Efficiency vs Resilience

We're all used to the fact that companies generally strive to maximize their profits. To compete they need to keep their prices low enough to attract customers. 

However, what does that imply about our economic systems? 

To answer that we first need to consider some of the actions taken to achieve competitive efficiencies. 

Outsourced labor

Utilizing cheaper labor in another region can certainly improve profits but it certainly creates both corporate and national dependencies. 

Outsourced manufacturing: 

Contracting cheaper manufacturing in another region or outright investment can lead to nation risk. Governments, for example, China, can put pressure on very large trading partners simply by discussing possible punitive measures as a form of negotiation.

Optimized supply chains: 

Just in time shipping. 

While these actions help a company to achieve higher profits, which is mandated in some countries, they can result in less resilient or even fragile economic systems. The COVID-19 pandemic has brought these issues to the forefront as various countries have seen demand skyrocket for certain products as economies are otherwise faltering. 

In particular, domestic supplies of masks, viral test kits, antibody test kits, test processing capability, hand-sanitizer supplies, and toilet paper have not been reliably available. We've seen first hand that over-reliance on external economic partners, or hyper-efficient supply chains, can be problematic during worldwide or regional disasters.

In short, our economies are not resilient. We're going to need to find ways to add resilience to our economies. This is likely to require government effort. An example might be to mandate a percentage of internal production capacity for key products that may be in demand during large scale calamities. 

Household Resilience

At the household level, we've had to consider whether or not food supplies would continue to ship as expected while watching prices rise. Unfortunately, this impact is happening as many of us are facing a loss of income as well. Not good.

Ignoring evictions or foreclosures for the moment, we can look to have supplies of non-perishable foods. Dry foods such as grains and cereals can last a long time. Many canned and processed goods will remain edible for long periods of time. If stuck at home one can take the time to learn how to make sourdough bread, especially if stores run out of yeast.

Stopping short of assuming society collapses, we can also use freezers to maintain a relatively large stock of meats and vegetables. However, these items need to be organized and/or tracked to avoid wastage over time.

Other Thoughts

Depending on whether you are in a city or in a rural setting you may be able to increase your own level of resilience. Perhaps you can grow leafy greens, which don't require all that much sunlight, in your home to reduce your reliance on store-bought vegetables. If you have a big enough yard you could plant a garden.

To stay connected you may need to have a small solar charging system so that you can use your phone or other small electronic devices. Do-it-yourself passive solar heating is also an option. These issues address both alternative sources of necessities and cost savings.