.
Re:U.S. Jobless Rate May Soar to 30%, Fed’s Bullard Says
by tcbawo on Sunday March 22, 2020 @07:44PM
(#22659888)
We have both a supply shock and a demand shock. We can't fix the supply shock while on quarantine. We can mitigate the demand shock (somewhat) through short term stimulus
It produces immediate demand at the cost of reduced future investment -- which could potentially keep suppliers afloat temporarily in a crisis.
But while the problem today is a demand problem, we are really only days-to-weeks away from a supply catastrophe unlike anything seen in two centuries or more.
Basically, no new stuff is being made anywhere right now -- because it is illegal to do so most places -- we are all locked in our houses on threat of arrest (or worse in some countries)
Right now, the local warehouses are still full, so the stores get restocked. Those warehouses will get restocked from regional ones.
But, we are draining all of the buffers in all of the supply chains of all of the products. Once it all drains, there is no more supply.