I’m not sure what word to use for something that’s simultaneously infuriating and enlightening but that was my reaction to this observation by Hirsh Chitkara at Tablet:
In speeches, Biden said the CHIPS Act would produce 1 million construction jobs. It wasn’t until The Washington Post challenged this assertion that the White House admitted its mistake. The correct estimate, even when calculated by industry-backed research groups, was closer to 6,200 jobs — not exactly great bang for your 50 billion bucks. Workers without high school degrees can expect to earn around $48,000 from semiconductor manufacturers — only $8,000 above the median across all industries, and certainly not enough to afford the lifestyle of postwar factory workers. Ironically, the bill has probably been most effective as a jobs program for DC lobbyists, who received a tidy $100 million sum that will undoubtedly do wonders for Georgetown’s cupcake economy.
While reshoring advanced chip manufacturing is a security necessity, it’s not going to facilitate rebuilding the American economy from the middle out. What will?
Laissez-faire won’t do it. What that will do is create more minimum and sub-minimum wage jobs while further enriching those who are already prosperous. I’ve made my view pretty clear. I think we need to produce a lot more of what we consume than we are at present and reduce the pull factors on immigration with tough labor laws that are strictly enforced. What’s your preferred alternative?
Well you know Trump has a history of exaggerating his accomplishments and even outright lying…… wait, not Trump? Well intended mistake.
Lots of young people, maybe even most, are turning to off the books earnings to get by.
This hasn’t escaped notice.
Watch for federal efforts to create an official crypto and eliminate cash.
It will be about as successful as prohibition.
Contrary to myth Prohibition was successful. Rates of alcoholism and violent crime, particularly domestic abuse went down while organized crime did not increase.
I think we should always be suspicious of claims about big numbers of construction jobs. At best they are probably temporary but they also tend to be heavily exaggerated. The permanent (hopefully) jobs created should be the emphasis if we are talking about jobs.
Eliminating cash is an old concept in sci-fi literature. Its not going to happen anytime soon though I think I can go days without seeing anyone under 35 using cash at the grocery store. The new scanners where you can just tap your card are pretty convenient.
Steve
Point is people are evading payroll taxes and the government revenuers won’t put up with it.
How many people get paid in cash anymore? I suspect its a pretty small percentage.
Steve
Some fed agencies are already larding on regs on the Ohio project to push their favorite DEI and ESG goals.
These are project killing moves. One notes that because of taxes and regs California and Colorado legal pot sellers can barely make do, and the illegal sellers prosper
That was obviously what was going to happen. Simple economics tells you that you can’t impose a tax on marijuana while there is a black market alternative.
What will?
Probably, nothing. Many of the components of manufactured goods are dirty and dangerous, at some point. It can be made safer, but it can never be totally safe.
The New Palestine train derailment is an example. Safety can be improved, but with more chemicals being moved to more manufacturing plants, there will be more accidents.
Nuclear power is expensive because of safety. It could be produced a lot cheaper, but I would not live anywhere near such a plant,
Tasty has a point. Some of the manufacturing activities involve icky processes. Or are regulated out of existence for various reasons.
Perhaps a jumping off point would be to look at strategic materials, components and final products. US strategic interests should trump objections that have forced such activities to China and other low labor cost venues. And further, a number of activities involve use of child (practically slave) labor.
What about “the children.” That means you, EVehicle proponents. Look in the mirror.
After years of defending sending those jobs to China its now bad because of the “children”?
Steve
Thank you, Steve, for another incoherent response.
That’s just the norm. Big government progressives confuse estimates of what appropriating money will do with actual accomplishments.
It’s nice to see that some of the most influential pro-government action liberals are acknowledging and trying to come to grips with the lack of government effectiveness. But I think there are too many entrenched interests sucking the blood out of government programs for any kind of major shift.
@Drew
Actually, I think that it is worse. Any new plants, manufacturing sites, transportation routes are not going to be built on the most expensive land, and there will need to be a DEI component in the plans.
I think we may be at the same point as Rome in about 420 AD.
I think the “entrenched interests sucking the blood out of government programs” is why everything the federal government tries to do costs more here than in other countries.
So, given Daves observation, why do other countries do better?
I haven’t pondered it. But I would note if its truly a part of the national fabric then I can’t think of a better argument against large government.
The other countries you talk about have larger governments. Rather than size its function.
Steve