THE WORLD ECONOMY IS IMPERILED BY A FORCE HIDING IN PLAIN SIGHT:
Most of the challenges tearing at the global economy were set in motion by the world’s reaction to the spread of COVID-19 and its attendant economic shock, even as they have been worsened by the latest upheaval — Russia’s disastrous attack on Ukraine, which has diminished the supply of food, fertilizer and energy.
“The pandemic itself disrupted not only the production and transportation of goods, which was the original front of inflation, but also how and where we work, how and where we educate our children, global migration patterns,” said Julia Coronado, an economist at the University of Texas at Austin, speaking this past week during a discussion convened by the Brookings Institution in Washington. “Pretty much everything in our lives has been disrupted by the pandemic, and then we layer on to that a war in Ukraine.”
It was the pandemic that prompted governments to impose lockdowns to limit its spread, hindering factories from China to Germany to Mexico. When people confined to home then ordered record volumes of goods — exercise equipment, kitchen appliances, electronics — that overwhelmed the capacity to make and ship them, yielding the Great Supply Chain Disruption.
The resulting scarcity of products pushed prices up. Companies in highly concentrated industries from meat production to shipping exploited their market dominance to rack up record profits.
The pandemic prompted governments from the United States to Europe to unleash trillions of dollars in emergency spending to limit joblessness and bankruptcy. Many economists now argue that they did too much, stimulating spending power to the point of stoking inflation, while the Federal Reserve waited too long to raise interest rates.
Now playing catch-up, central banks like the Fed have moved assertively, lifting rates at a rapid clip to try to snuff out inflation, even while fueling worries that they could set off a recession.
Also deeply exacerbated by the lockdowns: Supermarkets, Restaurants Hire Security, Limit Hours to Combat Crime.
Food-oriented establishments and consumers are airing increased concerns over crime as U.S. consumers have resumed shopping in stores and dining out, after governments and businesses lifted Covid-19 restrictions. Forty-four percent of 1,005 adults surveyed earlier this month said they were more fearful to be in public because of bad behavior and rising violence, up from 39% in March, according to a national online survey by food-service research firm Lisa W. Miller & Associates LLC.
Violent crime has been on the rise in the U.S. since the onset of the pandemic, with cities including Seattle, Los Angeles, Chicago and New York reporting a surge in shootings and killings. Murder rates have also soared in rural areas. Local officials and law enforcement point to pandemic-related stress, a proliferation of guns and increased alcohol sales, among other factors.
While violent crimes in restaurants and grocery stores remain a small part of the overall U.S. total, incidents have increased in recent years, according to Federal Bureau of Investigation statistics. The number of aggravated assaults that took place in restaurants increased by 60% from 2018 to 2020, the FBI data showed, and the number in grocery stores increased by 73% during the period.
Becky Mulligan said she answered a call this month from one of her Mod Super Fast Pizza Holdings LLC store managers, who said an armed robber had hit one of the Bellevue, Wash.-based chain’s stores.
Ms. Mulligan, senior vice president of operations for the 520-store pizza chain, said she has had to respond to more incidents of violence, theft and robberies affecting the chain over the past six months, particularly as gas prices have risen and the economy has cooled.
“There seems to be a layer of stress going into the restaurants, more than it used to,” she said. About six weeks ago, after an armed gunman entered one of Mod’s West Coast stores, a manager put herself in front of a young crew member working at the cash register, Ms. Mulligan said.
Mod is installing more panic buttons in its stores, and offering emotional support resources to employees after an incident. Employees are instructed to never leave the back doors of restaurants open, and the company limits hours if working at night feels unsafe, she said.
Why, it’s as if: America’s Cop-Hating Cities Will Soon Face an Ugly Reckoning. “Many of the big ‘defund the police’ cities quickly realized the error of their ways and tried to undo some of the damage they’d done, largely to no avail. It turns out that blaming cops for everything kind of sticks with the cops. It’s a dangerous and difficult profession as it is, why would anyone want to do it in a city run by people who would rather side with criminals?”