By JD Davidson
As the contamination of Intel’s massive $20 billion chip manufacturing base in central Ohio began weeks ago, local, state and federal officials, as well as President Biden, at Friday’s groundbreaking ceremony, praised Intel’s decision and the administration’s efforts to lure the chipmaker. incentives provided by the chip giant.
Gov. Mike DeWine called the day historic, but the economics professor and Ohio native believes Central Ohio will miss out on $2 billion in state incentives and billions of dollars in federal funding for Intel will benefit little.
Gary Wagner, professor of economics at the University of Louisiana-Lafayette university research dissertation That is, the state’s economic incentives provide little benefit to the state or create significant job growth. Incentives help incumbent politicians secure higher campaign contributions and easier wins, according to the document.
“I grew up in northeast Ohio and think it’s unfortunate that the state and federal government should give such a large taxpayer subsidy to a company. Based on the work of many scholars who have studied these grants, there is little reason to believe that Central Ohio will see more jobs or higher incomes,” Wagner said in Center Square on Friday. “Companies that receive these grants often fail not to produce – Foxconn in Wisconsin is a prime example – and most packages don’t include a clawback clause. That’s not how a free market system should work; it’s the capitalism of cronyism to the highest degree.
In addition to the $2 billion from the state, Recently signed The federal CHIPS Act opened up $52 billion to companies that make semiconductor chips, and another $10 billion to establish regional technology centers across the country.
On Friday, Ohio State University President Kristina Johnson called the CHIPS law a way to level the playing field, and Biden said the legislation was one of the most significant technology investments in history. the United States.
“It’s time to bury the ‘rust belt’ label and call this region the ‘heart of silicon,'” Biden said. “Innovating in Ohio is for America’s future. The Americans invented this chip. Today, we manufacture only 10% of the chips in the world. We need to manufacture these chips in the United States to help reduce costs and create well-paying jobs.
Biden also said the Chip Act made historic investments in companies to build state-of-the-art manufacturing facilities in the United States and created safeguards to prevent American companies from building facilities overseas by allowing the government to withdraw funds.
“The future of the chip industry will be made in America,” Biden said.
Despite praise from Biden and U.S. Senators Rob Portman (R-Ohio and D-Brown) and other members of Congress, including Republican Representative from Ohio Jim Jordan, cronyism. Jordan chairs the House Freedom Caucus.
“The Senate’s CHIPS-Plus Act not only adds $79 billion to the deficit, but is also riddled with crony capitalist relief, Green New Deal climate initiatives, and aggressive ‘wake-up’ policies,” said the caucus in a press release during the passage. Worse still, his time in the Senate — with the help of 17 Senate Republicans — opened the door for more Democratic settlement spending sprees, with $400 billion on liberty priorities. , about $700 billion in tax increases.
Intel also announced Friday that it will provide $50 million to Ohio colleges and universities to create educational programs focused on the computer chip industry, with nearly $5 million going to Ohio State University.
Heads of state said the planned project, which is expected to be completed by 2025, would create 3,000 long-term jobs paying an average of $135,000 a year and 7,000 construction jobs.
“We were doing. What aspects of your life haven’t become more digital, and all digitization runs on semiconductors. As our strategy gets to this point, we’re putting the chips on the table to help America get back to the manufacturing sector. Our partnership in Ohio is off to a great start. It’s an incredible relationship,” said Pat Gelsinger, CEO of Intel. “This great Ohio has this heritage in manufacturing. You all like to build things, and we’re going to build things.
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Originally from Ohio, JD Davidson is a veteran journalist who has worked for newspapers in Ohio, Georgia, Alabama and Texas for more than 30 years. He has worked as a journalist, editor, editor and publisher. Davidson is the regional editor Central place.
Photo “Joe Biden” by White House. “Intel” background photo from David 290.CC BY-SA 4.0.