Does the US government have any planning in place to ensure there's no shortages of food, fuel, steel and...
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Does the US government have any planning in place to ensure there's no shortages of food, fuel, steel and other commodities?
What is the purpose of food stamps, WIC, SNAP, and other related federal programs?Have any of the “We the People” petitions ever resulted in policy changes?Why don't we pay food stamps and unemployment benefits indefinitely to stimulate the economy?Do any countries have Country of Origin Food Labeling laws?What is “lobbying” and how does it get used in Canada to change government policy?Does the U.S. have any remaining economic or diplomatic ties with North Korea?Why does the USDA handle the food pyramid?What major flaws does this particular Universal Basic Income model have, if any?Does the DEA have authority to prohibit any substance?Does tax amnesty have any benefit except for potentially uncovering undeclared wealth?
Every time we go shopping store shelves are full of food, gas stations are stocked up on gas, car dealerships have no shortage of cars, etc. But who is ensuring that all of the complex processes required to maintain this state of affairs go smoothly? Is it just the free market doing its thing without any coordination? Or is there an office somewhere in DC where a big committee draws up a plan to ensure that no shortages take place in the foreseeable future?
united-states economy policy
|
show 12 more comments
Every time we go shopping store shelves are full of food, gas stations are stocked up on gas, car dealerships have no shortage of cars, etc. But who is ensuring that all of the complex processes required to maintain this state of affairs go smoothly? Is it just the free market doing its thing without any coordination? Or is there an office somewhere in DC where a big committee draws up a plan to ensure that no shortages take place in the foreseeable future?
united-states economy policy
5
The USA doesn't really have those aspects of a Planned Economy that would allow continued security of supply
– Dave Gremlin
22 hours ago
10
@Dave Gremlin The USA has continued security of supply precisely because it doesn't have a planned economy.
– Joe
21 hours ago
7
What?!? If planned economies worked the Soviet Union wouldn't have collapsed; and China wouldn't have abandoned it; and Venezuela would be working out just fine. Imagine the difficulties of having enough Turkeys available once a year throughout the country. Even with today's technology a central office couldn't coordinate that.
– Mayo
18 hours ago
6
"Is it just the free market doing its thing without any coordination?" Believe me, there is a whole lot of coordination going on in the free market. Just not the centrally-planned kind that does not work for all the reasons Hayek, von Mises and other free market theoreticians have expounded over decades. I personally am a tiny cog in that "coordination" process, forecasting retail demands so retailers know how much product to buy so the shelves are full (but not too full).
– Stephan Kolassa
18 hours ago
5
@DaveGremlin While we might like to think that, it really is not true. Agriculture is heavily regulated and subsidized to guarantee continuity of supply.
– emory
17 hours ago
|
show 12 more comments
Every time we go shopping store shelves are full of food, gas stations are stocked up on gas, car dealerships have no shortage of cars, etc. But who is ensuring that all of the complex processes required to maintain this state of affairs go smoothly? Is it just the free market doing its thing without any coordination? Or is there an office somewhere in DC where a big committee draws up a plan to ensure that no shortages take place in the foreseeable future?
united-states economy policy
Every time we go shopping store shelves are full of food, gas stations are stocked up on gas, car dealerships have no shortage of cars, etc. But who is ensuring that all of the complex processes required to maintain this state of affairs go smoothly? Is it just the free market doing its thing without any coordination? Or is there an office somewhere in DC where a big committee draws up a plan to ensure that no shortages take place in the foreseeable future?
united-states economy policy
united-states economy policy
edited yesterday
JJJ
4,54022144
4,54022144
asked yesterday
JonathanReezJonathanReez
13.8k1579158
13.8k1579158
5
The USA doesn't really have those aspects of a Planned Economy that would allow continued security of supply
– Dave Gremlin
22 hours ago
10
@Dave Gremlin The USA has continued security of supply precisely because it doesn't have a planned economy.
– Joe
21 hours ago
7
What?!? If planned economies worked the Soviet Union wouldn't have collapsed; and China wouldn't have abandoned it; and Venezuela would be working out just fine. Imagine the difficulties of having enough Turkeys available once a year throughout the country. Even with today's technology a central office couldn't coordinate that.
– Mayo
18 hours ago
6
"Is it just the free market doing its thing without any coordination?" Believe me, there is a whole lot of coordination going on in the free market. Just not the centrally-planned kind that does not work for all the reasons Hayek, von Mises and other free market theoreticians have expounded over decades. I personally am a tiny cog in that "coordination" process, forecasting retail demands so retailers know how much product to buy so the shelves are full (but not too full).
– Stephan Kolassa
18 hours ago
5
@DaveGremlin While we might like to think that, it really is not true. Agriculture is heavily regulated and subsidized to guarantee continuity of supply.
– emory
17 hours ago
|
show 12 more comments
5
The USA doesn't really have those aspects of a Planned Economy that would allow continued security of supply
– Dave Gremlin
22 hours ago
10
@Dave Gremlin The USA has continued security of supply precisely because it doesn't have a planned economy.
– Joe
21 hours ago
7
What?!? If planned economies worked the Soviet Union wouldn't have collapsed; and China wouldn't have abandoned it; and Venezuela would be working out just fine. Imagine the difficulties of having enough Turkeys available once a year throughout the country. Even with today's technology a central office couldn't coordinate that.
– Mayo
18 hours ago
6
"Is it just the free market doing its thing without any coordination?" Believe me, there is a whole lot of coordination going on in the free market. Just not the centrally-planned kind that does not work for all the reasons Hayek, von Mises and other free market theoreticians have expounded over decades. I personally am a tiny cog in that "coordination" process, forecasting retail demands so retailers know how much product to buy so the shelves are full (but not too full).
– Stephan Kolassa
18 hours ago
5
@DaveGremlin While we might like to think that, it really is not true. Agriculture is heavily regulated and subsidized to guarantee continuity of supply.
– emory
17 hours ago
5
5
The USA doesn't really have those aspects of a Planned Economy that would allow continued security of supply
– Dave Gremlin
22 hours ago
The USA doesn't really have those aspects of a Planned Economy that would allow continued security of supply
– Dave Gremlin
22 hours ago
10
10
@Dave Gremlin The USA has continued security of supply precisely because it doesn't have a planned economy.
