The blockbuster “Top Gun: Maverick” has put a strain on many of the concessions that make going to the movies so enjoyable. Can you imagine not having popcorn or candy available at the theater?
Well, that’s exactly what’s happening.
And it isn’t just the popcorn that’s in short supply but also the bags that hold the popcorn. In addition, the trays that hold candy, drinks and nachos are also in short supply.
This is another great example of how the supply side of the economy is under pressure, even though the majority of the world’s popcorn is grown in the United States. But popcorn is a lot more expensive to grow than soybeans. Farmers who normally supply the popcorn grown for theaters are now incentivized to grow something else because popcorn corn requires fertilizer for a successful crop. And fertilizer is expensive–record prices– and in short supply because of the war in the Ukraine.
But this doesn’t apply to just popcorn.
Across the board, the supply chain issue is creating havoc in every sector.
The solution is not easy or immediate but to move the needle, there needs to be consensus on the following:
1) What is the root cause of the problem?
2) Immediate elimination of administrative and regulatory barriers that hinder expansion of supply
3) Elimination of unneeded deficit spending.
What has taken eighteen months to create will take a lot longer to fix. Expanding the food and fuel supply can take years which means, unfortunately, inflation is likely to be around a lot longer than expected.
