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
Revisiting Supplier Relationship Management to Boost Real Value in the Supply Chain
Supplier relationship management (SRM) initiatives are on the rise, and companies who successfully implement these programs can realize a significant return on their technology investments.
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Going Beyond Rate Negotiations for Logistics Cost Savings
The pressure to reduce cost is a fundamental part of every organization today leaving many supply chain professionals constantly renegotiating rates. This webcast examines four areas that may hold untapped savings potentials and even help organizations negotiate better rates.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...