Supply Chain Issues

Price of gas has gone up. Price of food. Price of a lot of things have gone up. With regard to gas prices, the Republicans in the States are blaming Democrats, while the Conservatives here in Canada are blaming the Liberals. Of course, the Democrats and Liberals are no angels on this. They do the same thing, when gas prices go up, while the Republicans and Conservatives are in power. In this case, there are so many varying factors involved, that are out of the hands of governments.

For the most part, COVID is under control, given that most people are vaccinated and new medications, as well as, at home testing procedures are coming out all the time. Most people are working again, such that a lot of positions are not being filled, because there are not enough people to fill these positions. Unemployment rates are back to pre COVID levels. People want to buy, want to spend. However, suppliers are still trying to catch up to demand. Since demand is outpacing supply, prices rise.

The world, almost as one, is punishing Russia for its invasion of Ukraine. This is being done through various means such as reducing trade with Russia, including oil and gas, and sanctions. The demand for oil and gas is still there, but the supply from Russia is reduced. Again, demand outpacing supply and prices go up.

Russia, and especially Ukraine, is a major supplier of agricultural products such as wheat. Not much farming happening in Ukraine right now. Major supply shortage. Prices go up.

COVID is striking China hard. China is reacting by taking extremely harsh prevention measures. Shanghai, a major port city, is in lockdown. Goods not being shipped. Other areas of China shutting down. Manufacturing facilities shutting down. China is a major supplier of consumer goods. Goods are not being produced, or, if they are produced, they are not being shipped. Major supply issues. Prices rise.

These are just some of the supply chain issues that are somewhat out of the hands of governments. (Sanctions being a major exception but supported by society as a whole). But government blaming will continue no matter which side of the political spectrum is in power.

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