Debt deal is done. Now what?

This deal spells relatively good news for the economic engines that drive our country at a time when we can least afford to lose any signs of momentum whatsoever.

By ·

Now that there appears to be a tentative deal on increasing the federal government’s debt limit in place, I am going to be an optimist and ‘assume’ this is a done deal.

Why? Well, for one reason, reading about all the partisan bickering and related back-and-forth nature of what led to this point is draining to say the least.

And aside from that, it spells relatively good news for the economic engines that drive our country at a time when we can least afford to lose any signs of momentum whatsoever.

Failing to increase the debt limit, as mentioned in this space, would not only have been bad for the economy, it also would have been bad for supply chain operations.

A negative credit rating not only would significantly impact consumer patterns, it could have potentially wreaked havoc on inventory management and demand planning processes for both shippers and carriers.

At any conference you attend these days, you usually cannot go five minutes without hearing the word visibility and how important it is to have in when approaching the myriad facets of supply chain management.

What’s more, failure to agree on increasing the debt limit in any way could have set us back to 2008, when Wall Street crashed and put us in an untenable situation entirely.

Things are not as bad now, but, by no means, are they all that great or even that much better. But you don’t need me to tell you that.

Another thing failure to agree on increasing the debt limit would do is to negatively impact the already limited amount of credit available to do things like reinvest in businesses so carriers can by more trucks, rail cars, and containers, and shippers can increase warehouse space, and add personnel, and also allow both sides to grow through expansion and acquisition at a more fervent pace.

I am trying not to get too far ahead of my self, but these days good news—or even a good sign of economic positivity—can be hard to come by. So I will take last night’s news as a good sign….for now.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Supply Chain Visibility: Illuminating the Path to Responsive, Agile Operations
Supply chain visibility is not an end, but a tool. It is the means to achieving true supply chain effectiveness, agility and ultimately, corporate profitability.
Download Today!
From the December 2017 Logistics Management Magazine Issue
Trade and transport analysts see rates rising across all modes in accordance with continued expansion of domestic and international markets. Economists, meanwhile, say shippers can expect revenue growth in transport verticals to remain in the 3%-plus range.
2018 Customs & Regulations Update:10 observations on the “digital trade transformation”
Moore on Pricing: Freight settlement and your TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2018 Rate Forecast
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...
Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...

2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...