[HN Gopher] Senate passes bipartisan bill to subsidize U.S.-made...
       ___________________________________________________________________
        
       Senate passes bipartisan bill to subsidize U.S.-made semiconductor
       chips
        
       Author : lettergram
       Score  : 286 points
       Date   : 2022-07-27 18:40 UTC (4 hours ago)
        
 (HTM) web link (www.washingtonpost.com)
 (TXT) w3m dump (www.washingtonpost.com)
        
       | snikeris wrote:
       | I guess inflation isn't a concern after all.
        
         | yonaguska wrote:
         | When you can hedge against inflation with insider trading, no.
         | It's not your problem. It's just a problem for the little
         | people.
        
       | lettergram wrote:
       | I disagree that subsidizing R&D to a few companies is going to
       | make us more competitive.
       | 
       | Look at GE or Boeing, it didn't work out.
       | 
       | What works is a free market. Raise import costs on CPUs and
       | you'll incentivize building in the US and more companies to form.
       | It costs $0 tax dollars and brings in revenue and high paying
       | jobs. Similar to what we did with car manufacturing.
        
         | connicpu wrote:
         | Tariffs on products we don't have immediate domestic
         | manufacturing capacity for will hurt the economy in the short
         | term, which is not a great move during a period of rising
         | inflation. It's a tough decision though, because it does feel
         | like the better move for the long term.
        
           | lettergram wrote:
           | The US still produces a lot of computer chips...
           | 
           | Intel is still a very large player in chips and dominate in
           | some areas. Even TI which has tons of fabs (not highest end)
           | as well. I don't really understand this.
        
             | Buraksr wrote:
             | TI's fabs are mainly focused on analog, so the requirements
             | are a bit different. IIRC we have 3 130-65nm layers for
             | digital in our mixed signal designs which is roughly on par
             | with a the process technology Intel used in 2005.
        
               | anfilt wrote:
               | The majority ICs used for products and such do not need
               | bleeding edge node sizes.
        
               | Buraksr wrote:
               | True. That is part of the reason why only 3 of maybe
               | 30-60 layers are that small.
               | 
               | Analog gets some signal integrity benefits from larger
               | transistors, and often we have fairly large fets for low
               | rdson and high voltage tolerance.
        
             | wildzzz wrote:
             | Relatively few consumer electronics use Intel chips. Even
             | in the devices that do use Intel chips, it's one Intel CPU
             | versus dozens of others.
        
           | mminer237 wrote:
           | I agree tariffs are the right long-term move. I think they
           | just have to be implemented gradually. Just increase it by 4%
           | per year for the next 10 years.
        
           | acchow wrote:
           | > Tariffs on products we don't have immediate domestic
           | manufacturing capacity for will hurt the economy in the short
           | term
           | 
           | I suppose you could announce tariffs which will take place 5
           | years down the line? And ramp it up over time?
        
             | judge2020 wrote:
             | Congress offloads imposing tariffs to the executive branch,
             | so they'd need to take it back to do that. Otherwise, it's
             | just a countdown for the industry to donate enough to the
             | opposing political party's PACs to get them in office and
             | repeal the looming tariffs.
             | 
             | ie. the current bill only passed because both political
             | parties are fine with giving companies government money.
        
             | [deleted]
        
         | Cuuugi wrote:
         | "What works is a free market. Raise import costs on CPUs and
         | you'll incentivize building in the US and more companies to
         | form."
         | 
         | Is the market really free with tariffs?
        
           | chalst wrote:
           | No, lettergram is misusing the term 'free market'. Free
           | marketeers don't just want less government enterprise, they
           | also want lower tariffs and light regulation.
        
           | thomastjeffery wrote:
           | Could a market be free without tariffs? Does free not imply
           | competitive?
           | 
           | US policy can't force South Korea or Taiwan to have a free
           | market. No matter what we do, any domestic company has to be
           | able to compete with Samsung and TSC. Because of that, there
           | is no purely "free" global market.
           | 
           | Either you change the rules at the border (tariffs), you
           | match your competitors' strategy (subsidize), or you lose.
        
           | wbsss4412 wrote:
           | It definitely isn't, but at this point "free market" has been
           | watered down so heavily it gets used improperly all the time.
           | 
           | It's more of a political slogan than an actual policy.
        
             | LMYahooTFY wrote:
             | A "free market" isn't borderless. There's virtually no
             | precedent for that.
        
               | haroldp wrote:
               | Commerce between the States?
        
           | Ajedi32 wrote:
           | Obviously it's less free with tariffs than it would be
           | without, but given the goals of the bill _some_ level of
           | interference is unavoidable. The question is whether to meet
           | those goals with top-down central planning, or by tweaking
           | the incentives and letting the market handle the details on
           | its own. The latter is much more in keeping with free market
           | principles than the former.
        
           | lettergram wrote:
           | Yes it is, there's always been taxes. Free market typically
           | refers to regulations, free commerce (means ability to buy
           | and sell), etc. that doesn't mean no taxes, particularly
           | tariffs.
           | 
           | The US federal government was initially only able to make
           | revenue from tariffs. Basically you control the borders, but
           | inside the borders there are no control (ie free market).
           | Once you deal between nations, you cannot have a perfectly
           | free market, else your enemies will eat you. Which imo is
           | what happened the last 50 years.
        
