BOHICA: Bend over, here it comes again…
It is one thing to offer semiconductor chip makers assistance to return their operations to the United States from vulnerable venues like China, Taiwan, South Korea, Singapore, Malaysia, and the Philippines; it is quite another to use these subsidies as a political quid pro quo.
While speaking on a panel with the Council on Foreign Relations on Jan. 23, 2018, then Vice President Joe Biden confessed to extortion and a quid pro quo in a recorded speech.
"I had gotten a commitment from Poroshenko and Yanukovych that they would take action against the state prosecutor and they didn't. So they were walking out of the press conference, and I said we were not going to give them the $1 billion. They said you have no authority. You are not the president. The president said ... I said call him," Biden said. "I'm telling you, you are not getting $1 billion. I said you're not getting $1 billion and I am going to be leaving here in six hours and if the prosecutor is not fired you are not getting the money. Well, son of a bitch -- he got fired."
President Joe Biden appears to be setting the stage for an even more audacious move to leverage a massive $280 billion subsidy to the semiconductor industry to affect the 2022 and 2024 elections. Probably not planned by Biden himself, but the cadre of Obama acolytes that serve as his minders.
From the Wall Street Journal…
Semiconductor Subsidy Strings Attached
Biden makes clear he’ll be telling CEOs how to invest the federal money.
The Senate on Tuesday voted 64-32 to advance a $280 billion “chips plus” subsidy bill, and as ever in politics there’s a lot of plus. Money from Washington always comes with strings attached, and we hope the semiconductor CEOs know what they’ve signed up for.
That message couldn’t have been clearer from President Biden on Tuesday when he told business and labor leaders on a conference call that the bill’s $52 billion in grants for Intel and other chip makers would not be “a blank check to companies.” The President said he will “personally have to sign off on the biggest grants.”
Hint to companies applying for money: Locate that new factory in a swing state with more than a handful of electoral votes. Mr. Biden or the Vice President may want to swing by during the 2024 election campaign.
The President also underscored that the law requires companies to pay union prevailing wages to build the semiconductor fabrication facilities funded by the bill. Communications Workers of America president Chris Shelton said this will ensure “there isn’t a race to the bottom.” Translation: Construction will be more expensive, and non-union contractors won’t benefit.
Some companies that lobbied for the bill have nonetheless expressed frustration that it forbids recipients of federal largesse from expanding advanced-chip production in China. But what did they expect? The politicians are selling the bill as a national-security necessity to compete with China to make sure that more chips are made in the U.S. in case of conflict with Beijing.
Mr. Biden also made clear his Administration will impose its own conditions on the money. For instance, “we’re not going to allow companies to use these funds to buy back stock or issue dividends.” Mr. Biden threatened to claw back subsidies from those that do. This means companies that take federal money won’t be allowed to reward shareholders if the investments succeed.
The President also noted that companies whose future innovations derive in part from the bill’s $200 billion in authorized spending on research and development in areas like green energy and artificial intelligence will be required “to deploy that technology” and invest “in a facility here in America.” This requirement will make CEOs add a political calculation to their investment choices.
Industrial policy and the political allocation of capital invariably distort investment. Don’t be surprised if the conditions that Congress and the Administration impose on these companies make the firms and the United States less competitive with China. <Source>
If the transition of semiconductor chip fabrication facilities back to the United States made economic sense, the chipmakers would have made the move themselves using investor funding.
Enabling corruptocrats like Biden and the progressive communist democrats is a prescription for more political corruption that can be targeted against the United States and benefit our communist enemies, especially China, which has infiltrated the Congress and Executive Branch.
Don’t expect accurate accounting or honest oversight of the political giveaway.
We are so screwed.
“Nullius in verba.”-- take nobody's word for it!
“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw
“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius “A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell “Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar “Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS
“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS