How Globalization, Spiked Prices, Caused Shortages, and SCREWED Everyone
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- čas přidán 23. 06. 2024
- Krystal and Saagar are joined by Peter Goodman to discuss how globalization wrecked our economy.
Peter Goodman's Book: www.amazon.com/How-World-Ran-...
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"They got us fighting a culture war so we don't fight a class war"
And it’ll never end cuz people have more culture than they have money. culture feels more compelling when it’s basically all you have.
It feels worse to lose something than to gain something. It’s a catch 22 for the masses. It would take russian revolution level issues to get people interested in fighting for their economic conditions (an ultimatum between dyeing and revolting).
STUPID is as STUPID does... 💯💯😄😄😄
@@Syzygy_Blissit takes 9 missing meals for a revolution to start.. 💯💯😄😄😄
@@Syzygy_Bliss Sadly I agree.
They invented racism to keep us distracted.
Cutting down your choices forcing you to buy from specific companies owned by specific oligarchs also making it impossible for competitors to catch up. And once you’re the only choice you no longer have to care about quality control or the satisfaction of the customer. And letting foreign people buy American real estate at inflated numbers with foreign laundered money has made the average price of a home a million dollars when our grandparents didn’t pay 30k for the same house. Things really need to change. It’s not the people who need new laws and hoops to jump. it’s our government who needs new laws to keep them in check.
No one can compete with JBS Foods because they only have a 1.85% Profit Margin, Uncle Sam takes around 30% yet no one on the Left is complaining
JBS Foods has a 1.85% profit margin would you compete against that ❓ Uncle Sam takes around 30 percent yet no one on your side accuses him of price gouging.
The word you're looking for mi amigo is "Neo-Feudalism". But guess what, they already won the game and control everything. Nothing short of revolution or violence will change the system. But also guess what... Americans are some of the most apathetic and ignorant people on the planet so that will never happen.
Sounds like Aerospace
@@johndellorusso9936 It's the GOVERNMENT, stupid. Obama's ACA and CCSS destroyed Retail and Education. Biden's Lockdown and Slüsh Funds went straight to Pharma and Wall Street Big Banks. Millennials are being depopulated under Democrats. 500,000 a year by opioids alone. They are after your Boomer Inheritance. And they'll get it by marching you off to EU.
They maximized for cost savings instead of resilience. The supply chain shattered like glass the moment the lock downs and disruptions hit.
They maximized for PROFIT (costs have never been higher). Resiliency, consistency, quality, cost to customer, safety, none of that is being prioritized
“Fiduciary duty “ of companies should be codified to do no harm to the nation you do business in BEFORE the duty to maximize profits.
why not world?
The reason these companies don't stock up for supply shocks or other economic disturbances is because they know that daddy taxpayer is always willing to bail them out. We need to let these over-extended businesses fail so that smarter people run them.
Not the taxpayers. It's our "representation". The only shocking thing is that people keep voting for them. It will be a disgrace for centuries that we've allowed this to take place
We need people with integrity to run things not just “smart” people. Are these people running it now really all that dumb when they know they will get bailed out when they don’t prioritize society or the customer? They’re being incentivized in this economic climate to act in this way
The nature of corporations is to make profit for shareholders. Biggest problem imo is voters who focus on culture war issues and know nothing about issues like this
Careful. You may get accused of being one of those terrible, terrible class reductionists.
That’s the purpose of creating “white supremacy”. Keep the people at the bottom fighting against or seperate from those they actually should be in solidarity against the large capital owners and money based aristocracy.
Culture wars, yes. But also the problem is the government mandating that corporations must, in essence, focus on the shareholder (aka make profit/money) while totally neglecting the workers, the supply chain, and all the systems that depend on the company to actually run is just insane. This insatiable appetite we have for profit and utilizing the metric of "Growth" as success is just unhealthy, unrealistic, and brutally harmful to the average person and humanity at large. Thus you have, unfortunately, B*eing having airplanes falling out of the sky k*lling people all in the name of profit. Again, insane!!
You do know voters require politicians who will actually act on these things, don't you? Blaming the voter is never correct. While you're over there blaming the citizens, there are politicians out there distracting people from the real issues. Put the blame where it needs to be.
