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Biden’s IRA hasn’t saved America Is China benefitting from his flagship policy?

Bernie Sanders as the Senate votes through the Inflation Reduction Act (Kent Nishimura / Los Angeles Times via Getty Images)

Bernie Sanders as the Senate votes through the Inflation Reduction Act (Kent Nishimura / Los Angeles Times via Getty Images)


August 16, 2023   4 mins

The Inflation Reduction Act was supposed to be “one of the most significant laws in our history”. When Joe Biden signed it into law last year, he heralded it as proof that “the American people [had] won and the special interests lost”. As it celebrates its first birthday today, are the American people still winning?

In its main goal — stimulating private investment, chiefly in the renewable energy industry — it has proven to be an outstanding short-term success. Unfortunately, however, on most other counts, this focus on green technology at the expense of other kinds of manufacturing has been a costly mistake. For all the fanfare that accompanied its launch, the IRA is unlikely to meaningfully close the gap in global markets between China’s clean energy exports and America’s, much less in manufacturing as a whole.

In the aftermath of the Covid pandemic and the unveiling of the West’s industrial dependence on China, there was a chance to rally both parties around identifying and reshoring critical manufacturing supply chains. Instead, the Biden administration and its allies in the Democratic Congress decided to spend their limited political capital on creating a slush fund for investors in green energy companies.

One would not know it from the Democratic obsession with a “just transition” away from fossil fuels, but America’s contribution to global greenhouse gases is relatively small and has fallen rapidly over the past two decades. In other words, even if the US achieved Biden’s unrealistic decarbonisation goals, most global greenhouse gas emissions would be unaffected.

Politicians are always vulnerable to the tendency to try to promote multiple unrelated goals with a single piece of legislation. Franklin Roosevelt’s National Recovery Act (1933) had good elements, but collapsed because it tried to stimulate the depressed economy and restructure American industry at the same time. With the IRA, Biden and congressional Democrats indulged in a similar temptation. Here, just one piece of legislation was supposed to accelerate the “green transition” away from fossil fuels to Net Zero, onshore manufacturing supply chains that have been lost to China and other countries, create great numbers of well-paying new jobs, revitalise “left-behind” local communities, and promote racial and gender “justice”.

In practice, this was always going to be too sprawling, premised as it was on a fusion of technocracy and progressive ideology that is already having a surreal impact on the American landscape. In May, for instance, guidance from the Internal Revenue Service on the allocation of a 1.8GW bonus to “low-income communities” divided it up in a manner incompatible with an incentive-based, market-driven energy revolution: 700 MW for low-income communities, 200 MW for Native American communities, 200 MW for facilities on affordable housing properties, and 700 MW for “low-income economic benefit projects”. Elsewhere, the IRA also included $64 billion in funding for Obama’s signature health care programme, the Affordable Care Act. This is neither rational energy policy nor rational industrial policy; it is simply political patronage for Democratic client groups.

Politics, rather than industrial strategy, similarly dictates Biden’s recurrent focus on helping small businesses and new firms. In manufacturing industries characterised by increasing returns to scale — when output increases by a larger proportion than increases to input — bigger firms naturally dominate many sectors, including those the Biden administration seeks to promote, such as semiconductor and pharmaceutical manufacturing. But “big business” is unpopular with the American public and politicians love to shower favours on small business and start-ups, even though few of these have a chance in face-to-face competition with state-backed Chinese corporations and other multinationals.

Paradoxically, too, the attempt to force a shift from oil and gas and nuclear energy to favoured renewable technologies such as batteries, wind and solar panels increases rather than reduces America’s dependence on China. While 13 countries control only 40% of global oil, China is virtually a green energy OPEC by itself: today, more than 60% of the world’s wind turbines and 80% of solar panels and batteries are made in China, which also controls an estimated 90% of the production of rare-earth metals essential in batteries and other green technology.

