Well, I got another one right.
Democrats are going to use budget reconciliation to pass a severely stripped down version of Build Back Better to save face before the midterms.
“Sen. Kyrsten Sinema (D-Ariz.) said Thursday that she plans to “move forward” with a revised version of Democrats’ reconciliation bill after reaching a deal to scale back some of the original tax provisions and beef up climate funding.
Why it matters: Sinema was potentially the last hurdle for Democrats who have been seeking to clinch President Biden’s longtime goal of passing an ambitious package tackling climate change, health care and taxes — renamed the “Inflation Reduction Act of 2022.” …
Between the lines: With Sinema now on board, and Sen. Joe Manchin (D-W.V.) a key negotiator of the legislation, Democrats feel confident they can finally pass their ambitious, Democrats-only reconciliation package. …”
The response will be “meh.”
It is nothing that lots of people will get really angry or excited about like the infrastructure bill that passed Congress. The “Inflation Reduction Act” won’t do much about inflation either. They’ve done other things like making Juneteenth a federal holiday or passing the toothless gun control bill or more recently the CHIPs Act which only wonks will remember in the midterms.
Note: Roe v. Wade, however, has captured the imagination of a swath of liberal voters. The constitutional right to kill babies resonates with the Democrat id in a way that the CHIPs Act doesn’t.
Taiwan imports 80-85% of its natural sand from China. China has stop shipping the sand to Taiwan over Pelosi’s visit. The sand is used to make silicon chips, computer chips. The Chips Act was passed before Pelosi’s trip because they, congress, knew what China would do in response to Pelosi’s visit.
Silicon wafers, the raw substrate upon which semiconductor die are created, are manufactured by many companies around the world — I have no idea where the semiconductor foundries (manufacturing plants) in Taiwan normally get their substrate, but wafers could easily be imported.
https://www.timesnownews.com/exclusive/how-does-chinas-natural-sand-export-ban-to-taiwan-impact-the-world-article-93367438
My point is they, the people in Washington, knew Pelosi’s trip would cause trouble for both Taiwan and America, so they passed the Chips Act.
The first thing mentioned at your link is concrete — unless China plans to interfere with Taiwanese commerce, Taiwan can buy wafers from foreign suppliers — of course it will take a little time to get those supply chains going.
>… so they passed the Chips Act.
Did you read it?
H.R.7178 — Creating Helpful Incentives to Produce Semiconductors for America Act or the CHIPS for America Act
Specifically, the bill provides an income tax credit for semiconductor equipment or manufacturing facility investment through 2026. … The Department of Commerce shall, through the National Institute of Standards and Technology (NIST), carry out a program of research and development investment to accelerate the design, development, and manufacturability of next generation microelectronics, including through the creation of a Manufacturing USA institute for semiconductor manufacturing.
Does the latter part sound reasonable to you? — it doesn’t to me.
Semiconductor process development and manufacturing is, technically, a very sophisticated business requiring great expertise — also a lot of capital.
Offering tax incentives to buy equipment means little unless you have a facility where it can be installed, and you know how to use it.
What America lacks is foundry capacity — independent contract manufacturers.
As I suggested elsewhere (here), it makes sense for the government to approach specific companies that already possess the technical capability, and encourage them (e.g. via a capital infusion and other financial incentives) to enter the foundry business, perhaps via a spinoff (the government can take an equity stake) — the two best candidates are Intel and Texas Instruments.
It’s not clear to me this bill will accomplish anything except waste money trying to get the government involved in semiconductor process development — it seems to me a more targeted approach is needed.
US government wasting money? Surely you jest!
@Robert Browning:
That was very imformative. Thank you, Mr. Browning.
What I don’t understand is why the Chinese didn’t keep things mellow with Hong Kong and try to get their economic system closer to that of Taiwan’s off even Singapore’s.
I always thought that if China got economically powerful enough, and managed to put through enough effective pro-China propaganda, they would be as popular with the elite young of Taiwan as they appear to be with those of the West.
What China is doing seems so unnecessary to me in the long run. I just don’t get it.
Thank you Robert. A measured and informative post!
>… and beef up climate funding.
LOL
link
Sinema graduated as valedictorian from Walton High School in DeFuniak Springs at age 16 and went on to earn her B.A. from Brigham Young University (BYU) in 1995 at age 18. … While employed as a social worker, Sinema completed a Master of Social Work degree at Arizona State University in 1999. In 2004, she earned a J.D. degree from Arizona State University College of Law and started working as a criminal defense lawyer. In 2012, she earned a Ph.D. in justice studies, also from Arizona State.
Nothing but academic bullshit from start to finish — so allegedly a valedictorian, she ends up as a social worker — another midwit woman who has never held a real job or done anything at all to create wealth, yet she has sway over the tens of millions of hard-working Americans who do — who votes for someone like this? — how did this situation where we are ruled by dingbats come about?
Women in politics is a fucking plague — as I said regarding women in e.g. education (link), they are ‘psychologically far more likely to embrace conformity (the ‘latest thing’ … ) and behave like NPCs’.
It’s why Old Testamentists call feminism and our liberal democratic abomination a crime against God…or from a secular perspective a crime against Darwin. Any society embracing this crap will weaken and be conquered by a competing society that doesn’t.
“Inflation Reduction Act of 2022”
At least the Democrats have a sense of humor.
Our so called ” government” has zero relevance really, try as I may, cannot think of one elected official , that I can say, I truly respect…….,
Notice Sinema has the “bitch glasses” on. Liberals suddenly have embraced ugly frames over the last decade. What happened to wire frames or contacts? Liberal women seem to love the more obnoxious ugly looks.