             | Dracophoenix wrote:
             | A tariff is a regulation. Tariffs are the interstate
             | commercial equivalent of Pigovian taxes. When the
             | government puts its thumb on the scale of what should or
             | shouldn't be sold with an extra cost attached, that is not
             | a free market.
        
             | [deleted]
        
         | clairity wrote:
         | i'm with you that a tariff scheme is better than giving money
         | to large corps, which always puts money in the pockets of the
         | already rich rather than into creating customer surplus and
         | driving innovation. there is a (mostly front-loaded) cost, but
         | there is also a clear net benefit in the long run. the tariff
         | scheme just needs to be graduated (both on and off) and based
         | on industry milestones. if it isn't ramped down as soon as
         | feasible, then it becomes a overly-depended-upon subsidy and a
         | market distortion masking price signals instead.
         | 
         | because we know there is a large and likely growing demand for
         | semiconductors, it's not a very risky bet for us to be
         | subsidizing it via trade restrictions for some finite amount of
         | time.
        
         | CamperBob2 wrote:
         | _What works is a free market. Raise import costs_
         | 
         | Well, which do you want? You can't have both.
        
           | taneq wrote:
           | Internal free market mechanics with macro somewhat controlled
           | by regulation. Sort of like a commercial Hunger Games.
        
         | oofbey wrote:
         | Undoubtedly this is a massive gift from taxpayers to Intel.
         | Hard to see anything good in that.
         | 
         | I also agree that subsidizing R&D isn't a reliable strategy to
         | make us more competitive. Government incentivizes to find
         | solutions works much better.
         | 
         | BUT building high-end fabs is SO very capital intensive, that I
         | think this actually could work out. This might actually be a
         | case where the skids need to be greased a bit (to the tune of
         | billions of dollars) to get them over the hump and back in the
         | game.
        
           | onepointsixC wrote:
           | What's the alternative? SK is subsidizing Samsung by more
           | ($450 Bn)[1]. China is doing the same. [1]:
           | https://www.bloomberg.com/news/articles/2021-05-13/korea-
           | unv... [1 Non paywalled]: https://archive.ph/9Gs8q
        
         | gscott wrote:
         | > What works is a free market.
         | 
         | If such a thing existed then you would be right.
        
           | kube-system wrote:
           | Unfortunately, this is true. We have to subsidize the
           | industry because other countries are subsidizing them. We
           | can't compete on a level playing field because there isn't
           | one.
        
         | nyc_data_geek1 wrote:
         | Consider that semiconductor fab has a very high barrier to
         | entry in that the cost and time required to bring it online.
         | 
         | No company presently appears to be poised to build out
         | significant domestic chipmaking capability as far as I know.
         | 
         | I believe that this is where subsidization makes sense, because
         | if we wait for the free market to catch up to the shortfall in
         | supply created by raising import costs, it will ultimately take
         | longer to get the manufacturing capacity online.
        
         | [deleted]
        
         | analognoise wrote:
         | There is no such thing as "the free market" - it's this
         | mythologized idea that people keep pushing, usually to damage
         | workers so they can ship jobs offshore.
         | 
         | If anything, the more something resembles a "free market", the
         | worse it is - you don't think Intel wouldn't poison the water
         | supply if it juiced the Q4 earnings?
         | 
         | It's always more economical to just dump the toxic waste into
         | the local river. If anything these subsidies even the playing
         | field for people who don't think that's a good idea.
        
           | Bloating wrote:
           | There are absolutely free markets, usually small, niche, some
           | under ground. Just because you don't see it, doesn't mean it
           | doesn't exist. The world, and its economies, are more complex
           | then you, I or anyone on this board can comprehend
        
           | lettergram wrote:
           | Lol the whole point of the US design was to allow the free
           | market internally. Externally it was designed to be
           | protectionist.
           | 
           | I agree "free market" today is insane. Initially the federal
           | governments only source of revenue was tariffs, so it would
           | protect domestic production. This makes the US independent
           | and wealthy.
           | 
           | You can't have an international "free market" system unless
           | you don't want to protect domestic production. Which imo is
           | what the US did starting in the 70s until today.
        
             | krainboltgreene wrote:
             | > Lol the whole point of the US design was to allow the
             | free market internally
             | 
             | Dear reader, this was not true in any shape.
        
               | selimthegrim wrote:
               | Compared to Articles of Confederation?
        
             | andrekandre wrote:
             | im not sure thats true, but putting that aside, why do you
             | feel it cant scale across national borders?
        
           | snikeris wrote:
           | "The General Market's mechanisms are always operating - even
           | when governments like to believe they've overruled it. For
           | guns and bombs and red tape and regulations can only obstruct
           | a consumer's quest for what he wants; they can never destroy
           | his insatiable desire to improve his life and enjoy greater
           | mental well-being.
           | 
           | The self-interest of each human being, his continual search
           | for whatever he wants, is a natural law. Governments can make
           | it difficult for him, but their roadblocks only cause him to
           | seek other avenues in order to get what he wants.
           | 
           | As a result, the General Market will always triumph
           | eventually whenever there's a conflict between consumer
           | desires and government interference. And it's vitally
           | important to understand this. For it's the reassertion of the
           | market's sovereignty as the ruler of the world that's causing
           | today's economic upheavals."
           | 
           | - Harry Browne 1974 (but just as relevant today).
        
