what is the impact on the economy? . it is perfectly understandable they are incredibly complex. there is usually no need to worry about the supply chain. but when global disruptions hit, like a pandemic, it hits supply chain's particularly hard. most companies make their products. a supply is just a journey a product takes.

raw material plus labor and shipping, everything to create the product. it comes together at a factory. that is how it happens. global supply chains have helped bring down prices.

they can't get the computer chips they need. the climate disaster closed a port in china. it can delay shipping of furniture. people have more money. if you are a mom you have kids under the age of evan, you get $300 a month. it changed people's lives. what happens if there is nothing to buy?

and you have more money? it creates a real problem. we are experiencing higher demand for goods. wages are. people have money in the bank. american families have been able to buy more products. they are not going out to dinner and lunch. they are staying home and ordering online. prices go up. we have nearly a 20% more goods coming into the country. they change the way they spend

our time and money. people have a little bit more breathing room than they did last year. that is a good day. it means we have higher demand for goods. this is a recipe for delay and higher prices. people are feeling it. we need to stabilize the supply chain. i spoke with the ceos of major retailers. the leading freight movers.

there is a lot of stuff in the boards. we have worked with the shipping. and retailers. to speed up commerce. to get things to your doors. to get things fully stocked this holiday season. instead of pointing fingers. we are seeing people work together. state and local governments.

infrastructure used to be rated the best in the world. but now we ranked 13th in the world. 12 countries in the world have more modern efficient infrastructure. here in baltimore you have a port that is older than america itself. it has been in operation for 315 years. this port is connected to the nation's oldest rail line.

they rely on tunnels. the tunnel has become a major bottleneck. we are getting a grant to update the title. they can move out more quickly. it is about. . taking a long-term view of our economy to ensure our shelves are stocked with product.

the world continues to change. it will all come our way. we need companies throughout the supply chain. that is when disruption hits. companies can quickly adapt. they have a strong foundation. dignity and respect is what it is about. taking a longer term view. when i got elected i said i get to spend billions of dollars. making everything from aircraft carriers to balloon.

so much of it has been going out to foreign contractors. we set new rules to strengthen our domestic supply chain. never again should our country have to rely on one company. we are in a competition for the 21st century. other countries are closing in. we risk losing our edge if we do not step up now. as a major step forward. it represents the biggest investment imports in u.s. history.

with the bill we passed last week and the steps we are taking to reduce bottlenecks, we are set to make significant progress. very soon we will see supply chain catching up. this work is going to be critical. we continue to build the economy. we need to unlock the full dynamism of our economy. with this plan, that is exactly what we're going to do. we will build a better america. it is not a joke.

we will leave the world again. i will stop talking. you are going to get cold. i want to thank the longshoreman. you brought me to the dance. you stuck with me. you stepped up every time you were asked. i want to personally thank you. god bless you all and god bless all the workers who keep our economy going. [applause]

romaine: the president of the united states, joe biden, giving a speech at the board of baltimore -- port of baltimore. he uses as an opportunity to tout his bill back better plan. he talked about taking a longer term view of the economy we want to bring in our chief washington correspondent. i'm curious about what. we heard from the president.

>> this was a speech to tout his economic agenda. he spoke to the inflation data that we have today. he is saying we understand the american people. the white house is starting to be concerned about this. the president talked about lifting wages. they have signed on and endorsed his economic agenda.

his infrastructure bill has some of that in there. they have short-term questions about all the inflationary concerns. caroline: it sounded like he was making a case for transitory inflation. he was trying to push back against the. we are in the midst of the hustle. is it likely he will get this? >> it is a great question. it makes it harder. it was that inflationary

pressure. too much spending right now. the economy is running too hot. senator manchin came out today and said it is not transitory. those are words to whitehorse -- white house doesn't want to use. transitory is a temporary word. senator manchin over the summer was talking about a strategic pause. i wonder if it is going to slow down what is happening in washington. it will be a big day for the administration. that second part of the agenda. there will be a lot of hurdles. caroline: the focus as to who will produce all of these chips that we need here the united

states. doing a great job out there. we want to bring it back to a conversation regarding nation -- inflation. food prices are up. a key inflationary pressure. they work to promote safer, healthier supply chains. how? ? hard is that to get >> it is a challenge. i had an opportunity to listen to the president. he talked about bringing food to market. it is more difficult because of increased demand during the pandemic. we maxed out.

that was on top of the average pre-pandemic. we have not seen that demand go down at all. many of the young -- then you can trace back to labor. >> a lot of this is happening as we head into the holiday season. how much more consummate these pressures get? >> we will continue to see them rise. we saw if you'll go of. oil prices go up. we are feeling it across the board. it could go higher before comes back down. romaine: we have seen disruptions.

maybe we have been spoiled as americans. a lot of us are two stores now is not finding our favorite brand. are some of the groceries and retailers holding back certain things because of the price impact? are or they just not able to get their hands on those things? >> there death valley not holding back. once they have them, their shipping to stores. i mentioned the shortage of labor. every step along the way we are underemployed. it is the ability to have the labor necessary to remove those products. in the most sufficient way of the supply chain.

they are getting them out with what they have. caroline: are people having to pay out for the labor? or is it a question of the type of job. what we have these sorts of strains? >> retailers spent up to a billion dollars during the pandemic to provide a safe workplace. they are paying more wages. many of these front-line workers have been on the front line throughout the entire pandemic. a lot of those individuals are starting to make decisions. we have plenty of jobs available.

our responsibility is to explain why. caroline: we will see how that narrative continues. we hope to manage it at a later time. have an enjoyable time while working. we thank you. we have to go back to the making of things. there is no area we can escape inflationary pressures. we look at what is driving that. this is bloomberg. ♪

♪ romaine: today we are focused on the rising cost of food.

we are talking about this. let's talk about fertilizer. most people do not look at that price index. we are looking at it now. it is basically double what it was a year ago. a similar story. what is driving this? >> it has been a rapid crease. nitrogen fertilizer is made from natural gas. we had extreme weather in texas in february. we had some hurricanes come through the golf in november. in september we saw prices rise.

that rapid increase in the cost of production cost about 40% of producers to shut down. >> i'm really concerned about the farmers. are? they able to observe these costs? >> unfortunately we have not seen cop -- crop prices rise in conjunction. they will be paying more on an affordability outlook for fertilizer. caroline: what about the production? where in the world do we need to be looking? >> we are seeing restrictions on product availability in places like china and russia. they are further reducing supply. romaine: particularly with the demand we are getting out of

china. >> unfortunately there is not really many good alternatives. i think farmers will have to cut back on their rates or cut back on what type of crops they plant. caroline: fascinating area to be reporting on at the moment. we thank you so much. it shows you the intricacy. if we have learned anything, we have learned how fine tuned the supply chain. romaine: the interconnectedness. that is what we have to focus on. if one thing goes wrong,

basically the entire supply chain breaks down. you wonder what is the solution. >> and the trade element. limiting these exports. romaine: important to that conversation. this is bloomberg. ♪

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>> silicon valley and beyond this is bloomberg technology with emily chang. emily: i am emily chang in san francisco at this is bloomberg technology. tough times, new disney+ subscribers drilling netflix by a long shot. is disney's streaming se