The implementation of the IRA is helping Beijing in other ways, too, particularly when it comes to the participation of Chinese companies and foreign workers in federal-funded American projects. Members of both parties in Congress, for instance, have criticised Ford for partnering with a Chinese company, CATL, to build a new $3.5 billion battery plant in Michigan. Elsewhere, the Taiwanese firm TSMC, the world’s largest contract chipmaker, has outraged unions by announcing plans to bring hundreds of Taiwanese workers to its new factory in Arizona, which is estimated to be eligible for $15 billion in various federal subsidies derived from the IRA. And this fits in with a broader trend, whereby unionised American workers are being undermined, rather than empowered, by the IRA. Of the dozens of new factories whose construction was announced between August 2022 and March 2023, 83% have been in anti-union, anti-labour “right to work” states, many in the American South and West.

Contrast this with China’s green manufacturing industry, which, according to current estimates, will meet the goals of its plans for wind and solar energy development five years ahead of schedule. Despite the best intentions of the IRA and related initiatives such as the CHIPS and Science Act, in 2030 China will be responsible for 68% of global battery manufacturing, compared to only 15% by the US.

How likely is this to change soon? Not very, if the response of American consumers does not also change swiftly. As long as tax credits for purchases of electric vehicles (EVs) remain the main method of stimulating consumer demand, the beneficiaries will be the affluent, college-educated American overclass: the average EV purchaser in the US is a household with an income of $150,000, more than twice the median. Too expensive for most Americans, even with tax credits, EVs’ share of the US car market has plateaued at around 7%; gas auto sales, by contrast, have surged.

None of this is to doubt the impact of the explosion of investment in new factories as a result of the IRA, and the jobs they have created. After all, if a government pays companies to do things they would not do otherwise, many will gladly change course and accept this largesse. The danger here, however, is that the boom stimulated by the IRA may prove to have been just a sugar high. China is still racing ahead, and it seems unlikely that America will catch up soon. Amid the competitiveness of our new multipolar world, that will require investment in many manufacturing sectors — not just a Green New Deal for batteries, windmills, and solar panels.


Michael Lind is a columnist at Tablet and a fellow at New America. His latest book is Hell to Pay: How the Suppression of Wages is Destroying America.


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Nell Clover
Nell Clover
9 months ago

Biden using his Presidential powers and vast Federal funds to favour associates of him, his family and his party? Associates both in the USA and overseas in China and elsewhere? I’m shocked. There surely were absolutely no warning signs of this when he was Vice President, right? A free and pural media’s coverage of the Presidential election would have revealed any such misuse of power before be became President, yes?

Oh, I remember now. Orange Man Bad. Orange Man Bad. Orange Man Bad. Orange Man Bad. Orange Man Bad. Orange Man Bad.

I’m prone to thinking democracy isn’t working because we don’t get what we vote for. Despite the craven mainstream media’s thinly disguised blanket campaigning for Biden and the demonisation of the Orange Man, there were still plenty of critical voices if you wanted to hear them. In President Biden voters have got exactly what they voted for.

Last edited 9 months ago by Nell Clover
Craig Young
Craig Young
9 months ago
Reply to  Nell Clover

Orange man *is* bad, you dufus. So bad, he made Biden look good.

Craig Young
Craig Young
9 months ago
Reply to  Nell Clover

Orange man *is* bad, you dufus. So bad, he made Biden look good.

Nell Clover
Nell Clover
9 months ago

Biden using his Presidential powers and vast Federal funds to favour associates of him, his family and his party? Associates both in the USA and overseas in China and elsewhere? I’m shocked. There surely were absolutely no warning signs of this when he was Vice President, right? A free and pural media’s coverage of the Presidential election would have revealed any such misuse of power before be became President, yes?

Oh, I remember now. Orange Man Bad. Orange Man Bad. Orange Man Bad. Orange Man Bad. Orange Man Bad. Orange Man Bad.