– Joe
21 hours ago
@Dave Gremlin The USA has continued security of supply precisely because it doesn't have a planned economy.
– Joe
21 hours ago
7
7
What?!? If planned economies worked the Soviet Union wouldn't have collapsed; and China wouldn't have abandoned it; and Venezuela would be working out just fine. Imagine the difficulties of having enough Turkeys available once a year throughout the country. Even with today's technology a central office couldn't coordinate that.
– Mayo
18 hours ago
What?!? If planned economies worked the Soviet Union wouldn't have collapsed; and China wouldn't have abandoned it; and Venezuela would be working out just fine. Imagine the difficulties of having enough Turkeys available once a year throughout the country. Even with today's technology a central office couldn't coordinate that.
– Mayo
18 hours ago
6
6
"Is it just the free market doing its thing without any coordination?" Believe me, there is a whole lot of coordination going on in the free market. Just not the centrally-planned kind that does not work for all the reasons Hayek, von Mises and other free market theoreticians have expounded over decades. I personally am a tiny cog in that "coordination" process, forecasting retail demands so retailers know how much product to buy so the shelves are full (but not too full).
– Stephan Kolassa
18 hours ago
"Is it just the free market doing its thing without any coordination?" Believe me, there is a whole lot of coordination going on in the free market. Just not the centrally-planned kind that does not work for all the reasons Hayek, von Mises and other free market theoreticians have expounded over decades. I personally am a tiny cog in that "coordination" process, forecasting retail demands so retailers know how much product to buy so the shelves are full (but not too full).
– Stephan Kolassa
18 hours ago
5
5
@DaveGremlin While we might like to think that, it really is not true. Agriculture is heavily regulated and subsidized to guarantee continuity of supply.
– emory
17 hours ago
@DaveGremlin While we might like to think that, it really is not true. Agriculture is heavily regulated and subsidized to guarantee continuity of supply.
– emory
17 hours ago
|
show 12 more comments
4 Answers
4
active
oldest
votes
Although the United States generally avoids economic planning (and even industrial policy), this is not to say the government leaves everything to the market. I don't have much expertise on this topic so I'm sure the following list will be incomplete. But here are some examples of ways that the federal government intervenes to ensure the continued availability of basic consumer products.
Fuel and energy: 1) The Strategic Petroleum Reserve is an emergency supply of crude oil maintained by the federal government. This system was created as a response to shortages in the 1970s. It currently has about 30 days supply. 2) The Federal Energy Regulatory Commission oversees the development of energy transmission infrastructure like pipelines and the electrical grid.
Food: 1) The United States government has intermittently held strategic grain reserves. However since the 1970s at least, these seem to have been for foreign aid, not domestic consumption. 2) The USDA's National Agricultural Statistics Service closely monitors the national food supply month by month. 3) Other parts of the USDA provide subsidies, technical assistance, and other forms of support to farmers which help ensure an adequate food supply.
General: The Federal Reserve tracks things like price inflation for durable goods, which may influence monetary policy and other measures.
Finally I will note that during the Great Depression and especially during the two World Wars, federal intervention in the markets for basic commodities was far more active. See for example the War Production Board.
15
Despite food reserves are "for foreign aid, not domestic consumption" I would bet that in case of a huge catastrophe, they will be used for domestic consumption.
– vsz
yesterday
1
It should be noted that most of these efforts are intended for crises, and that they don't typically affect what happens day to day. I can't actually remember when the last time the strategic oil reserve was used, but I do remember debates when it was reduced (it affected Al Gore's presidential campaign).
– Joe
21 hours ago
3
Nearly every country has strategic oil reserves. Germany actually used it last summer as the river Rhine had to little water to transport oil in the south of the country. This led to a cost increase of around 50%. To stop this trend and guarantee supply for the industry in the south, the government used the oil reserves.
– miep
21 hours ago
3
@Joe I think I remember that during $4 gallon gas, around the later half of President Bush's 2nd term, there was a symbolic release of fuel from the strategic reserves. There was fear in the news that the US was in danger and a tiny, temporary dip in gasoline prices, what really lowered prices was allowing fracking and drilling.
– Frank Cedeno
20 hours ago
1
You might add that the Energy Information Administration (of the Department of Energy) collects and publishes information so that the market gets info on where and when to increase supply and refineries know where they might want to adjust demand.
– H2ONaCl
9 hours ago
|
show 1 more comment
To piggyback on the wonderful examples of US Reserves for crises in another answer, the short answer to your question is, roughly, no. More specifically, this question:
But who is ensuring that all of the complex processes required to maintain this state of affairs go smoothly?
It is, in fact, the free market that makes sure all these complex processes go smoothly. There isn't any government body coordinating avocado farmers in Central America with distributors in Florida to purchase those avocados and get them to a Whole Foods near you.[1]
As described in another answer [linked above], there are reserves set aside in case of major crisis to ensure a shortage doesn't spiral out of control, but they're for just that - crises. With the exception of providing subsidies or tax breaks to incentivize production of some goods (corn subsidies, renewable energy tax breaks), the US government doesn't take an active role in controlling the market.
The government notably doesn't take action to help with general "shortages" - there's no backup of Romaine for when an E. Coli outbreak occurs, they don't manage the supply of your favorite cola to make sure there's no shortage, they don't direct the supply chain for the new iPhone to guarantee they don't run out. All of that supply chain management is done by the individual companies - sellers (due to sales numbers, population counts, research, etc) think they need [some amount] of the product(s) they're selling, they buy that much from a supplier (who is thus a seller themselves, and may need research on how many to buy/produce), and so on.
1: This is purely for example, I'm not sure if there's any distributor in Florida, or if the maybe-exists distributor sells to Whole Foods.
New contributor
1
To add another level to your last paragraph, one big reason you don't need central planning is that the market has competition and redundancies. Companies have a large incentive to keep their own supply chain flowing smoothly (supply problems mean you can lose a lot of business). Even if someone messes up and Cola Company A's supply chain completely collapses, you can still buy cola from Companies B and C. There's rarely a single point of failure any more, so you rarely see critical shortages outside of unforseeable crises.
