Road construction projects, auto parts, home improvement projects and other aspects of American life continue to be affected 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 continuous shutdowns due to its zero COVID policy. China has locked down various parts of the country especially the southeast area where there is a lot of trade.
Banaian says the price of shipping goods from China to Los Angeles has increased dramatically 10 to 12 times in 2021, but is now half of what it was even 6 months ago. He says there just isn’t a lot of goods coming in. Banaian asserts that the supply chain problem is an international problem and not just a US problem. He says the United States is not an island, we are in a global economy and are affected by COVID cases and the war in Ukraine.
The subject of the recession continues to be discussed by economists. Banaian says he continues to think a recession will occur in the United States and projects that to happen in late 2022 or early 2023. He thinks many Americans have used up their vacation savings for the past two years and that, coupled with the price of so many items going up, their savings are running out.
Banaian thinks Europe is currently in a recession and everyone will see it in the next few months. He says if China struggles to achieve even zero growth this year, it will be difficult for China and the United States to avoid a recession.
If you would like to listen to my conversation with King Banaian, it is available below.
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