WASHINGTON-Washington’s President Biden assured Americans Wednesday that he can control high inflation. He announced an agreement to expand business at the Port of Los Angeles due to rising costs and container ships waiting in traffic congestion. This could threaten the U.S. economy as well as holiday shopping.
Container ships are stuck in ports, and unloaded goods are still waiting for trucks. This causes the price rise to be large and can lead to prolonged inflation cycles.
The White House responded by finalizing an agreement with the Port of Los Angeles that will operate 24 hours a days, 7 days a semaine. The White House hopes that the night operation will break the impasse and reduce delays in transportation for toasters, bicycles, and cars.
Biden stated that these changes were announced at the White House by saying: “Today we’ve got some good news: We’ll help accelerate the delivery of goods in the United States.”
However, University of Michigan economist Betsey Stevenson pointed out on Twitter that “the economy is in a very fragile and unprecedented situation.” Prices have risen by more than 5%, more and more Americans are quitting their jobs, and the delta variant makes the coronavirus big. Popularity can be dangerous.
Stevenson, an ex-member of the White House Council of Economic Advisers was quoted as saying that no one can predict what would happen.
40% of all container traffic to the United States comes from California’s ports of Los Angeles, Long Beach and San Francisco.