– bta
8 hours ago
add a comment |
U.S.-Iran Oil Consortium
In August 1953, the Iranian military, with the help of British and U.S. intelligence agencies, overthrows Iranian Prime Minister Mohammad Mossadeq—who nationalized the country's oil industry two years earlier. The U.S. government works with U.S. oil majors and the Iranian government—now run by the Shah—to bring Iranian oil back online following a British embargo of oil shipments. Iran's oil remains nationalized, but in October 1954 the government agrees to a consortium of mainly U.S. companies to manage Iran's oil industry.
Suez Canal Crisis
In a 1957 speech to Congress, Eisenhower says the Middle East would be a prize for international communism and asks Congress to provide economic and military support for any nation or groups of nations in the region with "governments manifestly dedicated to the preservation of independence and resistance to subversion."
Iran-Iraq War
The Reagan administration issues a national security directive in 1983 to increase the U.S. military presence in the Persian Gulf to help protect the oil facilities and shipments to allies. The war lasts eight years.
https://www.cfr.org/timeline/oil-dependence-and-us-foreign-policy
Carter Doctrine
The Carter Doctrine was a policy proclaimed by President of the United States Jimmy Carter in his State of the Union Address on January 23, 1980, which stated that the United States would use military force, if necessary, to defend its national interests in the Persian Gulf.
There are other examples at the first link, and that's just oil. The US has hundreds of military bases around the world to control strategic minerals and other commodities.
15
This does not answer the question.
– Stephen
yesterday
2
Many other countries, e.g. Germany have no shortages whatsoever either, despite having no military bases around the world.
– Scrontch
23 hours ago
3
Oddly, enough, these military bases and foreign policies did nothing to change oil prices during several times where it would have been useful to do so, like during the Carter administration and the Iraq War.
– Joe
22 hours ago
4
To expand on what @Stephen says, if your intention is to say that US military presence is to ensure that "the spice must flow", then please explicitly state that in your answer rather than leaving it to implication.
– Jared Smith
19 hours ago
add a comment |
"Any planning"? Then the short answer is Yes. Planning doesn't have to be a wholesale Soviet-style command planning.
Contrary to popular belief and some comments above, free market is remarkably good at alleviating short-to-medium term crises. The 'Soviet'-style response to anything unexpected is, well, you have a shortrage -- until the next five-year plan kicks in (at best). In free market, you may have exorbitant prices, but at least some way of getting the stuff. And then alternatives will spring up, the higher the prices, the quicker.
But like with many natural processes (e.g. evolution), strategic thinking doesn't happen automatically. If we have a goal and a forecast power, we can do better. I would divide the measures into three categories:
- Stockpiling of the most critical resources. The US Strategic Petroleum Reserve has already been mentioned as an example. But despite the name, this is not so strategic in reality -- rather a patch to buy time.
- Accumulating financial resources to be able to get the required resoruces even at the speculative crisis prices.
- Fostering and diversifying industries that provide essential resources. (Such industries don't necessarily have to be local; on the international scale, this may involve diplomacy and, by extension, even war). Take the recent example with the updated list of critical minerals.
add a comment |
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4 Answers
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Although the United States generally avoids economic planning (and even industrial policy), this is not to say the government leaves everything to the market. I don't have much expertise on this topic so I'm sure the following list will be incomplete. But here are some examples of ways that the federal government intervenes to ensure the continued availability of basic consumer products.
Fuel and energy: 1) The Strategic Petroleum Reserve is an emergency supply of crude oil maintained by the federal government. This system was created as a response to shortages in the 1970s. It currently has about 30 days supply. 2) The Federal Energy Regulatory Commission oversees the development of energy transmission infrastructure like pipelines and the electrical grid.
Food: 1) The United States government has intermittently held strategic grain reserves. However since the 1970s at least, these seem to have been for foreign aid, not domestic consumption. 2) The USDA's National Agricultural Statistics Service closely monitors the national food supply month by month. 3) Other parts of the USDA provide subsidies, technical assistance, and other forms of support to farmers which help ensure an adequate food supply.
General: The Federal Reserve tracks things like price inflation for durable goods, which may influence monetary policy and other measures.
Finally I will note that during the Great Depression and especially during the two World Wars, federal intervention in the markets for basic commodities was far more active. See for example the War Production Board.
15
Despite food reserves are "for foreign aid, not domestic consumption" I would bet that in case of a huge catastrophe, they will be used for domestic consumption.
– vsz
yesterday
1
It should be noted that most of these efforts are intended for crises, and that they don't typically affect what happens day to day. I can't actually remember when the last time the strategic oil reserve was used, but I do remember debates when it was reduced (it affected Al Gore's presidential campaign).
– Joe
21 hours ago
3
Nearly every country has strategic oil reserves. Germany actually used it last summer as the river Rhine had to little water to transport oil in the south of the country. This led to a cost increase of around 50%. To stop this trend and guarantee supply for the industry in the south, the government used the oil reserves.
– miep
21 hours ago
3
@Joe I think I remember that during $4 gallon gas, around the later half of President Bush's 2nd term, there was a symbolic release of fuel from the strategic reserves. There was fear in the news that the US was in danger and a tiny, temporary dip in gasoline prices, what really lowered prices was allowing fracking and drilling.
– Frank Cedeno
20 hours ago
1
You might add that the Energy Information Administration (of the Department of Energy) collects and publishes information so that the market gets info on where and when to increase supply and refineries know where they might want to adjust demand.
– H2ONaCl
9 hours ago
|
show 1 more comment
Although the United States generally avoids economic planning (and even industrial policy), this is not to say the government leaves everything to the market. I don't have much expertise on this topic so I'm sure the following list will be incomplete. But here are some examples of ways that the federal government intervenes to ensure the continued availability of basic consumer products.
Fuel and energy: 1) The Strategic Petroleum Reserve is an emergency supply of crude oil maintained by the federal government. This system was created as a response to shortages in the 1970s. It currently has about 30 days supply. 2) The Federal Energy Regulatory Commission oversees the development of energy transmission infrastructure like pipelines and the electrical grid.
Food: 1) The United States government has intermittently held strategic grain reserves. However since the 1970s at least, these seem to have been for foreign aid, not domestic consumption. 2) The USDA's National Agricultural Statistics Service closely monitors the national food supply month by month. 3) Other parts of the USDA provide subsidies, technical assistance, and other forms of support to farmers which help ensure an adequate food supply.
General: The Federal Reserve tracks things like price inflation for durable goods, which may influence monetary policy and other measures.
