Boeing had to cancel 90 plane orders with millions

For much of the last century, Boeing has been a mainstay of the American economy.

“Boeing is an American icon. As much as IBM, General Motors, Boeing is too,” said Charles Elson.

Elson teaches on the subject of corporate governance at the University of Delaware. He says Boeing’s impact on the economy is huge and when the war in Ukraine affects Boeing, we are all affected.

Moody Analytics reports showed that when Boeing halted production of the 737 Max jet, it could slow GDP growth by up to four tenths of a percent. The GPD or Gross Domestic Product is the total value of goods produced and services provided in a country during a year.

That’s why Elson says it’s worrisome when Boeing announced it had to suspend sales of 90 planes last quarter due to the conflict in Ukraine.

“Anytime you have a significant conflict somewhere in the world that affects your supply chain and affects your customers, it will impact Boeing,” he said.

It sends us back to this GDP growth, in which Boeing plays a part, when it suffers, some of us do too. GDP is an indicator of the proper functioning of the economy. If it is declining or not even growing as fast as it should, that means some or many of us could be hurt economically.

But planes are not the only ones affected by war.

“The most important thing with the Russians is the possibility of having less oil and if there is less oil, oil prices will increase,” said Mac Clouse, an economics professor who watches the price of oil. gases have been skyrocketing ever since, like the rest of us. , since the start of the war in Ukraine, a jump of almost 55 cents according to AAA.

Russia and Ukraine are also the top two wheat producers in the world.

“We’ll see that in food prices, it’s just a little early to see that because we’re not really in the growing and harvesting stage,” Clouse said.

But he warns that war can exacerbate the problems we already have, not cause them.

“The Russian-Ukrainian conflict didn’t cause supply chain problems, it didn’t cause a lot of spending that increased demand in the economy and stimulus packages that increased demand or led to inflation,” Clouse said.

While this may not be the cause of all these problems, the effects are certainly being felt around the world and here at home.