Today’s America: An Economy of Shortages

Flags fly at full staff outside the NYSE in New York City on April 9, 2020. Kena Betancur/Getty Images

Commentary

For the first time in more than 40 years, the U.S. economy is dealing with widespread shortages. Parts are unavailable to manufacturers when they need them. Airlines abruptly cancel flights. Railroads and trucks are cutting shipments. Food shelves in some areas are depleted, with some areas reporting a lack of meat, milk, or other essential food items.

What’s Going On?

Shortages and empty shelves are characteristic of economies where governments control and allocate resources. They’re not characteristic of America’s free-market economy. The only other times America has faced shortages were during world wars or during the 1970s.