"Modern industry is much better placed to step up and produce more goods that could satisfy demand, however. Trouble is that many factories are in China and the transport to the USA is being choked by bottle necks caused by covid not to mention distribution and all the other covd related choke points. "
In the short run, during a recession or depression or a period of secular stagnation there is excess capacity illustrated 1st, by the accumulation of unsold stock, and thereafter by cuts to production with the firing of surplus workers. That has happened repeatedly in the past and has nothing to do with the technological state of the industry.
The covid situation has indeed caused bottleneck inflation with the question being whether or not that has or will cause also wage inflation leading to a general price increase or inflation for short. Inflation has also a social component, not just the result of money printing.