             | andrekandre wrote:
             | > The self-interest of each human being, his continual
             | search for whatever he wants, is a natural law.
             | 
             | it is?
        
             | disintegore wrote:
             | This looks like an appeal to nature, concerning a form of
             | conduct that could just as well be conditioned in
             | individuals.
             | 
             | It also seems to place the government in direct opposition
             | with the wants of consumers, without acknowledging at all
             | the fact that markets are just as often made unfree by the
             | actions of its private actors.
        
               | snikeris wrote:
               | > the fact that markets are just as often made unfree by
               | the actions of its private actors.
               | 
               | Example please.
        
               | disintegore wrote:
               | There are countless examples of anticompetitive conduct
               | going all the way back to prehistory. The legal
               | vocabulary around it pretty extensive.
               | 
               | Since this is HN though maybe these will ring a bell :
               | 
               | * Intel's rebate program (https://www.ftc.gov/news-
               | events/news/press-releases/2010/08/...) which ended up
               | with a $1.2B payment to AMD
               | 
               | * Microsoft's notorious antitrust case (https://en.wikipe
               | dia.org/wiki/United_States_v._Microsoft_Cor....)
               | 
               | * AT&T abusing its monopoly status and being broken up
               | (https://en.wikipedia.org/wiki/United_States_v._AT%26T)
               | 
               | Honestly this is such an obvious notion that the fact
               | that you're asking for examples is suspect on its own.
        
         | closedloop129 wrote:
         | How do you prevent companies from avoiding the import costs by
         | building their data centers in Canada?
        
           | sbf501 wrote:
           | That's exactly what they do. That is why Intel has a Fab in
           | Ireland.
        
         | Bayart wrote:
         | Industries that heavy in frontloaded capital expenditures (like
         | chip manufacturing) fare better with government support.
        
         | bpodgursky wrote:
         | Uh I mean yes Boeing is kind of a mess right now, but it's
         | ridiculous to argue that having Boeing based in the US isn't an
         | enormous strategic advantage.
         | 
         | Can you imagine a world where US airlines had to depend on
         | either Airbus or Sukhoi planes? Do you really think that would
         | be better?
        
           | acchow wrote:
           | > Can you imagine a world where US airlines had to depend on
           | either Airbus or Sukhoi planes? Do you really think that
           | would be better?
           | 
           | Are we going to pretend 737MAX wasn't grounded for a year and
           | half after 2 devastating crashes killing 346 people? I think
           | a world without Boeing would have been clearly better?
        
             | ApolloFortyNine wrote:
             | >Are we going to pretend 737MAX wasn't grounded for a year
             | and half after 2 devastating crashes killing 346 people? I
             | think a world without Boeing would have been clearly
             | better?
             | 
             | I seriously think you should consider reading the history
             | of air travel, they don't say "regulations are written down
             | in blood" for no reason. There's been many an accident due
             | to a mechanical fault that's eventually remedied.
             | 
             | Its a tragedy but you seriously have to take a breath and
             | think a little. If you want to get into a pissing contest
             | over aircraft manufacturers, the air France 447 (airbus
             | plane) crash was largely caused by the inputs being
             | averaged together. On a Boeing plane, the inputs are synced
             | (one side pushes down, the other side goes down as well).
             | Maybe we should eliminate airbus as well.
        
               | lazide wrote:
               | Big difference between a mechanical fault and what
               | appears to be regulatory capture from a monopolizing
               | entity causing a very sketchy product to be approved in a
               | safety critical role - which then kills a lot of people.
        
               | themaninthedark wrote:
               | >Big difference between a mechanical fault and what
               | appears to be regulatory capture
               | 
               | You can't call Airbus's design decision to average the
               | inputs a "mechanical fault", somehow that got approved by
               | regulators.
               | 
               | You are damning Airbus with the same attack you are
               | aiming at Boeing.
               | 
               | The 737-MAX crashes are absolutely horrific and how the
               | FAA responded was terrible. The design was shit and
               | should have had better review, same for Airbus and what
               | caused France 447.
        
             | nrb wrote:
             | Perhaps, if you completely write off the breathtaking
             | economic impact of the manufacturing and operation of
             | Boeing products since its inception.
        
           | lettergram wrote:
           | I don't think subsidizing them has been a success. I think
           | tariffs and awarding contracts to the best domestic
           | manufacturers are the way forward. That's why SpaceX took
           | off, they won contracts.
           | 
           | Boeing effectively lobbied to regulate others out of
           | existence. Bought off who they could, then won grants and
           | contracts because there was no one else.
        
             | 7thaccount wrote:
             | As they say "competition is for losers". They've all
             | figured that out lol.
        
               | taneq wrote:
               | Sun Tzu would say you don't take to the battlefield
               | unless you have already won.
        
             | bumby wrote:
             | _That's why SpaceX took off, they won contracts._
             | 
             | Can you elaborate? How was Boeing subsidized in this
             | instance and SpaceX not? It's my understanding that it was
             | closer to the other way around. Both Boeing and SpaceX won
             | commercial crew contracts, but Boeing (at the time) had a
             | stronger track record. It was a strategic move by NASA to
             | not put all their eggs in one basket and it worked out well
             | by subsidizing the early dark horse (SpaceX).
        
