Democrats have been taking various measures to increase manufacturing in the united states.
The CHIPs act passed in July is a 39 billion dollar plan to increase production of semiconductors and more importantly to invest in research and development. The congress also approved 1.2 trillion dollars to spend on infrastructure. The subsidies are mainly for two sectors, clean energy and semiconductors. The main idea is to increase sustainability and reduce dependency on China.
Along with the federal government, states are also providing incentives to carmakers. Recently Georgia over 3 billion to two companies building electric vehicle factories.
Since Biden assumed office manufacturers have 290 billion in investment. Carmakers announced 68 billion worth of projects in 2021 and 2022, the industries biggest boom in decades.
In the long term, as the U.S. takes a hardline stance against China in the form of protectionist policies, what do you think will be the economic outcomes? Will the U.S. win this trade war, or does China simply have the advantage (i.e. natural resources, higher rate of saving, devalued currency, etc.)?
ReplyDeleteI think this is a good thing. With how the used car market looked not long ago and how supply chain issues have affected chips for mostly everything, I think getting back into a boom is important. I believe that infrastructure development as well as investment into R&D is always important for us and I see it positively affecting us.
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