[Axios] A manufacturing investment supercycle is starting

If joe has dementia then the entire right wing caucus in congress also has dementia right? Like if someone who is senile somehow outsmarts the opposition then automatically the oppo is senile too right??

 

Inflation reduction act did more than anything else. I'm in Mexico city right now and so many European green energy companies are locating here for the ira subsidies. Battery maker from Sweden are getting 40% subsidies from Mexico rather than usa with free tariffs.

IRA is going transform the landscape. It's all uncapped credited so sky is the limit on cost. Goldman says anywhere from 1-3 trillion in government subsidies will go to manufacturing. Leverage that with 10x capital and you're looking at transformational time period folks aren't grasping with

 

I don't know how investment can continue without direct government subsidies while high interest rates are impacting credit and corporate borrowing all while global inflation is creating a simmering beggar thy neighbor currency war.

Loans are friendly rates are better than direct injections or tax breaks I suppose.

Fingers crossed.

 

Have you seen https://www.whitehouse.gov/invest/?utm_source=invest.gov ? The government is investing in tens of thousands of projects around the country.

The energy loan department has *400 billion dollars in loans* to give out. If it wasn't for the legislation dems passed we'd be in a recession right now and it'd be bad.

 

A manufacturing investment supercycle is starting, with lessons learn from (Trump + WI Gov Scot Walker)'s
failure in developing the FoxConn Globe in Mount Pleasant, Wisconsin

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In 2018, then-President Trump bragged that this facility would be a shining example of MAGA, proof that he could bring back Midwestern manufacturing jobs. Foxconn, the Taiwanese conglomerate, was lured to cheese country by the promise of $3 billion in tax credits if it supplied 13,000 jobs. Local governments and the state spent a further $500 million to secure the land, pay off homeowners and bulldoze their properties, and lay down roads and power to the plant.

After racing through numerous ideas for what to actually make at the facility, currently it houses a small computer server operation and solar inverter company Enphase. Much of the space is being used for storage. There are fewer than 1,000 jobs at the site, more than 90 percent below what was promised.

To say that this white elephant has come to symbolize the failure of Trumpian boasting on industrial policy would be an understatement.



Wisconcin state/county/city Governmental entities gave away scads of public money to FoxConn, who did not fulfilled their promises. There were few if any strings attached, and little recourse if the whole enterprise didn’t pan out.
These were corporate welfare payments that pitted localities together in a race to the bottom for how much to shell out to get some glimmer of hope on job creation.

 

contrast Trump failure to hold Foxconn accountable to Bidenomics approach to hold bussiness accountable to provide high-paying union jobs

Bidenomics’ Indirect Play for a Just Transition to EVs

Thru grants / loans, DOE programs condition funding for retooling factories
on good-paying union jobs in manufacturing communities​

Grants

The Inflation Reduction Act, IRA, included $2 billion in Domestic Manufacturing Conversion Grants for both electric vehicles and component parts. The Department of Energy (DOE) grants would go to retrofitting factories that already assemble vehicles or components, so they can produce hybrid, plug-in electric, or hydrogen fuel cell vehicles. There’s a cost-sharing requirement, but all told the government grant could knock off as much as half the cost of converting a factory.
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Loans

Separately, DOE is offering $10 billion from the Advanced Technology Vehicles Manufacturing Loan Program (part of the bipartisan infrastructure law) for the same purpose.

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Both the grant and loan programs are competitive, meaning that interested companies must apply to earn the funding. Decisions on the winners will be made on the basis of a “scorecard,” with a lot of consideration going to job quality.

Separately, DOE announced a second round of grant funding under the bipartisan infrastructure law for its advanced batteries and battery minerals program, adding another $3.5 billion for companies making batteries for EVs and energy storage. Like the first round, companies will have a better chance to secure these grants if they promise high-quality job creation, union neutrality, investment in communities with historic contributions to U.S. manufacturing, and a skilled, diverse workforce.


This is the antithesis of the Foxconn debacle in Wisconsin, when there were no such workforce carrots, and companies getting the funding could do whatever they pleased with it.

. What elevates the Biden industrial strategy from yet another corporate welfare program is the effort to win tangible benefits for workers and communities with the money invested. That’s intended to help maintain its tenuous public support.

 

Manufacturing chaos and seditious insurrection does not count...

 

Again. Nothing to do with Hunter Biden’s penis. Why is this even newsworthy?