Finally I will note that during the Great Depression and especially during the two World Wars, federal intervention in the markets for basic commodities was far more active. See for example the War Production Board.
15
Despite food reserves are "for foreign aid, not domestic consumption" I would bet that in case of a huge catastrophe, they will be used for domestic consumption.
– vsz
yesterday
1
It should be noted that most of these efforts are intended for crises, and that they don't typically affect what happens day to day. I can't actually remember when the last time the strategic oil reserve was used, but I do remember debates when it was reduced (it affected Al Gore's presidential campaign).
– Joe
21 hours ago
3
Nearly every country has strategic oil reserves. Germany actually used it last summer as the river Rhine had to little water to transport oil in the south of the country. This led to a cost increase of around 50%. To stop this trend and guarantee supply for the industry in the south, the government used the oil reserves.
– miep
21 hours ago
3
@Joe I think I remember that during $4 gallon gas, around the later half of President Bush's 2nd term, there was a symbolic release of fuel from the strategic reserves. There was fear in the news that the US was in danger and a tiny, temporary dip in gasoline prices, what really lowered prices was allowing fracking and drilling.
– Frank Cedeno
20 hours ago
1
You might add that the Energy Information Administration (of the Department of Energy) collects and publishes information so that the market gets info on where and when to increase supply and refineries know where they might want to adjust demand.
– H2ONaCl
9 hours ago
|
show 1 more comment
Although the United States generally avoids economic planning (and even industrial policy), this is not to say the government leaves everything to the market. I don't have much expertise on this topic so I'm sure the following list will be incomplete. But here are some examples of ways that the federal government intervenes to ensure the continued availability of basic consumer products.
Fuel and energy: 1) The Strategic Petroleum Reserve is an emergency supply of crude oil maintained by the federal government. This system was created as a response to shortages in the 1970s. It currently has about 30 days supply. 2) The Federal Energy Regulatory Commission oversees the development of energy transmission infrastructure like pipelines and the electrical grid.
Food: 1) The United States government has intermittently held strategic grain reserves. However since the 1970s at least, these seem to have been for foreign aid, not domestic consumption. 2) The USDA's National Agricultural Statistics Service closely monitors the national food supply month by month. 3) Other parts of the USDA provide subsidies, technical assistance, and other forms of support to farmers which help ensure an adequate food supply.
General: The Federal Reserve tracks things like price inflation for durable goods, which may influence monetary policy and other measures.
Finally I will note that during the Great Depression and especially during the two World Wars, federal intervention in the markets for basic commodities was far more active. See for example the War Production Board.
Although the United States generally avoids economic planning (and even industrial policy), this is not to say the government leaves everything to the market. I don't have much expertise on this topic so I'm sure the following list will be incomplete. But here are some examples of ways that the federal government intervenes to ensure the continued availability of basic consumer products.
Fuel and energy: 1) The Strategic Petroleum Reserve is an emergency supply of crude oil maintained by the federal government. This system was created as a response to shortages in the 1970s. It currently has about 30 days supply. 2) The Federal Energy Regulatory Commission oversees the development of energy transmission infrastructure like pipelines and the electrical grid.
Food: 1) The United States government has intermittently held strategic grain reserves. However since the 1970s at least, these seem to have been for foreign aid, not domestic consumption. 2) The USDA's National Agricultural Statistics Service closely monitors the national food supply month by month. 3) Other parts of the USDA provide subsidies, technical assistance, and other forms of support to farmers which help ensure an adequate food supply.
General: The Federal Reserve tracks things like price inflation for durable goods, which may influence monetary policy and other measures.
Finally I will note that during the Great Depression and especially during the two World Wars, federal intervention in the markets for basic commodities was far more active. See for example the War Production Board.
edited yesterday
Brythan
68.4k8142233
68.4k8142233
answered yesterday
Brian ZBrian Z
2,598816
2,598816
15
Despite food reserves are "for foreign aid, not domestic consumption" I would bet that in case of a huge catastrophe, they will be used for domestic consumption.
– vsz
yesterday
1
It should be noted that most of these efforts are intended for crises, and that they don't typically affect what happens day to day. I can't actually remember when the last time the strategic oil reserve was used, but I do remember debates when it was reduced (it affected Al Gore's presidential campaign).
– Joe
21 hours ago
3
Nearly every country has strategic oil reserves. Germany actually used it last summer as the river Rhine had to little water to transport oil in the south of the country. This led to a cost increase of around 50%. To stop this trend and guarantee supply for the industry in the south, the government used the oil reserves.
– miep
21 hours ago
3
@Joe I think I remember that during $4 gallon gas, around the later half of President Bush's 2nd term, there was a symbolic release of fuel from the strategic reserves. There was fear in the news that the US was in danger and a tiny, temporary dip in gasoline prices, what really lowered prices was allowing fracking and drilling.
– Frank Cedeno
20 hours ago
1
You might add that the Energy Information Administration (of the Department of Energy) collects and publishes information so that the market gets info on where and when to increase supply and refineries know where they might want to adjust demand.
– H2ONaCl
9 hours ago
|
show 1 more comment
15
Despite food reserves are "for foreign aid, not domestic consumption" I would bet that in case of a huge catastrophe, they will be used for domestic consumption.
– vsz
yesterday
1
It should be noted that most of these efforts are intended for crises, and that they don't typically affect what happens day to day. I can't actually remember when the last time the strategic oil reserve was used, but I do remember debates when it was reduced (it affected Al Gore's presidential campaign).
– Joe
21 hours ago
3
Nearly every country has strategic oil reserves. Germany actually used it last summer as the river Rhine had to little water to transport oil in the south of the country. This led to a cost increase of around 50%. To stop this trend and guarantee supply for the industry in the south, the government used the oil reserves.
– miep
21 hours ago
3
@Joe I think I remember that during $4 gallon gas, around the later half of President Bush's 2nd term, there was a symbolic release of fuel from the strategic reserves. There was fear in the news that the US was in danger and a tiny, temporary dip in gasoline prices, what really lowered prices was allowing fracking and drilling.
– Frank Cedeno
20 hours ago
1
You might add that the Energy Information Administration (of the Department of Energy) collects and publishes information so that the market gets info on where and when to increase supply and refineries know where they might want to adjust demand.
