Now the government is trying to help boost the industry, again, but in fact the government is the cause for its decline. It’s called the CHIPS and Science Act, because our congress is just full of scientists right, no. Biden said the bill is “exactly what we need to be doing to grow our economy right now.” That's wrong. What we need to be doing is lowering taxes and getting the government out of the damn way.
Instead of giving billions of taxpayer money to already struggling companies with wasteful handouts, the USA needs the EPA and other organizations to immediately withdraw any and all regulations applying to chip manufacturing. Also the government needs to stop stealing the income of hard working Americans through taxes. This will enable the citizens to start and operate the most successful chip companies the world will ever see, making all of Asia look like childsplay. We simply need the United States government to stop treading on its citizens through regulation and taxes and Make America capitalist again.
The more centrally planned an industry is, the less productive it will be. What generates wealth, progress and innovation is freedom. The freedom to create, invest, experiment and even to fail and try again. Capitalism is what created computer chips in the first place. The first chip was invented by Jack Kilby right in the great state of Texas in 1958. And he did it with no government handouts or subsidies and absolutely no bureaucrats or EPA telling him what he can and can’t do. The good old days.
The government really got involved in the 80s with subsidies, import limitations, tariffs and organizations like SEMATECH, a government created non profit to promote the chip industry. And the result is, the industry has been declining ever since. So what’s the government's solution today? More government of course! And again it’s not going to work long term. It’s pure crony capitalism aka economic fascism. Bailouts. Giving huge amounts of money to failing companies, especially the ones willing to lobby the most.
A healthy economy needs to let bad companies die so new and improved companies can rise. It’s not about which country makes the chips, its about which company makes the chips. And the country that is most company friendly, aka the government leaves them alone, will get the most manufacturing and innovation. Central planning is how you kill an industry. If you want to unleash the creative juices of productive people, get government out of the way.
Chips are important because they’re essential for your computers, phones, cars, dishwashers, microwaves, TVs and just about anything electronic nowadays. The decline of the CHIP industry is looked at as a national security threat because aside from personal consumption, They’re used for just about everything militarily: Tanks, submarines, drones, advanced weaponry and also computers. This is a big problem due to supply chain issues that can arise like in 2020 that sent the USA into a chip shortage. Also for the fear of China invading Asian countries like Taiwan or other global issues.
Instead of fascist economic policy, the department of defense could just agree to buy chips from foreign countries but include in the deal that they want them made in the USA. I guarantee companies in foreign countries would see all dollar signs and approve that deal. That would bring manufacturing back to America, does not infringe on any freedom and would create tons of high paying jobs. But that requires too much common sense and not enough federal control for our government to do right now. Yes chips are essential for very many industries, but you know what else is essential for industry? Freedom.