Sanders Raps U.S. Semiconductor Bill As Boost For 'Corporate Welfare'

A bill to enhance semiconductor production in the United States has nearly accomplished the unfathomable, uniting democratic socialist Vermont Sen. Bernie Sanders and the conservative right, according to Kevin Freking of the Associated Press (AP) late on July 24, 2022.

Photo Insert: Vermont Senator Bernie Sanders

The package currently being debated in the Senate is a priority measure for the Biden administration. It would add nearly $79 billion to the deficit over ten years, largely through new grants and tax credits to compensate the costs that computer chip makers incur when developing or expanding chip facilities in the United States.

According to supporters, countries all over the world are investing billions of dollars to entice chipmakers.

The United States must follow suit or risk losing a reliable supply of the semiconductors that power the country's automobiles, computers, appliances, and some of the military's most powerful weapons systems.

Sanders, as well as a number of conservative lawmakers, think tanks, and media outlets, believe otherwise. It's "corporate welfare" to them. It’s just the latest example of how using federal funds to assist the private sector can blur traditional ideological divides, resulting in partners on both the left and right who agree on little else.

'They are positioning themselves as defenders of the little guy against powerful interest groups lining up at the public trough.' Sanders said that he has not heard from anyone regarding the need to assist the semiconductor industry.

Voters ask him about climate change, gun safety, women's abortion rights, and increasing Social Security benefits, to mention a few issues. Worse, the United States pioneered semiconductor manufacturing but lost ground when it outsourced production to other countries.

The most prominent rationale given by lawmakers for subsidizing the semiconductor industry is the vulnerability to national security of relying on foreign suppliers, especially after the pandemic's supply chain problems.

According to the Congressional Research Service, Asia accounts for about four-fifths of global manufacturing capacity, with South Korea accounting for 28%, Taiwan accounting for 22%, Japan accounting for 16%, and China accounting for 12%.

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