It still wouldn't help them understand that Wallstreet itself is now nothing but "Activist investing", holding EVERYONE hostage to either post up double digit Margins or get triple-digit 'Shorted' like Gamestop
Peter Goodman missed a key component of Toyota's supply chain just in time innovation, that almost every other company misses. Keep in stock a supply of hard to source parts so that manufacture can continue if there becomes supply chain issues. Yet that costs a bit more money than doing it wrong and keeping no extra parts on hand with just a "little" extra risk.
Their strategy used to be the norm.
Most companies had a warehouse and kept a number of parts to continue production.
I was working when the just in time managerial shift and anti-monopoly laws were ignored.
It’s all a legacy of neoliberalism and the capture of political power by capital.
Why didn’t people see it?
Because the MSM is owned by billionaires and their editorial bias ensures their interests come first.
Toyota's lost market share.
You’re 100% right. But obviously he didn’t talk to anyone in supply chain and learn about long leads times for a random of the shelf parts.
@@kevinwilkins7851still profitable. Companies are used to not only now lowering profit margins or breaking even, they want EVER INCREASING margins.
@Toms7114 you're absolutely right, just in time is poorly implemented by just about anybody other than Toyota and Walmart due to issues with company culture and understanding the point behind the methodologies AKA a proper economic order qty formula takes these critical supply events into account but they hear "hold no inventory" and follow blindly
Same thing for lean six sigma almost no one other than them really "gets it" bc of bonehead American management
For those wondering I am a Supply Chain & Operations Professional who has literally worked on these issues at this scale
I worked in the auto industry and directly managed JIT inventory as well as vendor managed inventory. Logistics and Supply Chain Management students were essentially brainwashed to believe that JIT inventory was some amazing revolutionary process. All it seemed to me was the bigger business smashing their inefficiencies onto their Tier 1 suppliers, the Tier 1 smashing the Tier 2 and so on. If you're late on delivery? F you, pay me! If the shipping container of your parts fell off the ship into the ocean? F you pay me!
It was just an easy way for the F 500 companies to pad their bottom line.
A good representative of this is gas prices. The US is literally producing the most oil ever, yet prices of the global commodity is still high. Private industry has no incentive to sell it locally if there is a higher bidder offshore
Opec cut production in retaliation to Biden’s ill conceived war on fossil fuels to placate the global warming theologians. That raised costs around the world, it’s what happens when a potato is elected President and lets children in his administration make policy.
yes and no we have to deal with OPEC and mismatched crude refineries with heavy oil spec with light oil domestic production
😂
With prices high, why are we not seeing increased domestic production? There's only one answer.
@@qwerty6574 we are seeing increased domestic production, Look it up.
@@qwerty6574Yes exactly. Obama destroyed Retail with ACA, then Biden's Lockdown stuck a fork in it. *Supply Destruction R USA.*
If you think things will get better when the Boomers are gone, you're dreaming. Blame the wealthy. Not the elderly.
You're missing something important:
Boomers are the reason we can't change things. We are living under their status quo. And they like it this way.
@@anthonytwohill9726 You're generalizing. And you're ignoring that this is the wealthy's world.
typical collectivist generalizations are boring, can you add something new to the conversation?
@@justanotheroldguy738 So when one particular group holds more wealth than the rest combined, that would make them the "wealthy". Thus the elderly is at fault... Still wanna play the blame game or are u ready to start fixing something for once?
Dont blame the wealthy. Blame the politicians that protect the wealthy. Without government bailouts, protections, and programs, monopolies would be rare and short lived.
Monopolies and big government suffering from over-simplified models
You mean benefiting from that?
The only actual shortage we have in America is a shortage of pay.✌️
Agree somewhat. But how many flat screens does regular poor family have? Cable bill? Massive Cell phone bill?
American dream changed I guess
@@destroytheboxes No one can afford to have kids, which is more expensive than everything you just mentioned.
Cut that boomer crap out.
Never forget when BP said this was all temporary, 3 summers ago.
100%
The rate of inflation yes. And it did slow. Inflation from supply shortages is essier to predict. But price gouging inflation is harder to predict bc it depends on if oil producers, big business near monopolies/cartels etc want to price gouge (how many companies own almost all the food?).