             | bushbaba wrote:
             | Government spending could require multiple vendors.
             | Encouraging at least a duopoly.
        
             | nyc_data_geek1 wrote:
             | Maybe a combination of the approaches. I might actually be
             | in favor of raising import costs if there were a guarantee
             | of some sort that the resulting funds would be applied to
             | jumpstarting domestic chipfab capabilities, specifically to
             | overcoming the initial capital intensive investment
             | required to get started.
        
       | mwattsun wrote:
       | We support strategic defense industries [1] in the U.S. so I
       | don't understand how offshoring chip making was ever allowed to
       | happen
       | 
       | [1] As a former sub sailor, I'm aware that we kept submarine
       | building capability afloat at New London, CT and Newport News, VA
       | even when there is no current demand, but this was long ago and
       | may no longer be true
        
         | abvdasker wrote:
         | That's capitalism, baby! It turns out domestic chip fabrication
         | wasn't competitive (in this case a rare double-whammy of
         | failing to compete on both cost and capability). The global
         | market determined that Taiwan and South Korea made the best and
         | cheapest chips so that's where all the manufacturing went.
         | Demand for semiconductors is overwhelmingly not created by the
         | military so it doesn't really make sense to compare it to
         | submarines.
        
           | mwattsun wrote:
           | > Demand for semiconductors is overwhelmingly not created by
           | the military
           | 
           | That may be true, but semiconductors are absolutely crucial
           | to the military. I suppose the military has their own fabs
           | locally located in partnership with Intel, AMD, IBM, TI,
           | etc...
        
       | fabfabfab wrote:
       | Fab guy here. This is excellent news and much needed, but
       | vigilence is needed to make sure it doesn't end up being devoured
       | by crony corporate agenda and it actually results in favorouble
       | pro-US climate for semiconductor manufacturing.
       | 
       | I'd like to share personal experience with how we bankrupted
       | American leadership in cutting edge nodes. Although, it is not
       | lithography related, I was part of a few billion $ ROI program
       | where we'd hot test the chip for binning, best I don't disclose
       | too many details. Let's just say, it was critical so much so that
       | I sat in unmarked buildings. I saw that get transfered under my
       | personal watch to China. We had Chinese employees visit US for 6
       | months at a time and during this rotation, we'd teach them
       | _everything_. Had to take a Chinese culture course. Process
       | charts, metrics, drawings and schematics, whitepapers, how
       | everything works, be part of troubleshooting process and then
       | test them for their acuity. This was around 2012-2014. Usually,
       | US semiconductor manufacturers do not transfer fab capabilities
       | to China, only assembly /packaging. But, here, the was a clear
       | violation of backend fab activities that were transferred to
       | China and built out. I visited China for 3 months to get things
       | up and running. This was a brand new process that _no one_ in the
       | world has. All custom equipment from a major Japanese equipment
       | manufacturer. This process was so insane that it took 10 years of
       | development internally to come to this point. Even today, in
       | 2022, no one has replicated it.
       | 
       | This should not have happened IMO from a national security
       | standpoint. But, these things continue to happen and US gov does
       | not have enough insight into America's semiconductor industry
       | when it comes to protecting IP. Far too many things do not
       | require ITAR and are exported without oversight.
       | 
       | I am pretty much against over-regulation, but here there needs to
       | be strict regulation for exporting any semiconductor technologies
       | whether it is fab or assembly or what have you. The entire
       | industry needs to be hamstrung with export control.
        
         | jacquesm wrote:
         | It sounds to me as though that would be closing the barn after
         | the horse has bolted.
        
           | fabfabfab wrote:
           | A new horse is heading to Vietnam. There is still opportunity
           | to stop it.
        
       | alexb_ wrote:
       | For your convenience, the text of the bill is here:
       | https://docs.house.gov/billsthisweek/20220725/BILLS-117HR434....
       | Relevant text for semiconductor funding is on page 10.
       | 
       | The bill says "for section 9902/9906 of Public Law 116-283". This
       | can be found on page 1460 here:
       | https://www.congress.gov/116/plaws/publ283/PLAW-116publ283.p...
        
         | nceqs3 wrote:
         | King!
        
       | samstave wrote:
       | When will senate pass a technological test.
       | 
       | Lets make these blokes take a MINIMAL entry level exam;
       | 
       | * What is a data base
       | 
       | * What is personal identifiable identification and why does it
       | mattter
       | 
       | * What does a walled garden mean
       | 
       | So many functionally identifiable comms
       | 
       | These fucking morons cant even state the above.
       | 
       | De-Seat them all.
        
         | nitrixion wrote:
         | I don't mean to be rude, but your list of questions is a
         | perfect example of why this type of test would be meaningless.
         | 
         | * What is a data base - Are you asking what type of military
         | base stores data? Or did you mean database?
         | 
         | * What is personal identifiable identification and why does it
         | matter? - Do you mean PII (personally identifiable
         | information)? Or are you talking about a driver's license?
         | 
         | * What does a walled garden mean - Are you talking about what
         | is in my back yard? What is around a castle? Or Apple's App
         | Store?
        