– H2ONaCl
9 hours ago
15
15
Despite food reserves are "for foreign aid, not domestic consumption" I would bet that in case of a huge catastrophe, they will be used for domestic consumption.
– vsz
yesterday
Despite food reserves are "for foreign aid, not domestic consumption" I would bet that in case of a huge catastrophe, they will be used for domestic consumption.
– vsz
yesterday
1
1
It should be noted that most of these efforts are intended for crises, and that they don't typically affect what happens day to day. I can't actually remember when the last time the strategic oil reserve was used, but I do remember debates when it was reduced (it affected Al Gore's presidential campaign).
– Joe
21 hours ago
It should be noted that most of these efforts are intended for crises, and that they don't typically affect what happens day to day. I can't actually remember when the last time the strategic oil reserve was used, but I do remember debates when it was reduced (it affected Al Gore's presidential campaign).
– Joe
21 hours ago
3
3
Nearly every country has strategic oil reserves. Germany actually used it last summer as the river Rhine had to little water to transport oil in the south of the country. This led to a cost increase of around 50%. To stop this trend and guarantee supply for the industry in the south, the government used the oil reserves.
– miep
21 hours ago
Nearly every country has strategic oil reserves. Germany actually used it last summer as the river Rhine had to little water to transport oil in the south of the country. This led to a cost increase of around 50%. To stop this trend and guarantee supply for the industry in the south, the government used the oil reserves.
– miep
21 hours ago
3
3
@Joe I think I remember that during $4 gallon gas, around the later half of President Bush's 2nd term, there was a symbolic release of fuel from the strategic reserves. There was fear in the news that the US was in danger and a tiny, temporary dip in gasoline prices, what really lowered prices was allowing fracking and drilling.
– Frank Cedeno
20 hours ago
@Joe I think I remember that during $4 gallon gas, around the later half of President Bush's 2nd term, there was a symbolic release of fuel from the strategic reserves. There was fear in the news that the US was in danger and a tiny, temporary dip in gasoline prices, what really lowered prices was allowing fracking and drilling.
– Frank Cedeno
20 hours ago
1
1
You might add that the Energy Information Administration (of the Department of Energy) collects and publishes information so that the market gets info on where and when to increase supply and refineries know where they might want to adjust demand.
– H2ONaCl
9 hours ago
You might add that the Energy Information Administration (of the Department of Energy) collects and publishes information so that the market gets info on where and when to increase supply and refineries know where they might want to adjust demand.
– H2ONaCl
9 hours ago
|
show 1 more comment
To piggyback on the wonderful examples of US Reserves for crises in another answer, the short answer to your question is, roughly, no. More specifically, this question:
But who is ensuring that all of the complex processes required to maintain this state of affairs go smoothly?
It is, in fact, the free market that makes sure all these complex processes go smoothly. There isn't any government body coordinating avocado farmers in Central America with distributors in Florida to purchase those avocados and get them to a Whole Foods near you.[1]
As described in another answer [linked above], there are reserves set aside in case of major crisis to ensure a shortage doesn't spiral out of control, but they're for just that - crises. With the exception of providing subsidies or tax breaks to incentivize production of some goods (corn subsidies, renewable energy tax breaks), the US government doesn't take an active role in controlling the market.
The government notably doesn't take action to help with general "shortages" - there's no backup of Romaine for when an E. Coli outbreak occurs, they don't manage the supply of your favorite cola to make sure there's no shortage, they don't direct the supply chain for the new iPhone to guarantee they don't run out. All of that supply chain management is done by the individual companies - sellers (due to sales numbers, population counts, research, etc) think they need [some amount] of the product(s) they're selling, they buy that much from a supplier (who is thus a seller themselves, and may need research on how many to buy/produce), and so on.
1: This is purely for example, I'm not sure if there's any distributor in Florida, or if the maybe-exists distributor sells to Whole Foods.
New contributor
1
To add another level to your last paragraph, one big reason you don't need central planning is that the market has competition and redundancies. Companies have a large incentive to keep their own supply chain flowing smoothly (supply problems mean you can lose a lot of business). Even if someone messes up and Cola Company A's supply chain completely collapses, you can still buy cola from Companies B and C. There's rarely a single point of failure any more, so you rarely see critical shortages outside of unforseeable crises.
– bta
8 hours ago
add a comment |
To piggyback on the wonderful examples of US Reserves for crises in another answer, the short answer to your question is, roughly, no. More specifically, this question:
But who is ensuring that all of the complex processes required to maintain this state of affairs go smoothly?
It is, in fact, the free market that makes sure all these complex processes go smoothly. There isn't any government body coordinating avocado farmers in Central America with distributors in Florida to purchase those avocados and get them to a Whole Foods near you.[1]
As described in another answer [linked above], there are reserves set aside in case of major crisis to ensure a shortage doesn't spiral out of control, but they're for just that - crises. With the exception of providing subsidies or tax breaks to incentivize production of some goods (corn subsidies, renewable energy tax breaks), the US government doesn't take an active role in controlling the market.
The government notably doesn't take action to help with general "shortages" - there's no backup of Romaine for when an E. Coli outbreak occurs, they don't manage the supply of your favorite cola to make sure there's no shortage, they don't direct the supply chain for the new iPhone to guarantee they don't run out. All of that supply chain management is done by the individual companies - sellers (due to sales numbers, population counts, research, etc) think they need [some amount] of the product(s) they're selling, they buy that much from a supplier (who is thus a seller themselves, and may need research on how many to buy/produce), and so on.
1: This is purely for example, I'm not sure if there's any distributor in Florida, or if the maybe-exists distributor sells to Whole Foods.
New contributor
1
To add another level to your last paragraph, one big reason you don't need central planning is that the market has competition and redundancies. Companies have a large incentive to keep their own supply chain flowing smoothly (supply problems mean you can lose a lot of business). Even if someone messes up and Cola Company A's supply chain completely collapses, you can still buy cola from Companies B and C. There's rarely a single point of failure any more, so you rarely see critical shortages outside of unforseeable crises.
– bta
8 hours ago
add a comment |
To piggyback on the wonderful examples of US Reserves for crises in another answer, the short answer to your question is, roughly, no. More specifically, this question:
But who is ensuring that all of the complex processes required to maintain this state of affairs go smoothly?