Prices also don't usually come back once they go up.
And they blamed Trump.
No one expected joe Biden to prosecute a war that further destabilizing the fragile world economy.
@@litedawg Nah, they blamed inflation on the pandemic (and corporate price gouging), not Trump.
Strangely enough , there were very lockdowns in developing countries like Bangladesh because the elites did not want their companies closed down . So there was no shortage of goods , shops were filled up . Poor and active people did not get Covid , only the elderly , over weight , coming from the upper and rich class got Covid . Many people did loss their jobs , but the numbers were not very large . Also another strange thing , number of Covid cases remained low despite most people not keeping distance or staying at homes
Peter totally surprised to be asked clever, relevant important questions!!! Media in general is so disappointing. Breaking points a breath of fresh air!!!
The title has one too many commas: the very first one should go. How globalization spike prices, caused shortages, etc etc
lol First thing I noticed
Lmao BP is lazy af
Try reading it again. You are incorrect.
And you need a colon after The title has one too many commas.
Superficialities take away from the things in life which should take priority.
Australia has a Gas shortage and are the biggest exporter of gas (making the least money on extraction too). So it doesn't even need to be a secret for people to accept shortages in the face of surplus to export.
Not to mention that Australia pays more for gas then it does from exporting it and is finding out that countries it exports to are on selling the gas as a competitor (including back to Australia)
That is batshit crazy!
A lot of that is due to geographical factors. The distances between areas where gas is currently being drilled to where the domestic consumers are would be considered an "international distance" in most parts of the world.
As for the part about the price being received from exports - that was due to contracts signed when the gas price was low. Annoying, but it's not like anyone knew that covid, etc was coming 10 years ago when the contracts were signed.
If they allowed more new drilling, it could resolve some of these issues.
@@evanburrows1697
That don't cut the mustard.
It's not a geographical problem that Australia gives its gas away when every other Government that exports gas, makes money off it, hand over fist.
If Australia had proper royalties in place they could afford to fix the issue without new gas projects.
“Engineered scarcity”
Krystal you want to know about trucking. Ask a trucker. Just let me know when you want to talk
Great interview on an important and interesting topic
This is what class warfare looks like. We live in a corrupt oligarchy. We need ranked-choice voting, ballot access, and more parties.
And you think changes on political structures will change anything? Is this systsm immune to oligarchs' corruption?
@@phoenix5054 Zero guarantees. But I'd try this first any day over the darker alternatives.
@@carycunningham9510 The thing is you need to convince both incumbents from GOP and Dems to make this happen, and the 3rd biggest party in the US is the Libertarian Party, which is the most pro-oligarch party there is. So much political push needed to be done for so little return.
We aren't voting our way out of this. We need to drastically reduce the size of government
@@adamdrouin2295 Welp, snap your fingers and make it happen! You'll have to get through multiple three-letter agencies (FBI, CIA, DHS, etc) and millions of police, military, and private military contractors but hey, show us how it's done. Our corrupt politicians in the Purple Party only want to shrink government for the people (e.g. food stamps), but not government for corporations or the security state. But hey, you do you!
Wait... Aren't monopolies illegal? Sooo, what are "we" doing about it? Oh, that's right, banks got pissed, so "we" chose Apple. 🙄
Thank you for bringing him on and discussing this subject!
Suits gamifying metrics for market manipulation seems to be a common theme across the board.
My long held theory is that accountants are responsible for some of the worst crises in modern history, from Enron to the GFC to the supply chain crisis during the pandemic.
This brings up the question, who do we want corporations to benefit? Investors? Consumers? Workers? A mix? Right now they entirely operate for the benefit of investors. We can change that
Almost like there are problems with "just-in-time" economics
Excellent interview! I may order this book!
Came here to fix your headline. Globalization is the subject. Spiked is the verb. No comma between them. Thanks.
This gentleman mentioned something about the dockworkers slowing things down at the ports in protest to the increase of automation before the upcoming union contract negotiations. I am a port driver and I see the effects of this every day. ironically, they are just proving the need for automation at the ports. It’s a story worth looking into.
Were'nt independent truckers forced out of CA with the law that made gig and independent workers illegal? So this shortage of truckers who could operate in CA forced container ships to sit off shore waiting weeks to unload.
