The CHIPS Act Has It All Wrong
The Answer Is Lower Corporate Taxes and Investment in STEM
The less intrusive, more productive way for the Federal Government to stimulate growth in the semiconductor industry is to reduce corporate income taxes. Instead, the Biden Administration believes it to be a better idea to award Federal grants to companies as it announced today.
The United States regularly runs $ Trillion-plus deficits and does not have ANY discretionary capital. Printing money out of thin air is never the answer for any Federal program, as it only causes Dollar devaluation (price inflation) while growing the Treasury debt (now $36 Trillion), thereby hurting Americans.
The Federal Government has no business in private industry, much less subsidizing industries. However, Government subsidization is a good way to pay friends and large donors. Look no further than the Ukraine war. Large Government contractors work diligently to purchase Congressional votes for favorable policies such as the perpetual expansion of NATO, i.e. “the gift that keeps on giving”.
If the Federal Government wishes to invest in the semiconductor industry, it should invest heavily in Math and the Sciences in public schools rather than in soft subjects such as “Social" studies. Replace K-12 indoctrination with STEM and academic rigor. Technology is at a point where ChatGPT and other LLMs can teach math and science. Let us leverage these tools as a force multiplier.