How Amazon and Walmart get around the disruptions
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Illustration: Peter and Maria Hoey

 

Dear reader,



When supply chain disruptions strike, it's hard for retailers to get
their stores stocked the way they want. That's why we see empty
shelves or products on back-order. But it's easier if you're big
enough to charter your own ship and pick up the goods yourself.

Most companies can't do that. But Amazon, Walmart, Home Depot, and a
few others can, and have. Retail giants have expanded their logistics
operations and struck deals with suppliers, allowing them to get goods
faster than their competitors. In this way, the supply chain crisis has
further widened the gap between the biggest and smallest companies in
our economy.

Journalist Rose Adams breaks this down in our latest article for our
special issue, How We Broke the Supply Chain, finding that the rapidly
consolidating market has broad implications: workers earn less,
communities lose key services, and despair spreads. The smaller
businesses that manage to stick around pay more for goods, since
suppliers can't raise prices on the big guys without risking the loss
of their business. This increases inflation across the economy.

You can read Rose Adams's important story here.

The story is part of our special issue, which explains how bad policies
created the disaster that is causing shortages and raising costs. You
can read all of the stories at
prospect.org/supplychain

And, you can help support this work by becoming a member today
. All of the reader support we receive
funds our editorial mission: illuminating stories about ideas, politics
and power.

If you're already a Prospect member, THANK YOU!

We can't do special issues like this without you. And if the Prospect
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Thank you for your consideration.

Sincerely,
David Dayen, Executive Editor
The American Prospect

 

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