It is, in fact, the free market that makes sure all these complex processes go smoothly. There isn't any government body coordinating avocado farmers in Central America with distributors in Florida to purchase those avocados and get them to a Whole Foods near you.[1]
As described in another answer [linked above], there are reserves set aside in case of major crisis to ensure a shortage doesn't spiral out of control, but they're for just that - crises. With the exception of providing subsidies or tax breaks to incentivize production of some goods (corn subsidies, renewable energy tax breaks), the US government doesn't take an active role in controlling the market.
The government notably doesn't take action to help with general "shortages" - there's no backup of Romaine for when an E. Coli outbreak occurs, they don't manage the supply of your favorite cola to make sure there's no shortage, they don't direct the supply chain for the new iPhone to guarantee they don't run out. All of that supply chain management is done by the individual companies - sellers (due to sales numbers, population counts, research, etc) think they need [some amount] of the product(s) they're selling, they buy that much from a supplier (who is thus a seller themselves, and may need research on how many to buy/produce), and so on.
1: This is purely for example, I'm not sure if there's any distributor in Florida, or if the maybe-exists distributor sells to Whole Foods.
New contributor
To piggyback on the wonderful examples of US Reserves for crises in another answer, the short answer to your question is, roughly, no. More specifically, this question:
But who is ensuring that all of the complex processes required to maintain this state of affairs go smoothly?
It is, in fact, the free market that makes sure all these complex processes go smoothly. There isn't any government body coordinating avocado farmers in Central America with distributors in Florida to purchase those avocados and get them to a Whole Foods near you.[1]
As described in another answer [linked above], there are reserves set aside in case of major crisis to ensure a shortage doesn't spiral out of control, but they're for just that - crises. With the exception of providing subsidies or tax breaks to incentivize production of some goods (corn subsidies, renewable energy tax breaks), the US government doesn't take an active role in controlling the market.
The government notably doesn't take action to help with general "shortages" - there's no backup of Romaine for when an E. Coli outbreak occurs, they don't manage the supply of your favorite cola to make sure there's no shortage, they don't direct the supply chain for the new iPhone to guarantee they don't run out. All of that supply chain management is done by the individual companies - sellers (due to sales numbers, population counts, research, etc) think they need [some amount] of the product(s) they're selling, they buy that much from a supplier (who is thus a seller themselves, and may need research on how many to buy/produce), and so on.
1: This is purely for example, I'm not sure if there's any distributor in Florida, or if the maybe-exists distributor sells to Whole Foods.
New contributor
New contributor
answered 18 hours ago
DeliothDelioth
1814
1814
New contributor
New contributor
1
To add another level to your last paragraph, one big reason you don't need central planning is that the market has competition and redundancies. Companies have a large incentive to keep their own supply chain flowing smoothly (supply problems mean you can lose a lot of business). Even if someone messes up and Cola Company A's supply chain completely collapses, you can still buy cola from Companies B and C. There's rarely a single point of failure any more, so you rarely see critical shortages outside of unforseeable crises.
– bta
8 hours ago
add a comment |
1
To add another level to your last paragraph, one big reason you don't need central planning is that the market has competition and redundancies. Companies have a large incentive to keep their own supply chain flowing smoothly (supply problems mean you can lose a lot of business). Even if someone messes up and Cola Company A's supply chain completely collapses, you can still buy cola from Companies B and C. There's rarely a single point of failure any more, so you rarely see critical shortages outside of unforseeable crises.
– bta
8 hours ago
1
1
To add another level to your last paragraph, one big reason you don't need central planning is that the market has competition and redundancies. Companies have a large incentive to keep their own supply chain flowing smoothly (supply problems mean you can lose a lot of business). Even if someone messes up and Cola Company A's supply chain completely collapses, you can still buy cola from Companies B and C. There's rarely a single point of failure any more, so you rarely see critical shortages outside of unforseeable crises.
– bta
8 hours ago
To add another level to your last paragraph, one big reason you don't need central planning is that the market has competition and redundancies. Companies have a large incentive to keep their own supply chain flowing smoothly (supply problems mean you can lose a lot of business). Even if someone messes up and Cola Company A's supply chain completely collapses, you can still buy cola from Companies B and C. There's rarely a single point of failure any more, so you rarely see critical shortages outside of unforseeable crises.
– bta
8 hours ago
add a comment |
U.S.-Iran Oil Consortium
In August 1953, the Iranian military, with the help of British and U.S. intelligence agencies, overthrows Iranian Prime Minister Mohammad Mossadeq—who nationalized the country's oil industry two years earlier. The U.S. government works with U.S. oil majors and the Iranian government—now run by the Shah—to bring Iranian oil back online following a British embargo of oil shipments. Iran's oil remains nationalized, but in October 1954 the government agrees to a consortium of mainly U.S. companies to manage Iran's oil industry.
Suez Canal Crisis
In a 1957 speech to Congress, Eisenhower says the Middle East would be a prize for international communism and asks Congress to provide economic and military support for any nation or groups of nations in the region with "governments manifestly dedicated to the preservation of independence and resistance to subversion."
Iran-Iraq War
The Reagan administration issues a national security directive in 1983 to increase the U.S. military presence in the Persian Gulf to help protect the oil facilities and shipments to allies. The war lasts eight years.
https://www.cfr.org/timeline/oil-dependence-and-us-foreign-policy
Carter Doctrine
The Carter Doctrine was a policy proclaimed by President of the United States Jimmy Carter in his State of the Union Address on January 23, 1980, which stated that the United States would use military force, if necessary, to defend its national interests in the Persian Gulf.
There are other examples at the first link, and that's just oil. The US has hundreds of military bases around the world to control strategic minerals and other commodities.
15
This does not answer the question.
– Stephen
yesterday
2
Many other countries, e.g. Germany have no shortages whatsoever either, despite having no military bases around the world.
– Scrontch
23 hours ago
3
Oddly, enough, these military bases and foreign policies did nothing to change oil prices during several times where it would have been useful to do so, like during the Carter administration and the Iraq War.
– Joe
22 hours ago
4
To expand on what @Stephen says, if your intention is to say that US military presence is to ensure that "the spice must flow", then please explicitly state that in your answer rather than leaving it to implication.
