Supply Disruptions and the U.S. Economy

"The COVID-19 pandemic has disrupted the production of many goods and services. Although those disruptions have waned since spring 2020, some continue to constrain production, exacerbating inflationary pressures. The Biden Administration has announced a series of initiatives to address supply chain disruptions, which are detailed in CRS Insight IN11927. This Insight discusses some of the factors contributing to supply disruptions and policy considerations surrounding this issue

Supply Disruptions

Recently, supply has been constrained by disruptions to global supply chains, labor shortages, temporary business disruptions linked to COVID-19 outbreaks, and commodity shortages linked to the 2022 Russian invasion of Ukraine. Pandemic-related shutdowns and production delays worldwide have caused a chain reaction of delays in the availability of products across a wide range of industries. Product availability has been disrupted for both final products sought by consumers and inputs used by American producers. Earlier shutdowns created backlogs that have taken months to unwind.

The labor force participation rate has been unusually low throughout the pandemic, which has resulted in companies being unable to fill job openings. Periodic surges in COVID-19 cases have also caused labor shortages at times that have hobbled production. For example, the Omicron surge led to employee absences that caused new supply disruptions in the winter of 2021-2022, including to flights and passenger rail. The U.S. Bureau of Labor Statistics reported that 3.6 million employed individuals were unable to work at some point in January 2022 (when Omicron peaked) because of illness—more than twice as high as the pre-pandemic high. In the same month, 6 million individuals were unable to work because their employers closed or lost business due to COVID-19. Absences and loss of business because of illness have been consistently above average throughout the pandemic.

Supply chains are global, and a product can pass through several countries before reaching the United States. A delay or disruption in any one of those countries can therefore cause supply problems for theUnited States. Different countries have experienced different kinds of production disruptions, including lockdowns and other work restrictions, and at different times compared to the United States. The Federal Reserve Bank of New York publishes an index measuring how much pressure there is in global supply chains. For much of the pandemic, supply chains have faced significantly higher pressures than at any time in recent decades.."
Supply Disruptions 

The Importance of Data Occupations in the U.S. Economy

"The growing importance of data in the economy is hard to dispute. But what does thismean for workers and jobs? A lot, as it turns out: higher paying (over $40/hour) , faster growing jobs.
In this report we identify occupations where data analysis and processing are central to the work performed and measure the size of employment and earnings in these occupations , as well as in the industries that have the highest concentration of these data occupations..."
Data occupations

Effects of a Carbon Tax on the Economy and the Environment

"Lawmakers could increase federal revenues and encourage reductions in emissions of carbon dioxide (CO2) by establishing a carbon tax, which would either tax those emissions directly or tax fuels that release CO2 when they are burned (fossil fuels, such as coal, oil, and natural gas).
Emissions of CO2 and other greenhouse gases accumulate in the atmosphere and contribute to climate change—a long-term and potentially very costly global problem..."
https://www.cbo.gov/sites/default/files/cbofiles/attachments/44223_Carbon_0.pdf

America's Economy App

A mobile app for use on the U.S. Census Bureau's web site highlighting economic data.

White House Forum on Women and the Economy

"Today, at the White House Forum on Women and the Economy, the President will discuss the importance of restoring the economic security for the middle class and creating an economy that’s built to last for America’s women. The President believes we must build an economy where everyone gets a fair shot, everyone pays their fair share, and everyone plays by the same set of rules. As part of today’s Forum the White House released a new report entitled Keeping America’s Women Moving Forward, The Key to an Economy Built to Last, which examines the ways in which the Administration has worked to ensure women’s economic security through all stages of life – from young women furthering their education and beginning their careers, to working women who create jobs and provide for their families, to seniors in retirement or getting ready for retirement. View the report HERE..."

Factors Underlying the Decline in Manufacturing Employment Since 2000
"...The steep decline in manufacturing employment since 2000 is associated with two interrelated developments: rapid gains in productivity (output per hour) in U.S.
manufacturing and increased competition from foreign producers. Competition from overseas helped spur U.S. firms to boost productivity, but that competition
has also dampened demand for goods produced in the United States, despite domestic manufacturers’ efforts to reduce costs through productivity enhancements."

Fact Sheet: Taking Responsible Action to Help Homeowners and the Economy
"Today, President Bush delivered remarks at the Economic Club in New York and discussed the appropriate role the government must play to strengthen the economy and protect our communities. The U.S. economy is structurally strong, but we are experiencing a period of economic challenge. Concern over the housing market has shaken the broader economy, but the President believes the government can respect the principles of the free market, while also taking sensible, focused action to help responsible homeowners weather a rough patch."