I’m prone to thinking democracy isn’t working because we don’t get what we vote for. Despite the craven mainstream media’s thinly disguised blanket campaigning for Biden and the demonisation of the Orange Man, there were still plenty of critical voices if you wanted to hear them. In President Biden voters have got exactly what they voted for.

Last edited 9 months ago by Nell Clover
Terry M
Terry M
9 months ago

The IRA is “one of the most significant laws in our history”.
No question about it. It is perhaps the most significant law because it is perhaps the most corrupt and damaging piece of legislation ever passed. It is a pure payoff to Biden’s leftist friends in pursuit of an imaginary concern. On top of all that, it tipped the US into a recession in 2022 (leading to higher borrowing costs for all Americans) and we are due for another one soon.
Let’s go Brandon!

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  Terry M

.
add in the money wasted (sorry, spent) on your military including the $150bn or so to the black market, via Ukraine.. Keeping those 800 bases worldwide must be costly?

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  Terry M

.
add in the money wasted (sorry, spent) on your military including the $150bn or so to the black market, via Ukraine.. Keeping those 800 bases worldwide must be costly?

Terry M
Terry M
9 months ago

The IRA is “one of the most significant laws in our history”.
No question about it. It is perhaps the most significant law because it is perhaps the most corrupt and damaging piece of legislation ever passed. It is a pure payoff to Biden’s leftist friends in pursuit of an imaginary concern. On top of all that, it tipped the US into a recession in 2022 (leading to higher borrowing costs for all Americans) and we are due for another one soon.
Let’s go Brandon!

Thomas Wagner
Thomas Wagner
9 months ago

When Joe Biden signed it into law last year, he heralded it as proof that “the American people [had] won and the special interests lost”.

What he actually meant was “the new special interests won and the old special interests lost — along with the American people.”
Buy the new products, friends — you’ve already paid for half of them. Use your devalued money before it disappears entirely.

Thomas Wagner
Thomas Wagner
9 months ago

When Joe Biden signed it into law last year, he heralded it as proof that “the American people [had] won and the special interests lost”.

What he actually meant was “the new special interests won and the old special interests lost — along with the American people.”
Buy the new products, friends — you’ve already paid for half of them. Use your devalued money before it disappears entirely.

Charles Stanhope
Charles Stanhope
9 months ago

IRA!
How very disappointing, at first glance I was hoping for news on the ongoing war in Ireland. Perhaps something about the scandalous, never ending, ‘show trial’ of Soldier F.
But no, just some anodyne news from our former colonies relating how their ossified leader, one Joe (Ballina) Biden had blundered yet again.

Last edited 9 months ago by Charles Stanhope
Liam O'Mahony
Liam O'Mahony
9 months ago

Amusing Charlie.. yer always worth a read, I’ll give ye that.. me too btw.. I thought I know he’s Oirish but I didn’t know he was senior in the IRA!

Charles Stanhope
Charles Stanhope
9 months ago
Reply to  Liam O'Mahony

Ah Mr Mahony, good to hear from you.
I was in your ‘fair city’ the other day, thanks to the ‘Jack Lynch’ tunnel being closed because of “improvements” as you say.
Sadly the City did seem rather scruffy and down at heel, but it did give me a chance to visit Fort Elizabeth. I must say somebody has done an absolutely splendid job in restoring it to almost pristine condition, and open ‘free of charge.’
Later I popped in on the evocative ruins of Kilcrea Friary to pay my respects to your ancestors, before heading off west.

Last edited 9 months ago by Charles Stanhope
Liam O'Mahony
Liam O'Mahony
9 months ago

You did well.. agus fĂĄilte romhait (and you’re welcome).. enjoy your stay!

Liam O'Mahony
Liam O'Mahony
9 months ago

You did well.. agus fĂĄilte romhait (and you’re welcome).. enjoy your stay!

