The bad news just keeps piling up for California.
With factory after factory closing across the state (thanks in no small part to the toxic combination of tariffs and ICE raids), California really could use some good news.
Instead, as supply chains continue to absorb the costs of a slowing economy, more factories are shutting down.
Such is the sad case of the International Paper plant in Buena Park, California, which recently closed and fired 71 workers.
IP manufactures all kinds of paper and cardboard products, many of which are critical for food packaging and transport.
It’s also been shutting down factories all over the country, for a very simple reason: Demand is down and they need to cut costs.
Think about it this way:
The American food industry was already reeling from stubborn inflation and labor shortages…
And then tariffs came and delivered a huge blow to the industry. First, because it reduced foreign demand for American products – we’ve all read about the boycotts – and then second, because the resulting business slowdown has caused American consumers to reduce their spending for fear of a recession.
After all – if a bunch of people you know are losing their jobs, you’re probably going to start tightening your belt too just in case.
Add in the massive disruptions thanks to ICE raids, and it’s something of a perfect storm for food companies.
Of course, when they ratchet back their production, they also cut spending on things like food packaging – extending the ripple effects up and down the supply chain.
So it all makes sense – and it’s still a terrible deal for the hardworking Californians who showed up every day, did their jobs, were loyal… and now have to find new employment.
If you have advice or ideas to share for the newly unemployed, please leave a comment!
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment