ICYMI: NEC DIRECTOR SAYS PANDEMIC A “WAKE-UP CALL” FOR U.S. INDUSTRY, UNDERSCORING NEED FOR INVESTMENTS IN U.S. INNOVATION AND COMPETITION ACT
National Economic Council Director Brian Deese emphasized the necessity for targeted public investments in American industries, such as the ones in the U.S. Innovation and Competition Act, which will make America more competitive with China and fund emerging domestic manufacturing projects.
Read key points from NEC Director Brian Deese’s speech:
- […] this pandemic exposed unique economic vulnerabilities. Empty store shelves, shortages of basic medicines, supply chain bottlenecks from computer chips to advanced medical equipment. The acute crisis exposed a long-term hollowing out of our country’s industrial base, occurring over decades.
- Our private sector and public policy approach to domestic production prioritized low, short-term costs over security, sustainability, and resilience. This was the wake-up call.
- And the approach of our competitors and allies has changed. We should be clear-eyed that the idea of an open, free-market global economy ignores the reality that China and other countries are playing by a different set of rules. Strategic public investment to shelter and grow champion industries is a reality of the 21st century economy. We cannot ignore or wish this away.
- Markets — on their own — will not make investments in the technologies and infrastructure that would benefit an entire industry.
This month, the U.S. Senate passed the U.S. Innovation and Competition Act, a $250 billion investment in science, technology, and U.S. manufacturing, which includes:
- A $50 billion investment in semiconductor manufacturing, which will help the U.S. compete globally and address the global chip shortage.
- An $81 billion investment in the National Science Foundation to support research and development in areas like artificial intelligence, robotics, and biotechnology.
- A $10 billion investment in regional technology hubs, a third of which would be located in rural areas.
- A $1.5 billion investment to help spur wireless technologies innovation.
The U.S. Innovation and Competition Act would address the issues laid out by Deese, because it would:
- Invest in American innovation by going big on investments in research, manufacturing, and strengthening American supply chains
- Increase equal access to opportunity by investing in job-training and development through initiatives like rural STEM education
- Bolster U.S. cybersecurity and intellectual property
- Boost U.S. supply chain resiliency by identifying and addressing vulnerabilities in the U.S. and in allied and partner countries
- Provide incentives for domestic production of mature semiconductor technologies, such as for the automotive industry, which will foster the creation of thousands of good-paying jobs for American workers