What the Economics of Sawdust Can Tell Us About Supply Shortages - Bloomberg

Supply chain problems have catapulted themselves into the realms of White House politics, with President Joe Biden last week unveiling a suite of measures aimed at unclogging America’s ports and modernizing its creaking infrastructure to increase the flow of goods. 

But to understand why supply chain issues can be so difficult to fix — the equivalent of squishing one end of a balloon only to see the other end inflate — it’s worth considering a lesson from public policy expert Steven E. Rhoads. Writing in a new edition of  his book “The Economist’s View of the World And the Quest for Wellbeing,” Rhoads drew an unexpected connection between the price of milk and the availability of sawdust.

(Excerpt via Timothy Taylor at the Conversable Economist)

Adblock test (Why?)

What the Economics of Sawdust Can Tell Us About Supply Shortages - Bloomberg
Read More