         | mjevans wrote:
         | I agree at least half of the lawmakers probably couldn't
         | correctly (enough) answer those questions.
         | 
         | Though there are a number of really savvy ones like Wyden
         | (D-OR) https://en.wikipedia.org/wiki/Ron_Wyden That senator has
         | done good work, even if I don't live in Oregon anymore.
        
         | kube-system wrote:
         | People in leadership positions don't necessarily need to be
         | domain experts to be good leaders. The problem with Congress is
         | money, not a lack of domain expertise. A leader with the right
         | incentives, without domain expertise, knows how to ask
         | questions to the right people.
         | 
         | Your congressperson doesn't know what a database is because
         | they don't care, not because they're dumb.
        
       | fmakunbound wrote:
       | Should have put it into fundamental STEM education
        
       | vxNsr wrote:
       | The sane way to do this would have been to give the handouts on
       | condition of no stock buybacks for 10 years and cap total exec
       | compensation for similar amount of time for any company that
       | accepts the handouts.
       | 
       | This should be true for any company that accepts gov money.
       | 
       | The gov doesn't give money to benefit the stockholders, they're
       | doing it to benefit the larger economy and country. Stock holder
       | shouldn't even be considered as beneficiaries in these deals.
        
         | djbebs wrote:
         | Profit isn't a sin, and if you want shareholders to do
         | something for you, why do you think they will want to do it if
         | there is nothing in it for them?
        
           | vxNsr wrote:
           | No one is asking shareholders to do anything... We're having
           | the government give the company money for a joint venture. If
           | the company uses it wisely in the way they promise they
           | would, everyone, including the shareholders benefit.
           | 
           | If the company cynically takes the money, intentionally fails
           | to uphold their side of the contract, and then rebuffs
           | attempts by the government to reclaim the money, while that
           | might be in the interest of the shareholders they haven't
           | actually done anything there and don't deserve to benefit. In
           | fact they should be punished (along with the executives) for
           | being unethical.
        
             | jdasdf wrote:
             | >No one is asking shareholders to do anything... We're
             | having the government give the company money for a joint
             | venture. If the company uses it wisely in the way they
             | promise they would, everyone, including the shareholders
             | benefit.
             | 
             | The company belongs to the shareholders, that's what being
             | a shareholder means.
             | 
             | Let me quote you:
             | 
             | >The sane way to do this would have been to give the
             | handouts on condition of no stock buybacks for 10 years and
             | cap total exec compensation for similar amount of time for
             | any company that accepts the handouts.
             | 
             | >This should be true for any company that accepts gov
             | money.
             | 
             | >The gov doesn't give money to benefit the stockholders,
             | they're doing it to benefit the larger economy and country.
             | Stock holder shouldn't even be considered as beneficiaries
             | in these deals.
             | 
             | You'll note that not a single word in that post said
             | anything about the company not holding up its end of the
             | bargain. And indeed you made no mention as to why "stock
             | buybacks" or "total exec compensation" would prevent the
             | company from holding up its end.
             | 
             | Let's be clear here about what you're doing, you're so
             | focused on hurting shareholders, you don't even care if the
             | results you get are compatible with what you state you
             | want.
        
         | Drblessing wrote:
         | You have a great idea. It would be tough corralling the boards
         | and execs of these companies to accept Gov money that limits
         | their compensation. Still, with competition, one company would
         | be incentivized to take the money.
        
           | jdasdf wrote:
           | Why would there be competition, and why would any company
           | take that deal, when it cannot benefit from it?
        
             | vxNsr wrote:
             | Why wouldn't it benefit? the idea would to be prevent
             | giving a handout to the shareholders through unethical
             | means. When you sign a contract with someone you are bound
             | by the contract, for some reason you and most company
             | executives are having trouble understanding that. They all
             | (you) think, "if I can take someone else's money and run,
             | then I should, my word and agreements be damned." That
             | anathema to a civil society.
             | 
             | I'll address your disingenuous reply to me above over here:
             | 
             | Stock buybacks and executive bonuses are things you give
             | out when the company is doing well -- through its own
             | means, not when you get charity from the government because
             | you screwed up for 30 years and failed to invest and
             | innovate. If intel which had record profits last year and
             | revenues in excess of $70billion needs a handout because it
             | doesn't have the money to invest in the US, then it
             | shouldn't be allowed to reward it's owners and failed
             | executives until the US government gets a return on its
             | investment.
             | 
             | It takes 5 years to bring a fab online and 5 years to see
             | the economic impact of that new fab, so 10 years before
             | they're allowed to start rewarding their owners again. Or
             | return the money early and then you can do stock buybacks,
             | and phat exec bonuses.
        
       | andrewstuart wrote:
       | It'll be money wasted.
       | 
       | They should be paying out a large sum ONLY on completion, defined
       | as when the first 10 million semiconductors are delivered to
       | commercial customers.
        
         | jason-phillips wrote:
         | As a side note, that's like a couple of days of production for
         | one fab. A billion chips would be more meaningful in your
         | example.
        