Where are you get this information ?
@@MrStCyrX AB5 bill that was passed in CA
They were not made illegal. That's ridiculous, they should be viewed as employees like they are.
@@michaeld4861 So what do you call it when you can no longer be an independent operator in CA?
The actual impact of closing all the slaughterhouses would be a healthier population.
Sure, global trade has its downsides, but I hope that the ''First World'' realizes that it owes its comfort to cheap products and labor from the ''Third World''. Bringing the jobs back home is going to result in a huge drop of living standard for most people.
Government can print unlimited money and it doesn’t have a negative effect on inflation. Got it.
Left thought process amazes me.
Phenomenal segment.
And you wonder why nationalism is taking hold and taking over.
Not having to depend on your enemies is always a good strategy.
Dang… I too had a child in April 2020. I thought I was an old dad until I watched this 😅. Thank u sir
They tried to compel her to have an abortion??? That is so disgusting. Someone should fund her suing them for retaliation and a slew of other things. Very eye-opening and concerning.
Who tf was tweaking while creating the title 😂
This, is, your, brain, on, meth?
It's not that hard to understand. Lock people in their homes and not go to work and you will start a shortage very quickly. Companies that don't embrace "just-in-time" stocking levels have already gone out of business due to lack of competitiveness. Companies will always seek competitive advantage. It's either that or get eaten.
hey hey hey not everyone, Wall Street did incredible 💀
Why are there so many grammatically incorrect, unneeded commas in the title? 😂
Because of problems, with school, and how they teach, to kids, nowadays
Great interview/topic.
Maybe with the drop of commercial real estate, storage prices can drop to where JIT can be hedged with some inventory
I imagine Mr. Goodman's book draws on more examples than those provided by responses to the COVID-19 pandemic, but Sweden's response, not shutting down its economy, provides an example of how to maintain enterprise during an extreme challenge. Sweden's response to the pandemic kept enterprise running and resulted in the lowest excess death rate globally, though Sweden falls mid-pack among nations for Covid death rates. Given the lack of certainty in attributing cause of death to Covid, the excess death rate performance by Sweden's response to the pandemic seems to recommend a model worth copying, and if widely copied would have sustained supply chains during the pandemic.
Great interview!
Now you have my attention. I will read this book. Thank you Breaking Points. Main stream media from CNN to Fox would give this 3 minutes and move on.
You can definitely tell this was Krystal's guest lol
Every guest is Krystal’s guest.
Lol ya and he was super informative. How terrible
@@FKA_Skull Except Candace Owens the other day lol
You know what also cause shortages and prices spikes? The covid lockdowns which Krystal supported.
Buying this book. Been saying everything this guys been saying (thanks to Krystal and Saagar) for years now!
I was in different levels logistics and supply chain for 10 years. This has been the envitable result when the system hit even smallest of snags
Efficiency and fragility are tightly coupled
Engineered scarcity - diamonds
Goodman needs to run the Fed.
Feels like I’ll be dead and gone before anything changes
I like how he talks about how "we" are not "trained" to see Monopoly power in the world. Lol, but once you are trained, you can help but see it. Blows me away, everyone is asleep at the wheel...
We’ve been waiting on 3 Dodge body parts since January 😢
...well, not everyone...
It didn't screw everyone. And there are some individuals and corporations doing quite well off of everybody's misery.
Saagar back in the day...."not enough shipping containers...all made in China...need to make shipping containers in USA..."
My friend drives. Says loads have been slow. So idk about trucker shortage. I think it may be both. Supply shortage and trucker shortage.
My comments on the other video about "nayne el ehven" were censored and don't appear in a private browser window. Commenting here as a test
Confirmed, I can comment here, but not there
I was interested until I heard that this guy was from the New York times. I just can't take anyone employed there seriously anymore.
Speaking as a CPA, blame inflation mainly on massive goverment spending (using our taxpayer money) and the Federal Reserve's monetary policies based on MMT ideology (including interest rates being set way too low for way too long).
Inflation is a hidden tax and literal theft by government through intentional devaluation of the currency and as a result, citizens' purchasing power.
