Once again, "industrial policy and re-shoring" needs some documentation. I'm not disputing your assertion but you give nothing but an opinion. What are your parameters that you use to make that statement?
Once again, "industrial policy and re-shoring" needs some documentation. I'm not disputing your assertion but you give nothing but an opinion. What are your parameters that you use to make that statement?
Trump's industrial policy involved slapping a bunch of tariffs on a few key exports, such as solar panels, steel, aluminum and washing machines. This had essentially zero results in terms of actually getting the manufacturers of these exports to reshore production from foreign countries to domestic producers--none of the leaders in these industries migrated new facilities to the states to avoid the tarriffs. (and if he'd have bothered to ask any of the foremost economic advocates of protectionism, they could have told him his policy was lightweight, simpleton stuff that wasn't going to have any real effects)
Biden, on the other hand, passed the CHIPS Act, to subsidize the reshoring of the most strategically important commodity on the planet--microchips. Since then, industry juggernauts like TSMC, Micron and Intel have cited it as a reason they decided to build the factories for their newest, most cutting-edge chips in the states. That's what re-shoring looks like.
That kind of re-shoring does more to contest Chinese dominance in the world's most important industry than anything Trump can point to.
And, if we're going to credit presidents for the secular economic outcomes that manifest in their respective terms, (even though we shouldn't) then just take a look at China's economy. It's running well behind the U.S.'s. Contesting the power of a country like China is a matter of growing your economic and industrial capacity relative to theirs. Not twitter-raging about Xi Jinping and throwing together a poorly thought-through travesty of industrial policy, as Trump's strategy happened to be.
I agree the CHIPS Act seems to be just what we need to compete. Can you tell us how much of the $52 billion proposed has been disbursed and show how the funds were used to bring chipmakers back to the US?
Once again, "industrial policy and re-shoring" needs some documentation. I'm not disputing your assertion but you give nothing but an opinion. What are your parameters that you use to make that statement?
Trump's industrial policy involved slapping a bunch of tariffs on a few key exports, such as solar panels, steel, aluminum and washing machines. This had essentially zero results in terms of actually getting the manufacturers of these exports to reshore production from foreign countries to domestic producers--none of the leaders in these industries migrated new facilities to the states to avoid the tarriffs. (and if he'd have bothered to ask any of the foremost economic advocates of protectionism, they could have told him his policy was lightweight, simpleton stuff that wasn't going to have any real effects)
Biden, on the other hand, passed the CHIPS Act, to subsidize the reshoring of the most strategically important commodity on the planet--microchips. Since then, industry juggernauts like TSMC, Micron and Intel have cited it as a reason they decided to build the factories for their newest, most cutting-edge chips in the states. That's what re-shoring looks like.
https://www.electronicsweekly.com/news/business/has-the-us-chips-act-been-a-success-2023-12/
That kind of re-shoring does more to contest Chinese dominance in the world's most important industry than anything Trump can point to.
And, if we're going to credit presidents for the secular economic outcomes that manifest in their respective terms, (even though we shouldn't) then just take a look at China's economy. It's running well behind the U.S.'s. Contesting the power of a country like China is a matter of growing your economic and industrial capacity relative to theirs. Not twitter-raging about Xi Jinping and throwing together a poorly thought-through travesty of industrial policy, as Trump's strategy happened to be.
I agree the CHIPS Act seems to be just what we need to compete. Can you tell us how much of the $52 billion proposed has been disbursed and show how the funds were used to bring chipmakers back to the US?