President Biden has slowly but substantially redesigned key parts of the US economy — achievements obscured by COVID, inflation and widespread disenchantment.
Why it matters: Love it or hate it, Biden has bit by bit pumped billions into infrastructure projects, revitalized the domestic semiconductor industry, and accelerated US viral research and vaccine manufacturing capabilities. He may be on the cusp of the largest domestic clean energy plan in US history.
Between the lines: Interestingly, it all has an America First twist: drill more oil here… fix the infrastructure here… move chip manufacturing here… increase manufacturing jobs here… make vaccines here.
What is going on: Biden hasn’t done a dazzling job explaining this to the public. And it’s possible that no amount of explanation can excite people as prices rise and viruses spread.
- It’s also clear his early binge eating helped exacerbate inflation — the overshadowing topic of the day.
At the same time, the re-engineering of specific sectors is very drastic — and expensive. Enjoy the details:
- The $280 billion CHIPS and Science Act — which Biden will sign soon after the House and Senate passed it last week — provides subsidies, tax credits and other incentives to manufacture computer chips in the US. The White House says it will eventually lower the price of cars, dishwashers and computers.
- Biden could have another huge win with the climate plan secretly negotiated by Senate Leader Chuck Schumer and Senator Joe Manchin. The package would offer new tax credits for buying EVs – plus discounts for buying efficient appliances and weatherproof homes, and tax credits for heat pumps and rooftop solar panels.
- Biden’s $1 trillion infrastructure bill to rebuild roads, bridges and railroads is one of the largest packages ever signed by a president.
- The Biden administration said it will pump $3 billion into the vaccine supply chain, create thousands of jobs in the US and help prepare for future threats.
- Electric vehicle production is growing in the US, with GM and Ford announcing plans for massive auto and battery plants in the Midwest and Appalachians. Fun fact: GM’s Mary Barra, who also chairs the Business Roundtable, is the CEO who has hosted this White House the most.
Thought bubble: These developments required duality—something Biden promised but gets little credit for, as these thin bands of Republican support are nothing like traditional duality.
it comes down to: Not only has Biden landed these economic measures and a gun control bill, but same-sex marriage protection is getting closer — baby steps, but in a once-unthinkable direction.