The United States economy is often compared to an aircraft carrier by experts. It’s massive, and is steered very slowly. Much like an aircraft carrier, it also has millions of moving parts. Some of those parts are human capital, while others are systems and machinery, much like American factories, supply chains, pipelines, and so forth. So when we’re talking about an entire economy in an article or blog post, it’s incredibly easy to leave out thousands of minute details that make the entire machine work.
However, you can take some solace in the fact that much of this giant economy is run by experts.
Yes I said it, but it’s likely not what you think.
Those “experts” are not at the top sometimes, but rather somewhere in the bottom of the ship, running the thousands of moving parts. American workers can extract minerals and resources from the ground, and grow food to feed the population. American engineers can turn those raw materials into useful everyday products, and factories can run the machinery to manufacture those products. American transportation experts and workers can move those goods to retailers, restaurants, grocers, and distribution hubs. American tech companies know how to provide the technology and support for these massive endeavors, and so on.
So, regardless of the Fed moves that are mucking things up, human capital knows how to make adjustments and decisions on the fly, in order to position themselves and their tiny individual sections of the economy for success. We saw this happen all through the pandemic, when millions of families and small businesses made tough decisions everyday in order to survive. Now, with the pandemic at least partially behind us, we must commit ourselves to the hard work of making this giant ship move out of the dire straits we’ve encountered along the way.
REconomix 