Global Supply Chain Failure

The failure of the US global supply chain is at least as old as that of the US. Its history can be traced back to the Boston Tea Party. Incidents of unreliable supply of tea and other products, high prices and high taxes.

At that time, enterprising Americans stood up and overthrew the economic dictatorship, and finally declared a free and independent country.

In the next century, the United States basically still adhered to this creed:; “Buy American products” has created the most outstanding economy on the earth. The American economy is remarkable because of the balance between supply and demand. American raw materials and American parts are supplied to Detroit’s powerful automobile manufacturers. Power comes from coal mines up and down the Appalachian Mountains, and steel and glass come from factories in Pittsburgh.

At that time, the operation of the free market maintained the balance between supply and demand. Factory level decisions mean that these administrators can budget, plan, and store everything they need to continue production. If plant managers find a shortage of coal or steel, they will store more inventory to meet future shortages.

Equilibrium comes from all participants in the supply chain. They acted for their own interests, but produced a symphony of economic harmony and order. This is an amazing process. Nearly 200 years ago, Adam Smith called it this way. “Invisible hand”;

Unfortunately, in the 20th century, American politicians and unscrupulous business interest groups believed that they had a “political” side; a better way is to “go to the world.”. The oil industry is one of the first industries to develop in this direction. After the development of rich Saudi oil fields in the 1950s, Aramco steadily increased the dependence of the United States on suppliers outside the region.

But 20 years later, Saudi Arabia reversed the situation. From then on, it will be controlled by the Saudis, not the Americans. The oil and gas of the United States are at the edge and will be in the hands of the Saudi royal family.

Later, Saudi Arabia will form all Middle East oil countries. They will extend their influence to the whole world. Americans find themselves in the cold now. Just like during the OPEC oil embargo, for the first time in our history, there was no energy in the severe cold. Thirdly, we rely on others in the most basic economic supply.

It’s like the Boston Tea Party. Dependence on foreign supplies has only led to deficiencies. Americans have not learned the lessons of our history. Relying on others, we will not get enough in the end.

Similarly, in the 1990s; “The undervalued United States”; start. The entire technology department seems to operate under a common business model. Sell to Americans, but build everything in China. Apple was the first company to adopt this production method. Apple will produce iPhones, iPods, Macs and other products in China. At the same time, the United States is designing and selling these products.

Tim Cooke, CEO of Apple, remembered the particularly funny moment when Chinese factories tried to prove that they were not manufacturing factories. They are just assembly plants. There is no difference. But Mr. Cook will slice it. These supply ships span the Pacific Ocean. Apple does not offer this kind of work to Americans.

Today, I can hardly imagine an American technology company that does not use overseas factories to produce products. Therefore, our supply chain today is no longer secure. Once again, we rely on distant suppliers with different business ethics and quality standards. The price, reliable supply and construction quality are beyond the control of Americans.

The Boston Tea Party was a defining moment in American history 249 years ago. The moment when a series of events leading to the independence of the United States began, as a result of the non observance of the rules of the organization known as the Son of Freedom. At that time, Americans were tired of working for remote elites, and their only goal seemed to be to exploit northern colonialists.

I felt that we were close to the flash point again.

The time approaching the new “combination” is “the son and daughter of freedom”; stand up again and declare independence from today’s intertwined global elite.