Merry Christmas to the world, says the United States with its booming economy:
A booming U.S. economy is rippling around the world, leaving global supply chains struggling to keep up and pushing up prices.
The force of the American expansion is also inducing overseas companies to invest in the U.S., betting that the growth is still accelerating and will outpace other major economies.
U.S. consumers, flush with trillions of dollars of fiscal stimulus, are snapping up manufactured goods and scarce materials [Tom Fairless, “Booming U.S. Economy Ripples World-Wide,” Wall Street Journal, 2021.12.21].
Smart fiscal policy is attracting investment, production, and jobs—green jobs:
Businesses are pouring money into the U.S., looking to take advantage of what some expect to be a sustainable increase in demand. In some cases, they are bringing production closer to American consumers, looking to avoid supply shocks related to the pandemic and global trade wars.
Recent U.S. fiscal stimulus “gives us more confidence in the U.S. market. It makes it easier to go into this, and easier for customers to go in,” said Marc Becker, CEO for offshore at Siemens Gamesa Renewable Energy SA, a Spain-based wind-turbine manufacturer.
The company plans to invest more than $200 million to build offshore turbine blades in Virginia, which it says will be the first commitment by a global manufacturer in a U.S.-based supply chain.
…Meyer Burger Technology AG , a Swiss manufacturer of solar modules, plans to build its first U.S. factory by the end of next year, adding to existing production facilities in Germany. That signals a change for the solar industry, where about 80% of production is currently located in China [Fairless, 2021.12.21].
Meanwhile, seven Republican-led states and one Democratic-led state have been depressing that economic boom by not spending the American Rescue Plan Act dollars that are driving this economic growth:
Many states have steered those funds toward replacing lost revenue or economic relief programs, but a handful of mostly Republican states will head into the new year without having spent a dollar from the program. The eight states cumulatively represent roughly $16.5 billion in unspent aid.
GOP controlled governments in Missouri, South Carolina, Georgia, Mississippi, Arkansas, Nebraska and South Dakota have yet to budget their funds, according to the Center on Budget and Policy Priorities, which has tracked state use of the federal aid. Rhode Island, the only Democratic-controlled state yet to budget the funds, is expected to approve a plan in early January when its legislature reconvenes.
GOP controlled governments in Missouri, South Carolina, Georgia, Mississippi, Arkansas, Nebraska and South Dakota have yet to budget their funds, according to the Center on Budget and Policy Priorities, which has tracked state use of the federal aid. Rhode Island, the only Democratic-controlled state yet to budget the funds, is expected to approve a plan in early January when its legislature reconvenes [Bryan Lowry and Jeanne Kuang, “States Have Billions of Federal Covid Relief Aid to Spend. Some Haven’t Spent a Dollar,” McClatchy, 2021.12.22].
Hmmm… maybe South Dakota’s slowness in spending President Biden’s American Rescue Plan dollars is part of why South Dakota’s economy isn’t keeping up with the nationwide economic boom. We can only hope the Governor’s short-sighted caucus doesn’t further delay or sabotage the Governor’s plan to finally invest those ARPA dollars in direly needed infrastructure improvements that will support economic recovery in South Dakota. The rest of the country is spending federal covid stimulus and driving ripples through the world economy; South Dakota needs to catch up and wide that wave of growth, too.