By Brooke Sinclair
- Supply chain myths keeping consumers paying inflated prices right into the summer, which could hit the Black community harder than others
- Consumer prices had already risen 8.6% over the past 12 months, costing the average American household $175 a month
The hot topic this season: supply chain and the ongoing issues. Although the Labor Department released data proving consumer prices had already risen 8.6% over the past 12 months, costing the average American household $175 a month. Economists and analysts have started selling supply chain myths to keep consumers paying inflated prices right into the summer season, which could hit the Black community harder than others. Let’s dig into three supply chain myths.
Why This Matters: A recent Bloomberg News/Morning Consult survey found that more than 40% of Black respondents reported higher costs at grocery stores in 2022. Minority communities are being hit harder and feel the supply chain pressure because of the disproportionate impact of the pandemic.
“The coronavirus pandemic has impacted every stage of our supply chain, from commodity production through processing and delivery,” said United States Secretary of Agriculture Thomas J. Vilsack in a statement about food supply chain investments.
1. The Global Supply Chain Was Perfect
Bottlenecks in the supply chain did not cause the shortages, the shortages caused the bottlenecks. People were already not being paid enough to compensate for their level of unhappiness. “It’s not going to be fixed. Labor is the biggest problem right now,” said Robert Handfield, professor of supply chain management at NC State University.
2. All Foods and Goods Are Cleared [through customs] The Same Way
Custom brokers Crowley, experts who understand compliance, know to expedite fresh and frozen fruits, vegetables, flowers, seafood, protein, and other perishables through the customs process first.
3. The Solution is for Consumers to Spend More Money
“There’s close to $2 trillion in savings sitting in household accounts, the American consumer is flush with cash and ready to move back towards what we might consider normal modes of consumption,” said Joe Brusuelas, chief economist at audit and tax firm RSM. Do you know who doesn’t have two trillion dollars in savings? Black people.
Situational Awareness: For those who don’t remember, we consumers spent money supporting businesses keeping the economy circulating, however corporations still laid-off workers in spite of getting millions of dollars in PPP loans. My recommendation for everyone this holiday would be to save your money. Learn more about the supply chain in the interview “N^3: Food, gas & rent are up: Should we be concerned about inflation?” with DJ The Money Coach on the 7 Spheres Of Money YouTube channel.
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