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
Supplier Relationship Micro Management
Optimizing Across Six Guiding Principles
Download Today!
From the July 2017 Logistics Management Issue
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish demand and political doubt. The result: “cognitive dissonance” that finds a $1.4 trillion market scratching its head.
2017 Truckload Brokerage Roundtable: Technology continues to connect the dots
Cloud Transportation Management Systems (TMS): Weis Markets streamlines “both sides” of the DC door
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Women in Logistics: Breaking Gender Roles to Win the War for Talent
In this session you'll hear from a panel of women who are now leading top-level logistics and supply chain operations. The panel will share their success stories as well as advice for women who are now making their way up the ladder.
Register Today!
EDITORS' PICKS
28th Annual State of Logistics: Into the great unknown
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

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...