(PresidentialWire.com)- In a desperate attempt to get inflation and consumer prices under control as well as enabling the US to better compete with China, the Biden Administration announced on June 8 that it would be forming a task force to address supply chain bottlenecks in the construction, transportation, semiconductor and agricultural sectors of the economy.
The shortage of raw materials due to economic lockdowns during the COVID pandemic has created this supply bottleneck and, in turn, is further fueling the current rise in inflation.
The task force, led by the cabinet secretaries for Commerce, Agriculture and Transportation hopes to pinpoint the areas of the economy where there is a significant disparity between supply and demand.
Once the review of supply chains are is complete, the task force will then seek to increase domestic manufacturing, limit shortages of vital goods and ultimately reduce US dependence on foreign competitors like China.
According to Sameera Fazili, deputy director of the White House National Economic Council, their approach to “supply chain resilience” must “look forward to emerging threats from cybersecurity and climate issues.”
“We are future-proofing,” Fazili explained.
That’s all well and good, however, it isn’t the future that is concerning most Americans. Rather it is the present economic crisis of rising costs and increasing inflation.
Calling the current shortages that are fueling inflation “kind of good problems to be having,” Fazili explained that it means demand from consumers and businesses is returning.
According to Fazili, many of the resulting actions the task force comes up with to address the current bottlenecks will be taken, not by the government, but by private companies.
In addition to the cabinet-level task force, the Biden Administration will take several other steps to relieve the bottlenecks in supply chains. These steps include spending a lot of taxpayer money.
Whether any of these steps actually do anything to address the current economic malaise is difficult to say. Increased government spending into the economy tends to fuel recession and inflation rather than alleviate it.
So rather than turning the inflation around, the Biden Administration may only end up prolonging it.