Charles Stanhope
Charles Stanhope
9 months ago
Reply to  Liam O'Mahony

Ah Mr Mahony, good to hear from you.
I was in your ‘fair city’ the other day, thanks to the ‘Jack Lynch’ tunnel being closed because of “improvements” as you say.
Sadly the City did seem rather scruffy and down at heel, but it did give me a chance to visit Fort Elizabeth. I must say somebody has done an absolutely splendid job in restoring it to almost pristine condition, and open ‘free of charge.’
Later I popped in on the evocative ruins of Kilcrea Friary to pay my respects to your ancestors, before heading off west.

Last edited 9 months ago by Charles Stanhope
Liam O'Mahony
Liam O'Mahony
9 months ago

Amusing Charlie.. yer always worth a read, I’ll give ye that.. me too btw.. I thought I know he’s Oirish but I didn’t know he was senior in the IRA!

Charles Stanhope
Charles Stanhope
9 months ago

IRA!
How very disappointing, at first glance I was hoping for news on the ongoing war in Ireland. Perhaps something about the scandalous, never ending, ‘show trial’ of Soldier F.
But no, just some anodyne news from our former colonies relating how their ossified leader, one Joe (Ballina) Biden had blundered yet again.

Last edited 9 months ago by Charles Stanhope
UnHerd Reader
UnHerd Reader
9 months ago

Isn’t that the wrong pensionable politician in the photograph?

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  UnHerd Reader

Maybe the message is Bernie’s Programs = IRA? ‘cant3see the connection myself through..

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  UnHerd Reader

Maybe the message is Bernie’s Programs = IRA? ‘cant3see the connection myself through..

UnHerd Reader
UnHerd Reader
9 months ago

Isn’t that the wrong pensionable politician in the photograph?

S D
S D
9 months ago

“bigger firms naturally dominate many sectors, including those the Biden administration seeks to promote, such as semiconductor and pharmaceutical manufacturing. But “big business” is unpopular with the American public and politicians love to shower favours on small business and start-ups, even though few of these have a chance in face-to-face competition with state-backed Chinese corporations and other multinationals.”
So the answer for dealing with state-backed Chinese corporations…. is for the state not to back US-based ones?
“Elsewhere, the Taiwanese firm TSMC, the world’s largest contract chipmaker, has outraged unions by announcing plans to bring hundreds of Taiwanese workers to its new factory in Arizona, which is estimated to be eligible for $15 billion in various federal subsidies derived from the IRA. And this fits in with a broader trend, whereby unionised American workers are being undermined, rather than empowered, by the IRA. Of the dozens of new factories whose construction was announced between August 2022 and March 2023, 83% have been in anti-union, anti-labour “right to work” states, many in the American South and West.”
Of course they are going to build factories where labour laws are weaker, you can’t blame businesses for choosing the business-friendly states. Also in a decade that new factory will have benefitted from the Taiwanese expertise, and will have transferred those skills to US workers. That’s pretty much what the west has been doing while exporting jobs to places like India.”
Not a Biden fan, but what else would you expect?

Last edited 9 months ago by samdetzler
P N
P N
9 months ago
Reply to  S D

“
 the answer for dealing with state-backed Chinese corporations
. is for the state not to back US-based ones?”

Yes. Why the need to compete in these chosen industries? Better to allow the Chinese taxpayer to create inefficiencies and for the US (and UK) to purchase the surpluses on the cheap. We don’t need an EV industry, or to make solar panels or wind turbines especially at the cost of taxing other industries more. There are plenty of other industries that can and will drive economic growth, particularly if they do not have to pay more tax to give to bad businesses.

The wind will always be there and the sun will always shine. It’s better to buy solar panels cheaply from China than tax ourselves to death in order to prop up our own solar panel industry making expensive solar panels.

