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Business experts split on criticism of Buttigieg on supply chain issues

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Experts say Transportation Secretary Pete Buttigieg should work with truck industry to address supply chain issues.

Amid images of goods stranded on ships near America’s ports and notable price increases in basic commodities, including food and gasoline, right-wing critics are lambasting Pete Buttigieg in his role overseeing the supply chain as transportation secretary, although business experts in the field are split over whether that criticism is valid.

Business experts who spoke to the Blade ā€” and whose own views may be colored by their political affiliations ā€” offered a range of explanations for the break down in the supply chain, such as a sharp increase in demand among American consumers, the coronavirus pandemic, and a shortage of truck drivers responsible for transporting goods, which led to different conclusions as to whether Buttigieg, the first openly gay person confirmed by the U.S. Senate for a Cabinet position, was responsible.

Daniel Innis, a professor at the University of New Hampshire Peter T. College College of Business and Economics and who specializes in marketing and logistics and is a board member of Log Cabin Republicans, said criticism of Buttigieg is “certainly warranted” because he isn’t showing leadership in bringing stakeholders to the table.

“Pete can help by sitting down with the trucking industry, the railroads and so on and saying, ‘Look, this is a crisis that we have to solve,'” Innis said. “Eventually, you know, we’re going to get to a place where things that are really important aren’t available to us, and this has to be fixed. So you know, we need some leadership coming from Mayor Pete.”

As a result of supply chain issues, consumers are seeing increased prices for goods, including basic necessities like food and gasoline. With the Thanksgiving holiday fast approaching, experts say prices for turkey could be the most expensive in history for American consumers.

Innis, who said the supply chain depends on flow and “if any part of the chain breaks down, the whole thing collapses,” said the problem he’s hearing is on the receiving end at terminal hubs where truck drivers are supposed to pick up goods.

As an example, Innis offered a personal anecdote about being in Savannah, Ga, and seeing about 20 ships on the coastline waiting to come into the port. Such a port, Innis said, would be a first stop for goods before they’re loaded on trains and headed to terminal hubs, where truck drivers then pick it up.

“That’s where it’s breaking down,” Innis said. “Things are not getting picked up. And maybe a month or so ago, the Union Pacific Railroad basically barred anything coming out of LA for a week, so they could clear out the stuff from the Chicago terminal that wasn’t being picked up. So it seems to me based on my observation that we’ve got a real problem with truck drivers at the final destinations, and they’re not able to pick things up. So it backs up the entire system, and it’s backed up now all the way to the ocean.”

Specific things Buttigieg should be addressing with the trucking industry, Innis said, are why there is an such an acute truck driver shortage and what could be done to address it, including whether or not to change hours of service limiting the number of work hours truckers can drive each day, at least in the short term.

Other ideas Innis brought up, amid a national discussion about making community college free, was whether or not to make truck driver training free or giving 0 percent loans for the cost of school. Additionally, Innis said regulations prohibiting truckers under age 21 from driving across state lines should be scrapped.

“If you can drive from Miami to Jacksonville, which is eight hours, shouldn’t you be able to drive from Jacksonville to Charleston, which is four?” Innis said. “So you see, these are the things that he needs to be talking with the industry about, and maybe taking steps to address. And with just those little things, even if you pick up 10 or 15 percent of capacity, you have really moved things forward, maybe enough to start to gradually bring down the backlog.”

But defenders of the Biden administration say the supply chain breakdowns are complications of the increased demand, not any mismanagement at the top.

Jason Miller, associate professor of supply chain management at the Michigan State University Eli Broad College of Business, echoed the sense the blame for supply chain issues should be placed on increased demand and not Buttigieg.

ā€œThe disruptions the import supply chain is experiencing are due to record demand for imports due to record consumer spending on durable goods,” Miller said. “As such, there is nothing Secretary Buttigieg could truly do in such a scenario.”

Indeed, as Miller pointed out, waterborne containerized imports by weight through the first nine months of 2021 are up 17 percent from the first nine months of 2019, according to data from the Census Bureau obtained from USA Trade Online.

“This is why I like to characterize the import supply chain as strained due to record demand, as opposed to broken,” Miller concluded.

Innis, however, said ascribing supply chain issues to the simple increase in demand for goods ā€” while valid in some respects ā€” was over-simplifying matters, pointing out supply chain issues include goods produced and distributed domestically.

“Meat is not being imported from China,” Innis said. “It’s not sitting on a container, nor is bread, nor paper products nor all of these things that aren’t showing up in our stores. My nephew works at Whole Foods. He says they’re getting half shipments from companies. That is not sitting out on the ocean. And so, I’m not buying it across every category.”

