Happy-Talking The Recession | Ep. 1544

Chip Manufacturing

The recent passage of a bill in the Senate aims to bolster domestic microchip manufacturing as a strategic move against geopolitical rivals like China. Ben Shapiro highlights the bipartisan support for this legislation, which allocates $52 billion in subsidies and tax credits to U.S.-based chip manufacturers 1. However, he critiques the additional $200 billion earmarked for scientific research, arguing that innovation in areas like AI and robotics is already thriving in the U.S. without such subsidies 1.

If it were just a $50 billion bill, then I think it would have a lot more support.

--- Ben Shapiro

The bill also proposes creating technology hubs in regions affected by globalization, which Shapiro views as unnecessary federal intervention 1.

   

Geopolitical Strategy

The legislative efforts to enhance semiconductor production are part of a broader strategy to address global threats, particularly from China. Ben Shapiro notes that while the spending is significant, it reflects a growing bipartisan recognition of China's threat to U.S. geopolitics 2. He criticizes the Biden administration's mixed messaging, pointing out the contradiction between discouraging Nancy Pelosi's visit to Taiwan and the need to bolster U.S. manufacturing capacity 2.

At least we're now taking the threat of China a little bit more seriously on a bipartisan basis.

--- Ben Shapiro

Shapiro argues that recognizing China as a global adversary could unify American society and strengthen its geopolitical stance 2.