Hardee Hodges
Hardee Hodges
9 months ago
Reply to  P N

China has moved itself into a near monopoly position with certain minerals by capturing the mines. Whether Africa will remain happy about that is an open question given the corruption there. The Chinese exploit corruption while the US “outlaws” foreign bribes. In the long game China may increase pricing and the world will have no counter. The US has plenty of minerals but rejects mining along with the very dirty processing; perhaps US technology can improve processing but that was not part of the IRA.

P N
P N
9 months ago
Reply to  Hardee Hodges

Even more reason not to obsess over net zero. Such obsession can only push us further into China’s influence.

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  Hardee Hodges

Let’s hope Africa gets a much better deal from China and the West, mot least by setting one off against the other. The West cannot moan about China’s involvement given its grossly unfair exploitation of Africa’s resources over centuries..

Charles Stanhope
Charles Stanhope
9 months ago
Reply to  Liam O'Mahony

Come off it Liam old chap, the Chinks will eat them alive!
At least we gave them Law & Order, a Civil Service, a Health system, Education, Roads & Railways, even, God forbid Christianity, and whiskey & soda. What more could you ask for?

Liam O'Mahony
Liam O'Mahony
9 months ago

But it seems you didn’t though did you? You gave them slavery, endless disorder, a corrupt civil service (thanks to puppet tyrant govts), no education (we Irish did that!) and its only since the Chinese came they have real roads, railways, ports, airports etc etc. Between yourselves, the French, Belgians and Germans you robbed them blind, murdered and tortured them at will (similar to but ahead of, N€zÂĄism) …and continued to screw them over using neocolonial tactics.
It’s payback time Charlie.. and so far, China and Russia are the heroes in Africa.. The mono-polar world is in decline and will soon be fully binned. You and your ilk got 500 years of pillage out it so be grateful for that.. Now Africa is on the rise, big time and with BRICS+ behind them they cannot fail
The West is finished and good riddance. As we Irish are harmless and will plead overwhelming pressure from our USUK masters we’ll swap over seamlessly.. Africa will remember our educators and our strategic position in West Europe will ensure our never ending prosperity (which began 50 years after we freed OURselves from the yoke) will continue. I see all my predictions for the GB are coming to pass including the looting – ok I predicted rioting, but don’t be picky, I was close – much more to come too, I’ll warrant! What can I say ..suck it up!

P N
P N
9 months ago
Reply to  Liam O'Mahony

We gave them slavery? Err, no we didn’t. Stopped reading after that. If you can’t get that right then your comment is of no value.

Stevie K
Stevie K
9 months ago
Reply to  Liam O'Mahony

Glad to see you didn’t hold back there one little bit Liam. It’s impressive to see such an untainted record of innocence prevailing, from such an oppressed and ill served land. Like a shining beacon for us all, in this messy and ugly world filled with forced choices and imperfect solutions.

P N
P N
9 months ago
Reply to  Liam O'Mahony

We gave them slavery? Err, no we didn’t. Stopped reading after that. If you can’t get that right then your comment is of no value.

Stevie K
Stevie K
9 months ago
Reply to  Liam O'Mahony

Glad to see you didn’t hold back there one little bit Liam. It’s impressive to see such an untainted record of innocence prevailing, from such an oppressed and ill served land. Like a shining beacon for us all, in this messy and ugly world filled with forced choices and imperfect solutions.