Therefore, the Federal Reserve's inflation target should be 0%, not 2%+ CPI. Anything more than 0% is theft by the government from the people. Not to mention, "2% CPI" is really 5%+ true inflation if you use an independent measure of inflation like Truflation or ShadowStats rather than the government's artificial CPI. The government's CPI metric is intentionally designed to leave out certain baskets of goods and services that Americans spend their money on, and disgraceful "hedonic quality adjustments" because it benefits government to underreport true inflation (to lower the real costs of paying huge government debt, and to limit increases to government payouts like social security).
Thank you!
This is literally just bs talking points. The idea that a healthy rate of inflation is 0% is not held by any economist. And the fact that the fed should “bring pain until inflation is at 0% would bring far more harm to normal Americans and the economy than any government spending. And it’s been proven that most of the inflation was corporate price gouging. Wow it’s almost like everything you said was wrong!
Nope. A lot of what you said had been disproven and hardly any of it is backed by legitimate economists
@@SurefireMa156 Feel free to refute my specific points, but you have nothing other than general reliance on some "economists" who led us to this mess in the first place. Keep in mind the current administration's top economist (Bernstein) has ZERO economics experience or even education
@@SurefireMa156 Then lets see you put an argument on the table that refutes his point bud. This whole nope thing makes you look like a shallow thinker.
PREACH!!!
❤
Krystal Ball looks like "the Hulk"...
Krystal still loves goverment and thinks they can "fix" everything.
Great interview. I'd love to see more coverage of long term trends.
Everything was working fine until governments instituted poor policies during COVID. All they had to do was nothing, but they couldn’t help themselves.
You are joking!? Overproduction, overpopulation and overconsumption has been a problem for 70 years.
Everything was working find until we had a world-wide pandemic - which we have recovered from quite quickly.
I don't remember a pandemic in 2008...
Who do you think OWN the government?? You?? 😂😂😂
@@peterstafford4426shut up bot
How non-cooperation in globalization did all that… There I fixed it.
Nationalize the trucking industry. Rail roads. Airlines. Shipping.
This will better deter smuggling
Entirely too many commas on that title 😂
Sounds like what jeep is doing with some cars. 4:00
the irony is that the link to this dude's book is to Amazon, surely one of the protagonists he's talking about
The last thing we need is more government "helping" with supply chain. Government does one thing well; spend money they don't have. They contributed greatly to these companies offshoring manufacturing in the first place. And now more government is the answer to fix it? I spent 15 years working in supply chain, a few of those for one of the "cartels" he referenced. The problem is way more complex than he makes it sound. More regulations will slow things down and increase price.
Literally no one on earth works less than CEOs. They just want to defraud their investors, employees, and customers.
Tom Friedman used to praise "just in time shipping." Will he admit he was wrong??
Whoa whoa whoa, Krystal, you mean we were lied to during the pandemic? Would you care to delve into all the lies during the pandemic or are certain ones still off limits?
Global factors definitely caused many troubles for the world and average Am’s, but the “specktacular” character, audacity, vision and results for average Am’s our gov officials consistently achieved throughout was truly remarkable!!! “Wow” 🙄
we dont think it had to do primarily with shutting down the world and giving people money at the same time?
We’re not willing to do anything about this . We all see it . But nothing will be done . Same ol same ol
Never bought a single bottle of hand sanitizer. Didn't buy TP until summer 2020. Was able to share our beef with neighbors. Perks of being an extremely rural rancher. My husband felt the pandemic more when he went trucking.
How is it fair to make companies pay extra to keep redundant inventory just incase of a blackswan event like a global pandemic. It is the role of govenrment to be prepared for these anomalies.
Thank goodness most our business people aren't as evil and greedy as he claims. That would be a starving nation.
Its not simply "globalization." Globalization is inevitable and always was. It's our particular style of globalized capitalism. When profit os the prime motive society doesn't run well.
You could also say our current system of capitalism is what's profit over people. This is why corporations need to be strictly regulated. Massive bonds for CEOs executives and shareholders involved in any stock BuyBacks
I'm not sure I understand what this guy is saying. I hear him complaining but he isn't giving any real solutions other than more regulations and more government funded programs. Complete idiocy when your government is a debt hog and in debt 34.7 trillion. My best advice is buy from local farmers and anytime the government says I'm here to help you, run the other way.
It would not have been this bad without the forced use of the petro-dollar and the resulting artificial US dollar demand.
Globalization in general puts heavy pressure on small businesses causing many to go out of business. In general I oppose regulation but right now these globalization behaviors should be reviewed for possible additional regulation. Human nature makes governments horrible. It also makes the private sector horrible. Pitting one against the other can provide some sort of "balance" and makes the whole issue unpalatable.
The whole world was learning from diamond cartels and playing catchup to toyota. But Toyota had already shifted because of earthquakes.
Old news here. Nothing anyone in the know didn't hear 3 years ago.
Sorry but running out of meat doesn’t mean people go hungry.
Think you might wanna remove the comma after globalisation
Did not screwed every one, it did what it was intended to accomplish - the top 1% made a lot more money.
He slept with a Truck Driver through 8 States ! 😅😅😅
Every country printed large sums of money and distributed it to the population.
I mean they always tell us to diversify…
Too many people in management that care about metrics that don't matter. So stupid to send cargo where it isn't needed, just a waste of time and resources. How hard is it to make a profit without cannibalizing your own business?
That's capitalism, Buddy. Always about squeezing profit out of everything.
Its often because there bonuses are tied to it. My last employers the incentivize program had all the wrong incentivizes and ultimately hurt the business. My old boss got fired for pointing this out because the truth was the whole of Upper management was milking the company dry.
The United States being reliant on her enemies for necessities is just an incredibly dumbass idea.
Monopolies, Collusion and price fixing is the economic systems we currently have and that’s not true capitalism. True capitalism is a FREE MARKET of which we have not had for a very long time in many, many respects. My point is that true capitalism which I really believe in need to have regulation and guardrails to be effective and thrive. We must try to find consensus with and for our way of life and then stand up for ourselves with ourselves.
To be fair, true capitalism would mean no SS, no Medicare, no unions, no insurance, etc. Everyone would save up the money they earned to pay for all of these things.
@@DistrustHumanzI don’t particular agree with that but okey . True capitalism really means “Free Market Competition” this is the primary basis of capitalism and we don’t currently have that please refer to my first post which outlines this. Furthermore the people pay into SS, Medicare etc into a collective government systems which is also needed to have true capitalism as centralization in some capacity allows us to regulate monopolies, police, military etc. so capitalism is more focused on the private sector but also need the public sectors for regulation long story made very short.
@@DistrustHumanzBut also to be fair I don’t completely disagree with you. However considering the balance of societies wealth is so lopsided this social systems play a vital role in civil stability we can agree on that I’m sure. Furthermore, if monopolies weren’t allowed to thrive and we were closer to a true capitalistic society then these social system could theoretically contract somewhat so I agree. Lastly some of capitalism is only theory and ideal with no real proper application. Let’s not also forget these so called pro free market companies also use taxpayer funding and that’s a whole other can of worms.
@@JW-dc8hkcapitalism is just power distributed by capital. It will always result in capital forming governments to protect the interests of capital holders. Which creates corruption at behest of the capital holders, monopolization in the interest of the primary capital holders, assassinations of perceived threats to the capital holders, exploitation of those lacking capital, and so on. There is no incentive to self-regulate capitalism, because at its roots it serves the interests of the majority holders of capital, who live beyond your reach and have absolutely no concern for your prosperity because they just ultimately want your power (capital) too. Then when the vehicle for their generation of capital and its security (a state) crashes and burns, they can and do just move their capital into other markets to subvert and overtake their vehicle for the generation of capital (the state). Regulate away… laws mean nothing without the mechanisms to enforce them, and the oligarchs understand that, and it’s why they are untouchable, and their companies are never held accountable by government regulators.
I think it’s cope to think capitalism can be regulated into a system that serves the working class, because if it did then we would see various versions of market socialism where capitalism was effectively regulated towards benefitting the working class almost exclusively, evolving capitalism to its next socioeconomic form. But capitalism actively opposes socioeconomic evolution, because again at the root of it is capital holders with no interest in a more equitable distribution of power within the states they lord over.
All these words and talking without mentioning the MASSIVE economic impact of the lockdown themselves.