Businesses struggle to fix supply chains disrupted by virus


You mentioned really supply chain so many U. S. companies by intermediate goods as part of creating their final product so supply chain issues we don't have any real evidence on that yet and I'd say the last channel was really financial markets they who which which enjoys themselves can be a channel for the transmission of of risk off behavior which gonna which can affect economic behavior so we'll be looking at all of that it's way too early to say whether what that what it will amount to which is going to have to wait to see if there's not isn't there's no way to be kind of confident that anyone's assessment in their range of assessments based on based on what you just said I think I know your answer but I'll ask it anyway the report all it mentioned a number of reasons one is the the terrorist between our country and in China and the impact that it's had had on China and in subsidiary companies but also automation in the increase in automation that does that sound consistent with with relocating the supply chains well that's yes separate from the the questions about the virus there clearly has been on the part of American companies a lot of activity in in moving to other jurisdictions like Vietnam in particular gets mentioned quite a bit I saw a report last week a number of other countries have have had American business moving their production activities out of China to other two two other locations and that that's certainly has happened including the United States yes thank you or relocating back to the United States I guess along those same lines I I represent part of Memphis and West Tennessee in Memphis that's not my district was the announcement Amazon made two or three weeks ago that they are locating a new facility there thousand jobs in incidently had questions on the minimum wage they're going to start their wages at least fifteen dollars an hour plus benefits they talked about these new jobs in in combination with automation automation in terms of I came in in shipping you've talked about your concerns of automation and the effect that will have on one employment in the future can you see the two co existing versus like with the Samsung plant well over the last two and a half centuries we've seen advancing technology and there's been a concern that it would replace human labor and that has happened but what has happened though is it is made human labor over time more productive so there's displacement of current workers but over time advancing technology has led to rising incomes and the but that doesn't mean there won't be disruptions and a lot of pain for people in the short term but none the less the process over time has led to rising

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