Liam O'Mahony
Liam O'Mahony
9 months ago

But it seems you didn’t though did you? You gave them slavery, endless disorder, a corrupt civil service (thanks to puppet tyrant govts), no education (we Irish did that!) and its only since the Chinese came they have real roads, railways, ports, airports etc etc. Between yourselves, the French, Belgians and Germans you robbed them blind, murdered and tortured them at will (similar to but ahead of, N€zÂĄism) …and continued to screw them over using neocolonial tactics.
It’s payback time Charlie.. and so far, China and Russia are the heroes in Africa.. The mono-polar world is in decline and will soon be fully binned. You and your ilk got 500 years of pillage out it so be grateful for that.. Now Africa is on the rise, big time and with BRICS+ behind them they cannot fail
The West is finished and good riddance. As we Irish are harmless and will plead overwhelming pressure from our USUK masters we’ll swap over seamlessly.. Africa will remember our educators and our strategic position in West Europe will ensure our never ending prosperity (which began 50 years after we freed OURselves from the yoke) will continue. I see all my predictions for the GB are coming to pass including the looting – ok I predicted rioting, but don’t be picky, I was close – much more to come too, I’ll warrant! What can I say ..suck it up!

Charles Stanhope
Charles Stanhope
9 months ago
Reply to  Liam O'Mahony

Come off it Liam old chap, the Chinks will eat them alive!
At least we gave them Law & Order, a Civil Service, a Health system, Education, Roads & Railways, even, God forbid Christianity, and whiskey & soda. What more could you ask for?

P N
P N
9 months ago
Reply to  Hardee Hodges

Even more reason not to obsess over net zero. Such obsession can only push us further into China’s influence.

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  Hardee Hodges

Let’s hope Africa gets a much better deal from China and the West, mot least by setting one off against the other. The West cannot moan about China’s involvement given its grossly unfair exploitation of Africa’s resources over centuries..

Warren Trees
Warren Trees
9 months ago
Reply to  P N

“Taxing ourselves to death” to prop up various politically connected industries is what politics is all about. Using other people’s money to enrich your friends and family is the American way.

Last edited 9 months ago by Warren Trees
Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  Warren Trees

It works in the UK as well, and in most pseudo democracies.. all you need is good propaganda and a gullible electorate and God knows there’s no shortage of those!

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  Warren Trees

It works in the UK as well, and in most pseudo democracies.. all you need is good propaganda and a gullible electorate and God knows there’s no shortage of those!

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  P N

When you buy cheap from abroad and see a better bottom line that is because you omitted some of the figures, viz..
Corporation tax income from mnfrg at home including from several the spin-off firms.
Income tax from wages (mnfrg.+spin-offs) at home.
Social welfare costs if the mnfrg. workers would otherwise be unemployed.
Negative impact on balance of payments.
Carbon costs on transportation from thousands of miles away.
Business selfishly looks only at its own bottom line, short-term; and ignores the big picture. This is how globalisation destroyed the planet.. narrow-minded, selfish bean counters.

Last edited 9 months ago by Liam O'Mahony
P N
P N
9 months ago
Reply to  Liam O'Mahony

Can’t take anything you say seriously after your comment about giving Africa slavery. Sorry.

P N
P N
9 months ago
Reply to  Liam O'Mahony

Can’t take anything you say seriously after your comment about giving Africa slavery. Sorry.

Hardee Hodges
Hardee Hodges
9 months ago
Reply to  P N

China has moved itself into a near monopoly position with certain minerals by capturing the mines. Whether Africa will remain happy about that is an open question given the corruption there. The Chinese exploit corruption while the US “outlaws” foreign bribes. In the long game China may increase pricing and the world will have no counter. The US has plenty of minerals but rejects mining along with the very dirty processing; perhaps US technology can improve processing but that was not part of the IRA.

Warren Trees
Warren Trees
9 months ago
Reply to  P N

“Taxing ourselves to death” to prop up various politically connected industries is what politics is all about. Using other people’s money to enrich your friends and family is the American way.

Last edited 9 months ago by Warren Trees
Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  P N

When you buy cheap from abroad and see a better bottom line that is because you omitted some of the figures, viz..
Corporation tax income from mnfrg at home including from several the spin-off firms.
Income tax from wages (mnfrg.+spin-offs) at home.
Social welfare costs if the mnfrg. workers would otherwise be unemployed.
Negative impact on balance of payments.
Carbon costs on transportation from thousands of miles away.
Business selfishly looks only at its own bottom line, short-term; and ignores the big picture. This is how globalisation destroyed the planet.. narrow-minded, selfish bean counters.

