SCSU’s Banaian: Reasons for Supply Chain Issues in Central MN
Road construction projects, car parts, home improvement projects and more aspects of American life continue to be impacted by supply chain issues. St. Cloud State University Dean, School of Public Affairs and Economics professor King Banaian joined me on WJON. He says China has had rolling shutdowns because of their policy to have zero COVID. China has locked down various parts of the country in particular the southeastern zone where there is a lot of trade.
Banaian says the price of shipping goods from China to Los Angeles have gone up dramatically like 10 to 12 times in 2021 but are now half of what they were even 6 months ago. He says there just isn't that many goods coming over. Banaian says the supply chain issue is an international issue not just an American issue. He says the United States isn't an island, we are in a global economy and are affected by COVID cases and the war in the Ukraine.
The topic of recession continues to be discussed by economists. Banaian says he continues to think a recession will happen in the United States and forecasts that happening at the end of 2022 or early in 2023. He believes many Americans used their savings on vacations the last couple of years and that coupled with the price of so many items going up, their savings is running out.
Banaian thinks Europe is in a recession right now and that will be apparent to everyone within the next few months. He says if China is struggling to even get to zero growth this year it will be hard for both China and the United State to avoid a recession.
If you'd like to listen to my conversation with King Banaian it is available below.