           | [deleted]
        
         | tootie wrote:
         | I'm not an expert but that could be considered dumping by the
         | WTO
        
       | PaywallBuster wrote:
       | Tax based on manufacturing concentration?
       | 
       | e.g. at current market shares, we could
       | 
       | - 10% tax for Asia manufacturing
       | 
       | - 20% tax for Taiwan manufacturing
       | 
       | By moving away from these centers, taxes would be adjusted say
       | annually
       | 
       | I think this would be interesting for other industries too
       | 
       | #ChinaDecoupling
        
       | tomohawk wrote:
       | If it moves, tax it. If it keeps on moving, regulate it. If it
       | stops moving, subsidize it.
       | 
       | - Ronald Reagan
        
         | JadeNB wrote:
         | With no context, I'm not sure what you mean by this; but,
         | without saying anything about the validity of the position,
         | it's probably worth noting (as you surely know) that Reagan
         | said this to satirize "big-government" perspectives on
         | taxation. It was not his policy statement.
        
         | culi wrote:
         | Funny but it turns out subsidization is pretty much the only
         | way we've ever gotten things done. The most productive
         | economies have ever been have always been wartime economies
         | when gov't basically takes full control of every aspect
         | 
         | Look at your iPhone. That touch screen, GPS, the internet,
         | voice-assistant AI, etc. It's all a collection of government
         | technologies. Economist Mariana Mazzucato has written[0] about
         | the myth of private sector innovation in depth. Even the
         | industrial revolution was driven through purposeful government
         | investment.
         | 
         | Another economist, Ha-Joon Chang, has written[1] extensively
         | about this as well. The same tools the US used to build itself
         | up (subsidization, tariffs, gov't programs, etc) are the first
         | things that the US (through World Bank and IMF) bans with
         | "structural adjustment" policies when these countries
         | inevitably can't pay back the loan that was shoved down their
         | throats. They "liberate" the economy. In other words remove any
         | local protections from competition by US companies that are
         | themselves heavily subsidized. And also get rid of any
         | government services and leave it up to the "free market"
         | 
         | The thing is that this is just the way anything gets done. Just
         | look at Walmart.[2] Internally, it's the largest planned
         | economy ever invented. Many magnitudes larger than the Soviet
         | Union ever was. Anybody who's sold a product at Walmart stores
         | knows that once you make the deal you've basically given up all
         | control to them. They decide what gets produced in what
         | factories and when and how much
         | 
         | Contrast that with something like Sears that tried the "free
         | market" approach internally. They let their stores compete with
         | each other and tried to have minimal centralized intervention
         | in what each store does. Sears failed... And so did their Ayn
         | Rand-obsessed CEO.
         | 
         | [0] https://marianamazzucato.com/books/the-entrepreneurial-
         | state
         | 
         | [1] https://anthempress.com/kicking-away-the-ladder-pb
         | 
         | [2] https://www.versobooks.com/books/2822-the-people-s-
         | republic-...
        
       | mhneu wrote:
       | This was what Andy Grove wanted - more investment in chip
       | manufacturing. Good news.
       | 
       | Grove was a visionary in many ways and his writing on this back
       | in 2010 or so impacted my thinking.
       | 
       | https://prospect.org/environment/andy-grove-trade-globalizat...
       | 
       |  _In retirement, Grove became concerned about the decline of
       | American manufacturing: When he was CEO, Intel not only performed
       | its research and development in the United States, but its
       | manufacturing as well. He was greatly disturbed that more and
       | more American companies produced their products abroad. Concerned
       | about the erosion of the American middle class, he also helped
       | Service Employee International Union leaders Andy Stern and David
       | Rolf conceptualize new ways that the American labor movement
       | might once again flourish._
        
         | nwiswell wrote:
         | > This was what Andy Grove wanted - more investment in chip
         | manufacturing.
         | 
         | He was also the former CEO of Intel, so you know, not exactly
         | impartial on the subject.
        
       | jasondc wrote:
       | The beginning of the undoing of globalization, countries will
       | start bringing industries back home with bills like this.
        
         | vkou wrote:
         | This is the 23rd year in a row that people have been saying
         | this, at the rate we're going, globalization will be undone any
         | minute now.
         | 
         | This is just a taxpayer gift to multinationals. If you want to
         | undo globalization, handouts aren't the solution, tariffs are.
        
         | trevorboaconstr wrote:
         | No, I don't think so. The last few years have been no more than
         | a speed bump in the 100 year trend of increased global
         | interconnection.
        
           | culi wrote:
           | "Global interconnection" is not the same thing as
           | "globalization". In many ways they're actually opposed. With
           | globalization comes increased strength of patent and
           | copyright laws and much more control over what crosses what
           | borders
           | 
           | There's a direct relationship between international trade
           | agreements and border security
        
         | pm90 wrote:
         | Globalization is here to stay. The economics are just too sweet
         | to "go back".
        
           | upupandup wrote:
           | I think so as well, in particular I believe that countries
           | with a large population of young will be the biggest
           | beneficiaries of companies exiting China.
           | 
           | It's going to take some time to get back to scale but I
           | believe India, Vietnam, Southeast Asia stands to be the
           | biggest winners.
           | 
           | I do not see China returning to status quo anytime soon. It's
           | more likely that they will fall victim to nationalistic
           | fervor and close its doors.
        