Lisa Anderson, a supply chain expert and blogger with the Claremont, Calif.-based LMA Consulting Group, said Buttigieg has fallen short in his role as transportation secretary amid the supply crisis, concluding with respect to objections over his performance: “Unfortunately, the criticism is warranted.”

Among the tasks Buttigieg should take on, Anderson said, are touring the ports, talking to truck drivers and owner operators to understand the constraints from the front lines, coordinating with groups such as the Inland Empire Economic Partnership, the center of the logistics supply chain and conduit from Asia to the rest of the United States and finding ways to bridge government interests with business interests for the common good.

“It is a complex issue and will require strong leadership, involvement, collaboration, innovation and new thinking (breaking the traditional thinking) to resolve,” Anderson concluded.

Right-wing critics have seized on the supply chain issues and turned them into an indictment of the transportation secretary, who with his spouse Chasten Buttigieg, is a new parent, electing to stay on paternity leave for two months as the crisis unfolded.

Fox News’s Tucker Carlson, in a segment last month calling Buttigieg missing in action over the supply chain crisis, speculated Buttigieg may have taken off work “learning how to breast feed,” which defenders of Buttigieg denounced as a homophobic attack (although the snide comment could easily be made of a man in an opposite-sex relationship opting to go on paternity leave). Later, Carlson in a subsequent segment posited affirmative action is only the reason Buttigieg has the role of transportation secretary, implying the position was given to the former South Bend mayor and presidential candidate simply because he’s gay.

Innis, distancing himself from other critics in right-wing media despite his conservative political affiliations, said he was “not going to criticize” Buttigieg’s decision to go on paternity leave, which he called “something that is a part of life.”

The coronavirus pandemic, which disrupted livelihoods and economies from top to bottom across the globe, has also been identified as a factor in complications with the global supply chain, regardless of the administration in power.

Mahour Parast, a professor at Arizona State University’s School of Sustainable Engineering and the Built Environment who specializes in supply chain risk and resilience management, said ā€œexternal shocksā€ can be in play with such systems and pointed to coronavirus as an example of such a disruption.

“A supply chain that is designed to be efficient (e.g. cost-effective) cannot be simultaneously resilient to disruptions,” Parast said. “This means that when disruptions such as COVID happen, the supply chain has difficulty to be responsive (because the entire system is designed to be efficient and to minimize cost). To be efficient, redundancy should be eliminated because redundancy adds cost to the system. To be resilient, redundancy is needed because it increases a systemā€™s responsiveness.”

As an example of an eliminated redudancy that could end up being needed in a supply chain crisis, Parast pointed to the decision to move operations overseas to benefit from lower production cost or access to raw materials, which he said leads to cost savings at the expense of responsiveness and agility.

“One can make supply chains more resilient by regionalizing supply chain operations in which case there are several locations to back up each other in case of disruptions,” Parast said.

The Biden administration, for its part, has declared steps it would take to ease supply chain issues, mostly consistent with the dispersement of U.S. government money as a short-term solution. On Tuesday, the White House announced funding for a pop-up container yard project underway at the Port of Savannah, a $420 million grant program for ports and marine highways launched within the next 45 days and identifying coastal and waterway projects by the U.S. Army Corps of Engineers construction.

The White House announcement comes days after President Biden signed into law the bipartisan infrastructure package after months of negotiations among lawmakers, which he was set on Wednesday to promote at an event at the Port of Baltimore.

In his defense, Buttigieg has said in media appearances that supply chain issues aren’t the result of mismanagement, but prosperity and suppliers not being able to keep up under Biden administration policies seeking to lift the country up from economic stagnation.

Buttigieg, appearing on a CNN segment last month with Jake Tapper to respond to criticism about supply chain issues, said the problem exists because “retail sales are through the roof.”

“If you think about those images of ships, for example, waiting at anchor on the West Coast, you know, every one of those ships is full of record amounts of goods that Americans are buying because demand is up, because income is up, because the president has successfully guided this economy out of the teeth of a terrifying recession,” Buttigieg said. “Now the issue is, even though our ports are handling more than they ever have, record amounts of goods coming through, our supply chains canā€™t keep up.”

In June, the Biden administration set up a supply chain disruptions task force, which is led by the secretaries of commerce, transportation, and agriculture and charged with focusing on areas where a mismatch between supply and demand has been evident: homebuilding and construction, semi-conductors, transportation and agriculture and food.

A Department of Transportation spokesperson, asked by the Washington Blade to comment for this article, said Buttigieg in his role as co-chair of the Task Force “is focused on ensuring that the Department is doing all it can to address these issues and has made progress along the way.”

Among other examples, the spokesperson pointed to the Ports of Los Angeles and Long Beach announcing they would expand hours of operation; new support for paid apprenticeship programs in the truck driving industry; and Union Pacific railroad announcing it would go to 24/7 operations.

Innis, at the end of the day, rejected the idea Buttigieg’s hands were tied, saying despite increased demand causing blockages in the supply chain “there are steps that can be taken to ease it, and those are not being taken.”

“When you drill down into certain product categories, there are severe problems that aren’t being addressed that have nothing to do with the oceans, or even the trains,” Innis said. “Because your bread isn’t riding on a train. It’s on a truck coming from a local area. And these shortages are real. You walk through the grocery store, you see it.”

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After Biden signs TikTok ban its CEO vows federal court battle

ā€œRest assured, we arenā€™t going anywhere,ā€ CEO said

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TikTok mobile phone app. (Screenshot/YouTube)

President Joe Biden signed an appropriations bill into law on Wednesday that provides multi-billion dollar funding and military aid for Ukraine, Israel, and Taiwan after months of delay and Congressional infighting.

A separate bill Biden signed within the aid package contained a bipartisan provision that will ban the popular social media app TikTok from the United States if its Chinese parent company ByteDance does not sell off the American subsidiary.

Reacting, TikTok CEO Shou Zi Chew said Wednesday that the Culver City, Calif.-based company would go to court to try to remain online in the U.S.

In a video posted on the company’s social media accounts, Chew denounced the potential ban: ā€œMake no mistake, this is a ban, a ban of TikTok and a ban on you and your voice,ā€ Chew said. ā€œRest assured, we arenā€™t going anywhere. We are confident and we will keep fighting for your rights in the courts. The facts and the constitution are on our side, and we expect to prevail,ā€ he added.

White House Press Secretary Karine Jean-Pierre adamantly denied during a press briefing on Wednesday that the bill constitutes a ban, reiterating the administration’s hope that TikTok will be purchased by a third-party buyer and referencing media reports about the many firms that are interested.

Chew has repeatedly testified in both the House and Senate regarding ByteDance’s ability to mine personal data of its 170 million plus American subscribers, maintaining that user data is secure and not shared with either ByteDance nor agencies of the Chinese government. The testimony failed to assuage lawmakers’ doubts.

In an email, the former chair of the House Intelligence Committee, U.S. Rep. Adam Schiff (D-Calif.), who doesn’t support a blanket ban of the app, told the Washington Blade:

ā€œAs the former chairman of the House Intelligence Committee, I have long worked to safeguard Americansā€™ freedoms and security both at home and abroad. The Chinese Communist Partyā€™s ability to exploit private user data and to manipulate public opinion through TikTok present serious national security concerns. For that reason, I believe that divestiture presents the best option to preserve access to the platform, while ameliorating these risks. I do not support a ban on TikTok while there are other less restrictive means available, and this legislation will give the administration the leverage and authority to require divestiture.ā€

A spokesperson for U.S. Sen. Alex Padilla (D-Calif.) told the Blade: ā€œSenator Padilla believes we can support speech and creativity while also protecting data privacy and security. TikTokā€™s relationship to the Chinese Communist Party poses significant data privacy concerns. He will continue working with the Biden-Harris administration and his colleagues in Congress to safeguard Americansā€™ data privacy and foster continued innovation.ā€

The law, which givesĀ ByteDance 270 days to divest TikTokā€™s U.S. assets, expires with a January 19, 2025 deadline for a sale. The date is one day before Biden’s term is set to expire, although he could extend the deadline by three months if he determines ByteDance is making progress or the transaction faces uncertainty in a federal court.

Former President Donald Trump’s executive order in 2020, which sought to ban TikTok and Chinese-owned WeChat, a unit of Beijing-based Tencent, in the U.S., was blocked by federal courts.

TikTok has previously fought efforts to ban its widely popular app by the state of Montana last year, in a case that saw a federal judge in Helena block that state ban, citing free-speech grounds.

The South China Morning Post reported this week that the four-year battle over TikTok is a significant front in a war over the internet and technology between Washington and Beijing. Last week, Apple said China had ordered it to remove Meta Platformsā€™s WhatsApp and Threads from its App Store in China over Chinese national security concerns.

A spokesperson for the ACLU told the Blade in a statement that “banning or requiring divestiture of TikTok would set an alarming global precedent for excessive government control over social media platforms.”

LGBTQ TikToker usersĀ are alarmed, fearing that a ban will represent the disruption of networks of support and activism. However, queer social media influencers who operate on multiple platforms expressed some doubts as to long term impact.

Los Angeles Blade contributor Chris Stanley told the Blade:

“It might affect us slightly, because TikTok is so easy to go viral on. Which obviously means more brand deals, etc. However they also suppress and shadow ban LGBTQ creators frequently. But we will definitely be focusing our energy more on other platforms with this uncertainty going forward. Lucky for us, we arenā€™t one trick ponies and have multiple other platforms built.”

