Washington, D.C. — A new Center for American Progress report examines how the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act, and the CHIPs and Science Act (CHIPS) together will bolster manufacturing competitiveness in the United States, reduce carbon emissions, and take steps toward a green economy, and elevate wages, training, and equity for workers.
The novel industrial strategy implemented in the Biden administration’s signature economic legislation is potentially transformative for key sectors of the economy. It will upgrade basic infrastructure to meet 21st-century requirements for the entire economy; stimulate significant private sector investment; increase the long-term competitiveness of domestic clean energy, auto, and semiconductor production; and create more well-paying jobs.
Strategic public investment of this scale and significance has not been attempted since the construction of the interstate highway system. The combined public and private investments related to the IIJA, Inflation Reduction Act, and CHIPS are even larger, and the economic effects are potentially as important.
This report reviews in detail why there is a need for an innovative industrial strategy; how the new strategy is structured to overcome market failures and misguided policy; and the scale, direction, and significance of the investments that are being made.
“The new industrial strategy aims to chart a more competitive course for important sectors of the U.S. economy, and we’re already seeing measurable effects. Private businesses are responding to the incentives created by this legislation, investing in semiconductor fabrication, battery plants, and electric vehicle production all across the country. These early signs of success highlight the potential to increase manufacturing competitiveness, reduce carbon emissions, and deliver significant gains to workers now and for years to come,” said Marc Jarsulic, senior fellow and chief economist for CAP and author of the report.
Read the report: “Investing To Be Competitive: The New U.S. Industrial Strategy” by Marc Jarsulic
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