JPMorgan's Dimon says supply chain hiccups will soon ease, points to extraordinary consumer demand

[Klaralven]

While some experts believe some pain will continue through 2023, Dimon has a rosier view. He said Monday that he believes the economy is set up for growth over the next few years. Part of that is because of the strength of the consumer, he said.

“Keep in mind, the consumer’s buying other stuff,” Dimon said. “They can’t buy cars, they’re buying home improvement; they can’t travel internationally, they travel domestically. The spend level is very high.”

“Because of the strength of the consumer, which is extraordinary, they’re spending 20% more than they were spending pre-Covid,” he added. “And companies are in great shape, they can continue to spend at these levels for a long time.”

Supply chain disruptions may end up merely elongating the recovery rather than derailing it, Dimon said.

https://www.cnbc.com/2021/10/11/jpmorgans-dimon-says-supply-chain-hiccups-will-soon-ease-points-to-extraordinary-consumer-demand.html

[Javaman]

1. just how will supply chains "ease" with greater demand? nt

[Klaralven]

2. Suppliers will build capacity, but that takes a while

Also, suppliers will change the source of their input, or possibly become more vertically integrated to shorten supply chains and cut out intermediaries.

I'm surprised that Amazon hasn't built a port.

[Deminpenn]

3. Proves Keysian economic policy works

The ARA and the other pandemic related bills put money in the hands of people who needed it and spent it. Just like proponents of fiscal policy (i.e., government spending) have always said would happen. The demand also helped raise wages and benefits, lifting all boats as it were.