Is It Time to Rethink Globalized Supply Chains?
Definitely time to rethink globalized supply chains. The centralization inherent to this obsession with efficiency is simply not resilient to disruptions. We learned to build redundancy into our food production to handle disruptions like, centuries ago, which is (partly) why we pay farmers to produce more food than we technically need. We don&#x27;t invest much to keep manufacturing of some other critical goods domestic.<p>I&#x27;m frankly astounded that exclusively outsourced supply chains were ever a serious consideration. Yes they&#x27;re more efficient, but efficiency isn&#x27;t the only consideration. Imagine if someone seriously came forward to suggest China should also produce all of our food. It&#x27;s nuts.<p>I blame the continued financialization of our economy which leads to an absurd obsession with efficiency above all other considerations. It&#x27;s yet one more example of borrowing against the future that has led to many of the recent economic crises.<p>Edit: we regulate risk in financial sectors, like the debt ratio, and supply chain resiliency is simply another risk assessment. I think more comprehensive legislation surrounding corporate risk taking will ultimately be needed.