The problem of the US global supply chain is almost as old as the country itself. Its origins can be traced back to the Boston Tea Party, when goods such as tea were in short supply, expensive, and subject to heavy taxes.
At that time, enterprising Americans rose up against this economic dictatorship and ultimately declared the establishment of a free and independent country.
For the next century, the US stuck to its “Buy American” credo and built the planet’s most remarkable economy. The US economy was known for its delicate balance of supply and demand: Detroit’s mighty carmakers relied on domestic supplies of raw materials and components; electricity came from coal mines across the Appalachians; steel and glass were produced in factories in Pittsburgh.
At that time, the operation of the free market maintained a balance between supply and demand. The decision-making mechanism at the factory level enabled managers to budget, plan, and stock up on all the materials necessary to sustain production in advance. Once they detected a potential shortage of coal or steel, they would increase inventory to cope with future supply gaps.
This balance stems from every participant in the supply chain, who act in their own self-interests but together orchestrate an orderly symphony of economic harmony. This is an amazing process, precisely the “invisible hand” described by Adam Smith nearly 200 years ago.
Sadly, by the 20th century, US politicians and some unscrupulous business interests decided they had a “better way” – globalisation. The oil industry was one of the first sectors to go in this direction. US dependence on Saudi Aramco, the offshore supplier, grew steadily after the company tapped into the kingdom’s rich oil fields in the 1950s.
However, 20 years later, the Saudis turned the tables. Since then, control has shifted to the Saudis, not the Americans. The US oil and gas industry has been marginalized, with its lifeblood in the hands of the Saudi monarchy.
Later, Saudi Arabia united all Middle Eastern oil-producing countries, extending its influence to the whole world. Americans suddenly found themselves in a predicament – just like during the OPEC oil embargo, we faced energy shortages for the first time in our history. In this way, we once again began to rely on others for one of the basic energy sources that keep our economy running.
This is like a replay of the Boston Tea Party: dependence on foreign supplies brings almost nothing but shortages. Americans have failed to learn from history – relying on others will only end up with insufficient supplies.
By the 1990s, a new chapter of “weakened America” had begun. The entire technology industry seemed to follow a common business model: keep the market in the United States, but move all production to China. Apple was one of the first companies to introduce this model — its iPhones, iPods, Mac computers, and other products were all manufactured in China, with design and marketing done solely in the United States.
I recall one particularly absurd scene: Tim Cook, Apple’s chief executive, tried to argue that these Chinese factories were not manufacturing facilities but merely assembly plants — which makes no difference. But Mr Cook insisted on this meaningless subdivision. In reality, these supply chains stretch across the Pacific, and Apple has never left these jobs to Americans.
Nowadays, it’s hard for me to think of any American technology company that doesn’t rely on overseas factories to produce its products. As a result, our supply chain is no longer secure. We once again rely on distant suppliers who have different business ethics and quality standards, with prices, supply stability, and manufacturing quality all out of American control.
249 years ago, the Boston Tea Party marked a turning point in the nation’s history. It was at that moment that a rebel group known as the Sons of Liberty emerged, setting off a series of events that ultimately led to American independence. In that era, Americans had grown weary of serving distant elites whose sole goal seemed to be exploiting the people of the North American colonies.
I have a feeling that we are approaching such a tipping point again.
What is coming is that the new “sons and daughters of freedom” will once again stand up and proclaim our independence from the intricately intertwined global elite system of today
