How the World Ran Out of Everything: Inside the Global Supply Chain by Peter S. Goodman
My rating: 3 of 5 stars
Goodman has written a well-researched book explaining not only how the U.S. came to have the massive shortages around the time of the pandemic, but also why inflation is baked into our economy. The basic principles are set forth clearly: way too much dependence on China to manufacture our goods, adoption of just in time (JIT) manufacturing here in order to minimize inventory costs (and thus inventory) and pay higher dividends, consolidation of many vital sectors to monopoly or near-monopoly status (ocean shipping, longshoremen, meatpacking, computer chips), weak antitrust enforcement, etc. The details are fascinating, although it does get somewhat repetitive as the same factors play out again and again. The author makes a wise choice of explaining step-by-step how one small toy manufacturer in Mississippi, Glo, had to get its product manufactured in China and shipped to the U.S. in time to fulfill orders for the Christmas season during the worst of the Covid pandemic. It was harrowing and the reader is cheering for Glo in the face of a dearth of shipping containers, overcrowded ships, broken contracts, a failing U.S. rail system, and so on. I was tempted to rate the book a 4, but it’s a bit dry for the average reader. Still, I recommend it.