       | 01100011 wrote:
       | Such a monumental scam and a gross theft from taxpayers.
       | Companies making billions of dollars in profits don't need free
       | money. I could be onboard with a subsidized loan, but handouts
       | are not needed.
       | 
       | FWIW, I work at a company that stands to benefit from this bill.
       | 
       | Does the US need to secure reliable semiconductor supply chains
       | free of China? Sure. This is not the most cost effective way to
       | do it.
        
         | maerF0x0 wrote:
         | I'd like to see a matching consumer side tax. Basically forced
         | on shoring and user pay taxation (instead of taxing my grandma
         | who uses about 0 chips, lol more than amazon who uses
         | millions/billions of chips but pays next to no taxes)
        
         | sbf501 wrote:
         | The reason why non-US cities manufacture so many semiconductors
         | is that there is simply no profit. Capitalism has pushed
         | manufacturing overseas. There are roughly 100-1000 more ARM
         | chips than Intel chips in the world, but the profit margins are
         | miniscule compared to Intel. If Intel made commodity chips,
         | their shareholders would lose value. This bill basically
         | subsidizes the already wealthy to get more wealth and probably
         | won't do much since China will continue to expand while US fabs
         | come online. Free hand of the market my ass.
        
         | Drblessing wrote:
         | It's as simple as this: If companies could manufacture chips
         | profitably in America, they would be.
         | 
         | American Laws & Regulations prohibit domestic semiconductor
         | manufacturing without Government subsidies.
        
           | jszymborski wrote:
           | Another way of looking at this is that under regulation of
           | competing industries in other countries requires intervention
           | (be it via tariff or subsidy).
           | 
           | I think people here have argued the strengths/weaknesses of
           | each approach. The best solution is likely some nuanced mix
           | of the two, but nuanced policy is hard to create and I rather
           | we eat the costs of any of the two approaches that are more
           | likely to be adopted today rather than continue to take no
           | action.
        
         | verdverm wrote:
         | We don't need the most cost effective way, something that costs
         | a bit more and will make it happen (faster) is preferable
        
         | goatcode wrote:
         | >This is not the most cost effective way to do it.
         | 
         | What would you recommend?
        
         | yieldcrv wrote:
         | Often times the people in any individual nation don't want to
         | hear it, but nations are in competition with each other to
         | attract business.
         | 
         | This undermines any other function of what people think a
         | government is there for and the system that government operates
         | under. If people were told anything else, they were told a lie.
         | 
         | There are different people operating under more effective set
         | of rules, and they can pit countries against each other to
         | sweeten the deal of operating within that country.
         | 
         | Its just simply a more effective set of rules than whatever
         | people were taught in their civics class, or by an animated
         | sheet of paper singing about how bills are formed.
        
         | WebbWeaver wrote:
         | >This is not the most cost effective way to do it.
         | 
         | Agreed. The alternatives should have been presented. Maybe
         | include this in partnership with canada, mexico and others.
         | Where the wonks at?
        
         | qaq wrote:
         | What would be a good way?
        
           | frgtpsswrdlame wrote:
           | United States Semiconductor - aka spinning up a nationalized
           | firm.
        
             | alldayeveryday wrote:
             | Agreed with this. Has many benefits, including that the
             | profits flow back to the taxpayers rather than to
             | corporations and shareholders. Semiconductors are too
             | important to national security to be controlled by profit
             | seeking corporations whom have little allegiance to the
             | nation or the people.
        
             | drexlspivey wrote:
             | And that's gonna be cheaper?
        
               | dangrossman wrote:
               | The goal isn't to be cheaper, it's to have a reliable
               | domestic supply chain.
        
               | drexlspivey wrote:
               | Which the bill will provide for a fraction of the cost
        
           | skywal_l wrote:
           | Have the DOD force its suppliers to make their things in the
           | US? Only allow them to import raw materials or low value
           | manufactured elements. Just throwing ideas, might not be
           | practical...
        
             | Goronmon wrote:
             | _Have the DOD force its suppliers to make their things in
             | the US? Only allow them to import raw materials or low
             | value manufactured elements. Just throwing ideas, might not
             | be practical..._
             | 
             | Are there controls on what suppliers charge? If not, what
             | prevents them from charging as much or more than would be
             | spent on subsidies? If so, what prevents suppliers from
             | just choosing to opt out of the transaction entirely?
        
             | 2OEH8eoCRo0 wrote:
             | There are already trusted foundries for sensitive silicon.
             | 
             | https://www.dmea.osd.mil/otherdocs/AccreditedSuppliers.pdf
        
             | bushbaba wrote:
             | *And force all US Federal spending to not purchase computer
             | equipment made outside the US with non US made components.
        
             | WebbWeaver wrote:
             | Yes but without a foreign policy economic investment may be
             | difficult.
        
             | Alupis wrote:
             | People already complain about the infamous "$5,000"
             | wrenches and other silly ITAR compliance shenanigan's the
             | DoD plays and drains their coffers... leading to increases
             | in funding over the past many decades.
        
             | colinmhayes wrote:
             | Pretty sure that's already the case.
        
           | alldayeveryday wrote:
           | Nationalization, imo. Nationalize semiconductor
           | manufacturing, such that the profits flow back to the people.
        
