Intel’s woes expose a rickety new world order – U.S. Economy –

13 Dec

Ever since an earthquake in Taiwan in 1999 disrupted Dell’s supply chain, it’s been clear that the relentless search for flexibility, cheap labor coasts, and just-in-time manufacturing has a significant downside. Knock one link out of the chain, and the whole mechanism comes to a complete hall. We witnessed this on a huge scale when the Fukushima earthquake/tsunami/nuclear disaster disrupted all kinds of supply chains and slowed global economic growth. Thailand is just the latest case study.

But there’s another story here about climate change. Thailand has long been prone to disastrous flooding….

But the worst flooding in decades happens to be exactly what scientists have predicted will happen in Thailand as a result of rising temperatures. In the future we can expect even greater climate-related disruptions. So what happens when you mix a global economy built on fragile globe-spanning supply and production chains with increasing incidences of extreme weather events? You get chaos.

via Intel’s woes expose a rickety new world order – U.S. Economy –


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