Last edited 9 months ago by Liam O'Mahony
Warren Trees
Warren Trees
9 months ago
Reply to  S D

It’s hard to understand why the author calls right to work states, “anti-labor”. Providing manufacturing jobs to the masses seems like a good idea to me.

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  Warren Trees

..by “masses” do you mean people? And by “…jobs” do you mean poorly-paid jobs? Please be more specific..

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  Warren Trees

..by “masses” do you mean people? And by “…jobs” do you mean poorly-paid jobs? Please be more specific..

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  S D

I’m not convinced that a workforce too stupid and too timid to stand up for itself is all that good for business.. most successful businesses value their smart workers and pay well above the going rate! Slave economies are notoriously low productivity economies.

P N
P N
9 months ago
Reply to  S D

“
 the answer for dealing with state-backed Chinese corporations
. is for the state not to back US-based ones?”

Yes. Why the need to compete in these chosen industries? Better to allow the Chinese taxpayer to create inefficiencies and for the US (and UK) to purchase the surpluses on the cheap. We don’t need an EV industry, or to make solar panels or wind turbines especially at the cost of taxing other industries more. There are plenty of other industries that can and will drive economic growth, particularly if they do not have to pay more tax to give to bad businesses.

The wind will always be there and the sun will always shine. It’s better to buy solar panels cheaply from China than tax ourselves to death in order to prop up our own solar panel industry making expensive solar panels.

Warren Trees
Warren Trees
9 months ago
Reply to  S D

It’s hard to understand why the author calls right to work states, “anti-labor”. Providing manufacturing jobs to the masses seems like a good idea to me.

Liam O'Mahony
Liam O'Mahony
9 months ago
Reply to  S D

I’m not convinced that a workforce too stupid and too timid to stand up for itself is all that good for business.. most successful businesses value their smart workers and pay well above the going rate! Slave economies are notoriously low productivity economies.

S D
S D
9 months ago

“bigger firms naturally dominate many sectors, including those the Biden administration seeks to promote, such as semiconductor and pharmaceutical manufacturing. But “big business” is unpopular with the American public and politicians love to shower favours on small business and start-ups, even though few of these have a chance in face-to-face competition with state-backed Chinese corporations and other multinationals.”
So the answer for dealing with state-backed Chinese corporations…. is for the state not to back US-based ones?
“Elsewhere, the Taiwanese firm TSMC, the world’s largest contract chipmaker, has outraged unions by announcing plans to bring hundreds of Taiwanese workers to its new factory in Arizona, which is estimated to be eligible for $15 billion in various federal subsidies derived from the IRA. And this fits in with a broader trend, whereby unionised American workers are being undermined, rather than empowered, by the IRA. Of the dozens of new factories whose construction was announced between August 2022 and March 2023, 83% have been in anti-union, anti-labour “right to work” states, many in the American South and West.”
Of course they are going to build factories where labour laws are weaker, you can’t blame businesses for choosing the business-friendly states. Also in a decade that new factory will have benefitted from the Taiwanese expertise, and will have transferred those skills to US workers. That’s pretty much what the west has been doing while exporting jobs to places like India.”
Not a Biden fan, but what else would you expect?

Last edited 9 months ago by samdetzler
Tyler Durden
Tyler Durden
9 months ago

China is continuing to commission new coal-fired power stations while continuing to leap ahead as the green workshop of the world (they also lead the world in pumping 30% of its carbon into the atmosphere).
That is the political economic epoch in which we live – a sort of right-on globalisation.
China’s plans for new carbon-emitting powers will supposedly peak in 2030, the year when the developed world was supposed to have eliminated all pollutors from their energy and transport sectors.
The irony is beyond crushing. The same sort that sustains a Biden presidency and his likely re-election as an old gent with dementia.