Press "Enter" to skip to content

Senate Approves Federal Stimulus for Domestic Semiconductor Production—Can Only Inflation Accrue?

Speaking of federal stimulus and production, after a weather delay last night, the United States Senate today passed the CHIPS-Plus Act, which would spend about $52 billion to stimulate semiconductor production in the United States:

The legislation, those advocates say, is vital for U.S. economic and national security interests in a world increasingly dependent on technological advancement. They also argue the bill could help counteract the effects of a Covid-induced global chip shortage, and put the U.S. on a more competitive footing with China, which has invested heavily in its own chip-making capabilities.

“America invented the semiconductor. It’s time to bring it home,” Biden said during a meeting at the White House on Monday afternoon. The president, who tested positive for Covid last week, participated in the meeting virtually.

The legislation “is going to advance our nation’s competitiveness and our technological edge,” Biden said, urging Congress to “pass this bill as soon as possible” [Kevin Breuninger, “Senate Postpones Key Vote on Bill to Fund U.S.-Made Computer Chips Due to Thunderstorms,” CNBC, 2022.07.25].

Last week, Senator Mike Rounds supported a procedural vote that allowed Chips-Plus to advance; Senator John Thune did not. Today Senator Rounds voted no on the bill itself, as did Senator Thune. Perhaps our Senators share Governor Kristi Noem’s concern that the sole and predictable result of federal spending is inflation, not enduring economic benefits that outweigh temporary side effects as the economy adjusts.

3 Comments

  1. sx123 2022-07-26 14:09

    What a joke. More corporate welfare. These companies are huge and should build there own plants without getting handouts.

    Unbelievable.

  2. P. Aitch 2022-07-26 14:25

    Is Governor Noem going to bring a booming semi-conductor industry to South Dakota?
    It’s kinda her job isn’t it?

  3. Mark Anderson 2022-07-26 15:15

    Republican’s continually wait for Democrat’s to fund them. On the climate they wait for Democatic scientists to bail them out too. Better get busy, no time to waste.

Comments are closed.