Secure Seating: Lack of Patio Furniture Tells US Economic History | Way of life

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Cockeysville, Maryland – People went to Valleyview Farm to buy five tomato plants, which ultimately cost $ 5,000 for patio furniture.

This year is different. After a record increase in sales in March, showroom floors have few outdoor chairs, tables and lounge chairs to buy.

A garden store on the outskirts of Baltimore has been waiting six months for a shipping container from Vietnam filled with $ 100,000 of rattan and aluminum furniture. Half of the containers were sold with photos shown to customers. The container was due to arrive in February, but arrived in U.S. waters on June 3 and has just docked in Long Beach, California.

“Everyone is way behind,” said John Hessler, 62, patio section manager. “I’ve never seen anything like it.”

Biden’s economy faces the unusual challenge of being too strong for its own benefit.

There is a paradox that more than 6% is growing the fastest of the generation, but there is also a lingering delay for those looking to buy furniture, cars and a variety of other goods. This is the exact opposite of the recovery from the Great Recession of 2007-2009, hampered by slower growth, as well as the near instantaneous delivery of almost any commodity imaginable.

Ultimately, it’s important that businesses meet long wait times and maintain sufficient demand to reduce them.

Gus Faucher, Chief Economist at PNC Financial Services, said: “Too little demand is the recipe for a prolonged recession, so it is far better to have too much demand than too little demand.

Republicans have refrained from shortages and rising prices as signs of economic weakness, but Biden can counter rising wages at a pace that is helping the middle and working classes. But the real challenge is politicians’ frank discussion of the economy, which is manipulated by a combination of market power, tensions with China, withdrawal from natural disasters, and the unique nature of the economy’s recovery after a pandemic. It is way beyond the point.

As the United States rushes from the July 4th weekend to midsummer, the outdoor furniture industry provides a glimpse of the dilemma facing the economy. As Americans have been quarantined for more than a year and then resume barbecues and parties, a series of shortages have depleted their warehouses and prices are rising by more than 11% each year. The industry cannot find workers, truck drivers or raw materials. This is the result of not only government spending, but also port congestion, an explosion at an Ohio chemical plant and a devastating snowstorm that hit Texas in February.

The Associated Press interviewed the patio furniture maker said it expects supply pressures to end in 2022 or 2023. So, as many analysts on the Board of Governors predict. Federal Reserve and Wall Street, this could remain a political flashpoint, even as the generalized risk of inflation subsides. . The shortage reflects both the shortage of left-behind shipping containers, the shortage of truckers and the combined effects of April’s deadly explosion at the Yenkin Majestic Paint and OPC Polymers plant in Columbus, Ohio.

The Biden administration is fully aware of this challenge and is prioritizing supply chain changes. He is also looking to invest more money to make the U.S. electricity grid and other infrastructure more resilient to extreme weather events as part of a bipartisan deal with the Senate Republican Party.

Government officials are cautious about claiming a particular deadline due to the unprecedented nature of the recovery from a pandemic, but hope the supply chain issues will correct themselves.

They said the toilet paper shortage at the start of the pandemic was corrected within weeks as the factory could increase production. But in this case, Biden’s White House sees the problem from a global perspective. Many of the challenges are not just national issues in nature, but in Asian ports.

Republican lawmakers are only responsible for Biden’s $ 1.9 trillion coronavirus bailout, saying the shortage causes inflation that behaves like taxes by consuming workers’ wages and savings. .. Outdoor furniture companies say it has become more difficult to find workers, in part because of rising unemployment benefits, but the Republican line says government dollar is causing sustained price increases. . I do not really agree.

In many cases, companies are simply trying to absorb higher costs. Eric Mueller, CEO of Watsons, a Cincinnati-based outdoor furniture and home entertainment chain, said he wanted to protect his store’s reputation for added value. He doesn’t think this situation helped Jimmy Carter quit the presidency a term later, alongside the stagnation and inflation of the 1970s.

He thinks generous unemployment benefits hamper employment because people can earn more by not working, but Mueller also sees inflation as a ripple effect of a pandemic. I go. Some people were unable to work because of illness or their shift was cut. The supply surge when the economy picked up came too soon as factories and shipping companies were still unable to return to their previous capacities. It all had to do with the United States, who simply praised the relief of relaxing by the pool with friends after a brutal year.

The problem is one of the powers of the market beyond the authority of the individual, or even the President of the United States.

Source link Secure Seating: Lack of Patio Furniture Tells US Economic History | Way of life

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