Protests ragging across the United States have disrupted critical logistical networks for economic and policy. With the far-reaching nature of the demonstrations, this is not a localised incident. Concerning reports around the food supply, fuel supply and also other non-essential goods are being witnessed. For policy-related problems, a large amount of damage has been done to the COVID Response in the United States. The financial flight is causing unintended bottlenecks. Some positives however do exist and these should be noticed.
Burning down all the food:
Protests have burned a large amount of stock to the ground along with the general disruptions of the deliveries. Timetables are damaged, and this will have a knock-on effect. The large scale movement of goods at the moment has not been reported on so how disruption is being handled is still. Cloaked in uncertainty. It is possible that it has been placed into storage and can be pushed into the system when the situation on the ground improvement. This is the ideal scenario as the consequences can be dampened and then stopped from being terrible. However, the worst case is that it has been destroyed. Depending on the level of destruction, new goods may need to be worked out, and alternative parts of the logistical chain created. This would see impacts on the average person with stocks not being provided for everyone.
Increasing the risk for affected areas:
The riots are occurring in many areas that have a controversial and painful history with risk management. Yet with so much property damage, risk assessments will be redone. Insurance prices and the types of cover will likely become more detrimental for the property owners. The spread of the impact is not going to even across the entire country. This fact compounds that many of these areas were suffering from other societal problems. Even assuming the unlikely that nothing occurs in risk management sectors, then investments will likely see a drop. Combined, which is the most likely outcome, then the increase of risk for damaged property is going to cause a large amount of pain.
Flight from these areas:
It is well established and accepted that “white flight” occurs after riots. However, while this may be focused on White Americans, it is also possible that other groups may also move if possible. COVID 19 has already seen the sale of land away from cities increase. The riots add another motivation for an individual of the firm to consider moving away from its current location. Replacing jobs lost due to COVID is at the same time needed. An increase in demand for services is also going to make governments need a rise in funds. These combine as a negative impact.
Cascading failures can also occur
A cascading failure occurs when one element of a complicated system fails, bringing down the entire system. The riots have seen providing law fail, and this then prevented firefighters. If the riots continue then other vital services are going to be lost, and with each service that no longer provided another grows weaker. Due to how spontaneous the rioting outbreaks can be then preparation for the strain on the systems can not occur. The unknowns present in the current riots lead to a structural weakness across the entire system. Not addressing this weakness leaves American society weaker along with the ability to protest and express oneself safely.
Clogging the legal system:
Legal systems, including the prison system, were under strain before the riots. The investigative ability of law enforcement was also not perfect. Dismissing all of the crimes directly associated with riots would still leave problems as opportunist criminals have taken advantage of the chaos. Even a small increase could lead to slowing down of the process or overwhelming it. If this happens then reform of the system or changes of it are not going to occur as well. This can create further problems that then just lead to even more overwhelming.
What are some possible positive outcomes:
Relocation of people to other areas:
This could revitalise struggling areas of the country as people seek new communities and new places to live. The rustbelt and regions of the south have been struggling with people leaving. Perhaps people who lose everything will take up the opportunities of areas and those areas will receive the benefits. People who would have stayed in one place due to it just being what they have known now can use this as a chance for relocation. Hopefully, then these areas that have improvement will be able to help the areas where people have come from, and these moves will not lose wider benefits.
Provide encouragement for reform and renovation:
With some of the areas being damaged its possible that new types of stores and services will be provided in those communities. A large amount of the retail was already struggling, and this may just be speeding up the process of change. This reform is some of the reasons that people are doing the protesting that has created the conditions for rioting. New ways to manage these areas could also be implemented, and hopefully, they deliver excellent results. This riot can be the motivator for change that could assist with the COVID recovery.
A appreciation of interconnected systems:
Our modern society has been built upon an immense amount of systems. The basic functions are impressive with how effective they work. With the riots leading to these systems being damaged and other impacts, it is possible that people will appreciate these systems more. If that happens then, perhaps new insights and people will enter the debate of those systems. These systems can be further improved and maybe even better times will come of this. Like the causes that created the environment, it would be great if something good can come out of this situation.