DeFazio is one of the few lawmakers that will have an overwhelming influence on what Biden can do economically. To call him a proponent of far-reaching economic legislation would be an understatement. He was one of the few members of Congress who voted against Obama’s stimulus package because he thought it was too shy, and last year he helped get a $ 1.5 trillion bill through the house that made huge sums of money for Bahn , Broadband internet and zero emission products included buses and charging stations. (It didn’t pass the Senate.) Big as that price was, he wasn’t averse to raising it. When I pointed out that Biden’s campaign proposal appeared to be spending more on devices like electric vehicles, he was quick to openly accept the amount. But powerful allies always have their own priorities, and DeFazio is no exception. He raved about new bridges and tunnels and talked about the advantages of pedestrian-friendly roads. Then he added this pitch: For less than $ 10 billion, the U.S. Postal Service could convert its delivery vehicles to a fully electric fleet. “The fleet is run down, dirty and falling apart,” he said. “It’s over 30 years old.”
With the Democrats in control of Congress, the problem for Biden may not be getting some version of his economic agenda off the ground, but rather sorting through the sheer volume of inquiries that suddenly come in from hundreds of members and industry groups. For one, California representative Ro Khanna has tabled a bill that will spend $ 100 billion over five years to fund research in industries such as quantum computing, robotics and biotechnology, as well as to position technology centers in deindustrialized areas should be. Most of the “Top 20 universities in the world are American – places like the University of Wisconsin and the University of Michigan that are spread across the country,” says Khanna, who represents parts of Silicon Valley and was co-chair of Bernie Sanders Presidential campaign. “There’s no reason we can’t see next-generation innovation and technology in these communities.”
Wind turbine manufacturers whose supply chain runs through Europe, Asia and Canada are seeking tax breaks for domestic production. This also applies to the solar industry, which currently imports most of its assembled modules from Malaysia and Vietnam. The semiconductor industry has spent tens of billions of dollars upgrading production facilities and building new ones on the grounds that semiconductors are a fundamental technology – much like mechanically engineered stem cells, everything from 5G cellular networks to autonomous vehicles and the Internet supply of things. John Neuffer, the executive director of the Semiconductor Industry Association, says supply bottlenecks during the pandemic have kept minds in Washington focused on the importance of domestic manufacturing.
Many of these proposals – and dozens more, such as spending money on medical device manufacturing, buying e-scooters and other ‘micromobility’ vehicles, building a ‘smart’ pavement that could digitally connect cars to roads – came forward Biden’s campaign on The administration has expressed an interest in pursuing it.
Deese, who oversaw Biden’s economic plans, told me that the priority in industrial support will be those areas where subsidies can encourage companies to spend short-term money on factories and technology that they might not otherwise spend for years. “Pull forward” your investments, as he puts it.
Rodrik, the Harvard economist who approves of industrial policy, says the practice really should be seen as a way to ensure American companies keep innovating, more than a means to tremendously increase employment. However, Deese argues that moving to a cleaner economy – installing solar panels, clogging abandoned oil wells, retrofitting buildings to make them more efficient – will create many new jobs even if the manufacturing facilities don’t produce as many as desired. And he adds that we shouldn’t underestimate the potential of new devices to create jobs either.
As a rough model, he points to a Senate bill, based in part on the UAW electric vehicle paper, that would spend around $ 400 billion over a decade on cash discounts for consumers who buy electric or hybrid cars assembled in the US. The bill, proposed by Senators Chuck Schumer of New York and Debbie Stabenow of Michigan, would also spend nearly $ 50 billion on building charging stations nationally and provide nearly $ 20 billion in subsidies, to help manufacturers build new plants and modernize existing ones. “It’s the basic theory of the case,” says Deese. “Significant incentives for consumers, combined with retrofitting factories and expanding infrastructure.” The deal for manufacturers would be made even more convincing with regulations mandating lower vehicle emissions and a government commitment to buy clean energy and equipment – a process that Biden initiated with a regulation he signed in late January.