– Jared Smith
19 hours ago
add a comment |
U.S.-Iran Oil Consortium
In August 1953, the Iranian military, with the help of British and U.S. intelligence agencies, overthrows Iranian Prime Minister Mohammad Mossadeq—who nationalized the country's oil industry two years earlier. The U.S. government works with U.S. oil majors and the Iranian government—now run by the Shah—to bring Iranian oil back online following a British embargo of oil shipments. Iran's oil remains nationalized, but in October 1954 the government agrees to a consortium of mainly U.S. companies to manage Iran's oil industry.
Suez Canal Crisis
In a 1957 speech to Congress, Eisenhower says the Middle East would be a prize for international communism and asks Congress to provide economic and military support for any nation or groups of nations in the region with "governments manifestly dedicated to the preservation of independence and resistance to subversion."
Iran-Iraq War
The Reagan administration issues a national security directive in 1983 to increase the U.S. military presence in the Persian Gulf to help protect the oil facilities and shipments to allies. The war lasts eight years.
https://www.cfr.org/timeline/oil-dependence-and-us-foreign-policy
Carter Doctrine
The Carter Doctrine was a policy proclaimed by President of the United States Jimmy Carter in his State of the Union Address on January 23, 1980, which stated that the United States would use military force, if necessary, to defend its national interests in the Persian Gulf.
There are other examples at the first link, and that's just oil. The US has hundreds of military bases around the world to control strategic minerals and other commodities.
15
This does not answer the question.
– Stephen
yesterday
2
Many other countries, e.g. Germany have no shortages whatsoever either, despite having no military bases around the world.
– Scrontch
23 hours ago
3
Oddly, enough, these military bases and foreign policies did nothing to change oil prices during several times where it would have been useful to do so, like during the Carter administration and the Iraq War.
– Joe
22 hours ago
4
To expand on what @Stephen says, if your intention is to say that US military presence is to ensure that "the spice must flow", then please explicitly state that in your answer rather than leaving it to implication.
– Jared Smith
19 hours ago
add a comment |
U.S.-Iran Oil Consortium
In August 1953, the Iranian military, with the help of British and U.S. intelligence agencies, overthrows Iranian Prime Minister Mohammad Mossadeq—who nationalized the country's oil industry two years earlier. The U.S. government works with U.S. oil majors and the Iranian government—now run by the Shah—to bring Iranian oil back online following a British embargo of oil shipments. Iran's oil remains nationalized, but in October 1954 the government agrees to a consortium of mainly U.S. companies to manage Iran's oil industry.
Suez Canal Crisis
In a 1957 speech to Congress, Eisenhower says the Middle East would be a prize for international communism and asks Congress to provide economic and military support for any nation or groups of nations in the region with "governments manifestly dedicated to the preservation of independence and resistance to subversion."
Iran-Iraq War
The Reagan administration issues a national security directive in 1983 to increase the U.S. military presence in the Persian Gulf to help protect the oil facilities and shipments to allies. The war lasts eight years.
https://www.cfr.org/timeline/oil-dependence-and-us-foreign-policy
Carter Doctrine
The Carter Doctrine was a policy proclaimed by President of the United States Jimmy Carter in his State of the Union Address on January 23, 1980, which stated that the United States would use military force, if necessary, to defend its national interests in the Persian Gulf.
There are other examples at the first link, and that's just oil. The US has hundreds of military bases around the world to control strategic minerals and other commodities.
U.S.-Iran Oil Consortium
In August 1953, the Iranian military, with the help of British and U.S. intelligence agencies, overthrows Iranian Prime Minister Mohammad Mossadeq—who nationalized the country's oil industry two years earlier. The U.S. government works with U.S. oil majors and the Iranian government—now run by the Shah—to bring Iranian oil back online following a British embargo of oil shipments. Iran's oil remains nationalized, but in October 1954 the government agrees to a consortium of mainly U.S. companies to manage Iran's oil industry.
Suez Canal Crisis
In a 1957 speech to Congress, Eisenhower says the Middle East would be a prize for international communism and asks Congress to provide economic and military support for any nation or groups of nations in the region with "governments manifestly dedicated to the preservation of independence and resistance to subversion."
Iran-Iraq War
The Reagan administration issues a national security directive in 1983 to increase the U.S. military presence in the Persian Gulf to help protect the oil facilities and shipments to allies. The war lasts eight years.
https://www.cfr.org/timeline/oil-dependence-and-us-foreign-policy
Carter Doctrine
The Carter Doctrine was a policy proclaimed by President of the United States Jimmy Carter in his State of the Union Address on January 23, 1980, which stated that the United States would use military force, if necessary, to defend its national interests in the Persian Gulf.
There are other examples at the first link, and that's just oil. The US has hundreds of military bases around the world to control strategic minerals and other commodities.
answered yesterday
Keith McClaryKeith McClary
477210
477210
15
This does not answer the question.
– Stephen
yesterday
2
Many other countries, e.g. Germany have no shortages whatsoever either, despite having no military bases around the world.
– Scrontch
23 hours ago
3
Oddly, enough, these military bases and foreign policies did nothing to change oil prices during several times where it would have been useful to do so, like during the Carter administration and the Iraq War.
– Joe
22 hours ago
4
To expand on what @Stephen says, if your intention is to say that US military presence is to ensure that "the spice must flow", then please explicitly state that in your answer rather than leaving it to implication.
– Jared Smith
19 hours ago
add a comment |
15
This does not answer the question.
– Stephen
yesterday
2
Many other countries, e.g. Germany have no shortages whatsoever either, despite having no military bases around the world.
– Scrontch
23 hours ago
3
Oddly, enough, these military bases and foreign policies did nothing to change oil prices during several times where it would have been useful to do so, like during the Carter administration and the Iraq War.
– Joe
22 hours ago
4
To expand on what @Stephen says, if your intention is to say that US military presence is to ensure that "the spice must flow", then please explicitly state that in your answer rather than leaving it to implication.
– Jared Smith
19 hours ago
15
15
This does not answer the question.
– Stephen
yesterday
This does not answer the question.
– Stephen
yesterday
2
2
Many other countries, e.g. Germany have no shortages whatsoever either, despite having no military bases around the world.
– Scrontch
23 hours ago
Many other countries, e.g. Germany have no shortages whatsoever either, despite having no military bases around the world.
– Scrontch
23 hours ago
3
3
Oddly, enough, these military bases and foreign policies did nothing to change oil prices during several times where it would have been useful to do so, like during the Carter administration and the Iraq War.
– Joe
22 hours ago
Oddly, enough, these military bases and foreign policies did nothing to change oil prices during several times where it would have been useful to do so, like during the Carter administration and the Iraq War.
– Joe
22 hours ago
4
4
To expand on what @Stephen says, if your intention is to say that US military presence is to ensure that "the spice must flow", then please explicitly state that in your answer rather than leaving it to implication.
– Jared Smith
19 hours ago
To expand on what @Stephen says, if your intention is to say that US military presence is to ensure that "the spice must flow", then please explicitly state that in your answer rather than leaving it to implication.
– Jared Smith
19 hours ago
add a comment |
"Any planning"? Then the short answer is Yes. Planning doesn't have to be a wholesale Soviet-style command planning.
Contrary to popular belief and some comments above, free market is remarkably good at alleviating short-to-medium term crises. The 'Soviet'-style response to anything unexpected is, well, you have a shortrage -- until the next five-year plan kicks in (at best). In free market, you may have exorbitant prices, but at least some way of getting the stuff. And then alternatives will spring up, the higher the prices, the quicker.
But like with many natural processes (e.g. evolution), strategic thinking doesn't happen automatically. If we have a goal and a forecast power, we can do better. I would divide the measures into three categories:
- Stockpiling of the most critical resources. The US Strategic Petroleum Reserve has already been mentioned as an example. But despite the name, this is not so strategic in reality -- rather a patch to buy time.
- Accumulating financial resources to be able to get the required resoruces even at the speculative crisis prices.
- Fostering and diversifying industries that provide essential resources. (Such industries don't necessarily have to be local; on the international scale, this may involve diplomacy and, by extension, even war). Take the recent example with the updated list of critical minerals.
add a comment |
"Any planning"? Then the short answer is Yes. Planning doesn't have to be a wholesale Soviet-style command planning.
Contrary to popular belief and some comments above, free market is remarkably good at alleviating short-to-medium term crises. The 'Soviet'-style response to anything unexpected is, well, you have a shortrage -- until the next five-year plan kicks in (at best). In free market, you may have exorbitant prices, but at least some way of getting the stuff. And then alternatives will spring up, the higher the prices, the quicker.
But like with many natural processes (e.g. evolution), strategic thinking doesn't happen automatically. If we have a goal and a forecast power, we can do better. I would divide the measures into three categories:
- Stockpiling of the most critical resources. The US Strategic Petroleum Reserve has already been mentioned as an example. But despite the name, this is not so strategic in reality -- rather a patch to buy time.
- Accumulating financial resources to be able to get the required resoruces even at the speculative crisis prices.
- Fostering and diversifying industries that provide essential resources. (Such industries don't necessarily have to be local; on the international scale, this may involve diplomacy and, by extension, even war). Take the recent example with the updated list of critical minerals.
add a comment |
"Any planning"? Then the short answer is Yes. Planning doesn't have to be a wholesale Soviet-style command planning.
Contrary to popular belief and some comments above, free market is remarkably good at alleviating short-to-medium term crises. The 'Soviet'-style response to anything unexpected is, well, you have a shortrage -- until the next five-year plan kicks in (at best). In free market, you may have exorbitant prices, but at least some way of getting the stuff. And then alternatives will spring up, the higher the prices, the quicker.
But like with many natural processes (e.g. evolution), strategic thinking doesn't happen automatically. If we have a goal and a forecast power, we can do better. I would divide the measures into three categories:
- Stockpiling of the most critical resources. The US Strategic Petroleum Reserve has already been mentioned as an example. But despite the name, this is not so strategic in reality -- rather a patch to buy time.
- Accumulating financial resources to be able to get the required resoruces even at the speculative crisis prices.
- Fostering and diversifying industries that provide essential resources. (Such industries don't necessarily have to be local; on the international scale, this may involve diplomacy and, by extension, even war). Take the recent example with the updated list of critical minerals.
"Any planning"? Then the short answer is Yes. Planning doesn't have to be a wholesale Soviet-style command planning.
Contrary to popular belief and some comments above, free market is remarkably good at alleviating short-to-medium term crises. The 'Soviet'-style response to anything unexpected is, well, you have a shortrage -- until the next five-year plan kicks in (at best). In free market, you may have exorbitant prices, but at least some way of getting the stuff. And then alternatives will spring up, the higher the prices, the quicker.
But like with many natural processes (e.g. evolution), strategic thinking doesn't happen automatically. If we have a goal and a forecast power, we can do better. I would divide the measures into three categories:
- Stockpiling of the most critical resources. The US Strategic Petroleum Reserve has already been mentioned as an example. But despite the name, this is not so strategic in reality -- rather a patch to buy time.
- Accumulating financial resources to be able to get the required resoruces even at the speculative crisis prices.
- Fostering and diversifying industries that provide essential resources. (Such industries don't necessarily have to be local; on the international scale, this may involve diplomacy and, by extension, even war). Take the recent example with the updated list of critical minerals.
answered 3 hours ago
ZeusZeus
1313
1313
add a comment |
add a comment |
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5
The USA doesn't really have those aspects of a Planned Economy that would allow continued security of supply
– Dave Gremlin
22 hours ago
10
@Dave Gremlin The USA has continued security of supply precisely because it doesn't have a planned economy.
– Joe
21 hours ago
7
What?!? If planned economies worked the Soviet Union wouldn't have collapsed; and China wouldn't have abandoned it; and Venezuela would be working out just fine. Imagine the difficulties of having enough Turkeys available once a year throughout the country. Even with today's technology a central office couldn't coordinate that.
– Mayo
18 hours ago
6
"Is it just the free market doing its thing without any coordination?" Believe me, there is a whole lot of coordination going on in the free market. Just not the centrally-planned kind that does not work for all the reasons Hayek, von Mises and other free market theoreticians have expounded over decades. I personally am a tiny cog in that "coordination" process, forecasting retail demands so retailers know how much product to buy so the shelves are full (but not too full).
– Stephan Kolassa
18 hours ago
5
@DaveGremlin While we might like to think that, it really is not true. Agriculture is heavily regulated and subsidized to guarantee continuity of supply.
– emory
17 hours ago