Brooklyn, N.Y.,-based gay social media creator and influencer Artem Bezrukavenko told the Blade:

“For smart creators it wonā€™t because they have multiple platforms. For people who put all their livelihood yes. Like people who do livestreams,” he said adding: “Personally Iā€™m happy it gets banned or American company will own it so they will be less homophobic to us.”

TikTokā€™s LGBTQ following has generally positive experiences although there have been widely reported instances of users, notably transgender users, seemingly targeted by the platformā€™s algorithms and having their accounts banned or repeatedly suspended.

Of greater concern is the staggering rise in anti-LGBTQ violenceĀ and threats on the platform prompting LGBTQ advocacy group GLAAD, in its annual Social Media Safety Index, to give TikTok a failing score on LGBTQ safety.

Additional reporting by Christopher Kane

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Smithsonian staff concerned about future of LGBTQ programming amid GOP scrutiny

Secretary Lonnie Bunch says ‘LGBTQ+ content is welcome’

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Lonnie G. Bunch III, secretary of the Smithsonian Institution, appears before a Dec. 2023 hearing of the U.S. Committee on House Administration (Screen capture: Forbes/YouTube)

Staff at the Smithsonian Institution are concerned about the future of LGBTQ programming as several events featuring a drag performer were cancelled or postponed following scrutiny by House Republicans, according to emails reviewed by the Washington Post.

In December, Secretary Lonnie G. Bunch III appeared before a hearing led by GOP members of the Committee on House Administration, who flagged concerns about the Smithsonian’s involvement in “the Left’s indoctrination of our children.”

Under questioning from U.S. Rep. Stephanie Bice (R-Okla.), Bunch said he was “surprised” to learn the Smithsonian had hosted six drag events over the past three years, telling the lawmakers “It’s not appropriateĀ to expose children” to these performances.

Collaborations with drag artist Pattie Gonia in December, January, and March were subsequently postponed or cancelled, the Post reported on Saturday, adding that a Smithsonian spokesperson blamed ā€œbudgetary constraints and other resource issuesā€ and the museums are still developing programming for Pride month in June.

ā€œI, along with all senior leaders, take seriously the concerns expressed by staff and will continue to do so,ā€ Bunch said in a statement to the paper. ā€œAs we have reiterated, LGBTQ+ content is welcome at the Smithsonian.ā€

The secretary sent an email on Friday expressing plans to meet with leaders of the Smithsonian Pride Alliance, one of the two groups that detailed their concerns to him following December’s hearing.

Bunch told the Pride Alliance in January that with his response to Bice’s question, his intention was to “immediately stress that the Smithsonian does not expose children to inappropriate content.”

“A hearing setting does not give you ample time to expand,ā€ he said, adding that with more time he would have spoken “more broadly about the merits and goals of our programming and content development and how we equip parents to make choices about what content their children experience.ā€

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Survey finds support for Biden among LGBTQ adults persists despite misgivings

Data for Progress previewed the results exclusively with the Blade

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Former President Donald Trump and President Joe Biden (Washington Blade photo by Michael Key)

A new survey by Data for Progress found LGBTQ adults overwhelmingly favor President Joe Biden and Democrats over his 2024 rival former President Donald Trump and Republicans, but responses to other questions may signal potential headwinds for Biden’s reelection campaign.

The organization shared the findings of its poll, which included 873 respondents from across the country including an oversample of transgender adults, exclusively with the Washington Blade on Thursday.

Despite the clear margin of support for the president, with only 22 percent of respondents reporting that they have a very favorable or somewhat favorable opinion of Trump, answers were more mixed when it came to assessments of Biden’s performance over the past four years and his party’s record of protecting queer and trans Americans.

Forty-five percent of respondents said the Biden-Harris administration has performed better than they expected, while 47 percent said the administration’s record has been worse than they anticipated. A greater margin of trans adults in the survey ā€” 52 vs. 37 percent ā€” said their expectations were not met.

Seventy precent of all LGBTQ respondents and 81 percent of those who identify as trans said the Democratic Party should be doing more for queer and trans folks, while just 24 percent of all survey participants and 17 percent of trans participants agreed the party is already doing enough.

With respect to the issues respondents care about the most when deciding between the candidates on their ballots, LGBTQ issues were second only to the economy, eclipsing other considerations like abortion and threats to democracy.

These answers may reflect heightened fear and anxiety among LGBTQ adults as a consequence of the dramatic uptick over the past few years in rhetorical, legislative, and violent bias-motivated attacks against the community, especially targeting queer and trans folks.

The survey found that while LGBTQ adults are highly motivated to vote in November, there are signs of ennui. For example, enthusiasm was substantially lower among those aged 18 to 24 and 25 to 39 compared with adults 40 and older. And a plurality of younger LGBTQ respondents said they believe that neither of the country’s two major political parties care about them.

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