             | qaq wrote:
             | Yep that always works out great
        
         | tdhz77 wrote:
         | Cost is not the only consideration. I fear for people who only
         | focus on one issue and ignore the rest. Rarely do we see
         | congressional leaders agreeing on this scale. I would say they
         | find that reliance on China to be a threat to National
         | Security. US and China communications is zero and even lower
         | than it was during the Cold War. Pelosi story on visiting
         | Taiwan should give you an idea of the stakes that are play.
         | China siding with Russia should be the final consideration of
         | the United States commitment to Democracy and people. Cost is
         | really just one data point and should not be the only
         | consideration. This concept can be applied to many more things,
         | and I think you should rethink.
        
           | 01100011 wrote:
           | You can't wave the magic wand of national security and
           | justify any inefficient or ineffective attempt at stealing
           | from the future to goose the present.
           | 
           | The short term goal should be to diversify critical US supply
           | chains away from a country that is currently considered by
           | the US to be an competitor. I'm sure you remember that US
           | official policy since the 70s is the "One China Policy" which
           | admits that Taiwan is a part of China and that only attempts
           | to reunify by force will be responded to(*). So the US needs
           | to move supply chains out of PRC/ROC, but moving them to S.
           | Korea, Japan, or dozens of other friendly nations is an
           | acceptable goal from a national security standpoint.
           | 
           | * - I'm not a fan of this, but it is what it is. I didn't
           | realize it until recently.
        
             | LAC-Tech wrote:
             | One of the most pernicious myths about this situation out
             | there is that there is a single "One China Policy" shared
             | by everyone on earth. This is not the case. The One China
             | Policy of the US is different to that of the PRC. And I
             | quote:
             | 
             | - The United States did not explicitly state the sovereign
             | status of Taiwan in the three US-PRC Joint Communiques of
             | 1972, 1979, and 1982.
             | 
             | - The United States "acknowledged" the "One China" position
             | of both sides of the Taiwan Strait.
             | 
             | - U.S. policy has not recognized the PRC's sovereignty over
             | Taiwan;
             | 
             | - U.S. policy has not recognized Taiwan as a sovereign
             | country; and
             | 
             | - U.S. policy has considered Taiwan's status as unsettled.
             | 
             | Next time you read a news story about this issue, take note
             | of the fact that PRC officials use the term " _the_ One
             | China policy " while US officials use the term " _our_ 'One
             | China' policy".
        
           | lapcat wrote:
           | > Rarely do we see congressional leaders agreeing on this
           | scale.
           | 
           | There has been widespread bipartisan support for the
           | military-industrial complex for as long as Eisenhower
           | (correctly) warned about the military-industrial complex.
           | 
           | Partisan disagreements just tend to make the headlines more
           | often.
        
           | trasz wrote:
           | >China siding with Russia should be the final consideration
           | 
           | If it happened, which it didn't.
        
         | colechristensen wrote:
         | The opposite direction of motivation is to tariff semiconductor
         | imports and still I doubt a quarter of a trillion dollars would
         | be invested so fast.
         | 
         | Geopolitical issues forcing this aren't the fault of the
         | semiconductor providers, decades of policy are at fault for
         | letting the situation get this bad.
         | 
         | And to be fair future taxes will recoup some of this, as will
         | the value provided to the state of an increased reliability of
         | sourcing semiconductors.
         | 
         | It may not be the most cost-effective solution but it's the
         | solution we _need_ at this point because China isn 't our
         | friend and increasingly seems like won't be.
        
         | Alupis wrote:
         | Clearly, handouts are needed to force/incentivize these
         | companies to build new fabs in the continental US. Otherwise
         | they would have built them under their own gumption by now.
         | 
         | When there is no clear benefit for the company to fab chips in
         | the continental US, and a lot of clear negatives (cost,
         | regulations, etc) - you have to do something to outweigh the
         | cons. If the US had been an amazing place to fab chips already,
         | hand-outs would be completely unnecessary and we would already
         | have a bustling chip fabbing industry. But... we don't.
         | 
         | Perhaps after handing out all this "free" money, lawmakers need
         | to take a long hard look at why our chip fabbing industry has
         | nearly vanished.
        
           | lettergram wrote:
           | Alternatively, you add a 20% tax on CPUs made outside the US.
           | That would incentivize the fans manufactured in the US even
           | if it's a foreign company.
        
             | stevenjgarner wrote:
             | How significant is the US market to foreign manufacturers?
        
             | Alupis wrote:
             | Or, chips just become 20% more expensive in the US and the
             | consumer loses... and the US still doesn't gain supply
             | chain security.
             | 
             | I don't think tariffs will work when the alternative
             | requires _massive_ outlay of capital and decades to recoup.
             | 
             | Not to mention, there is no reality where manufacturing
             | these chips in the US costs less than Taiwan, for example.
             | There is no reason to build a fab in the US with the
             | current economic and regulatory climate. So... we have to
             | _force_ it to happen... which is what this bill does.
        
               | ZetaZero wrote:
               | Intel had profits of $20B last year. They could easily
               | build a new modern fab every year if they wanted to. But
               | it makes more sense for them to spend tax payers money
               | instead.
        
               | thfuran wrote:
               | Easily as in "if they feel like wiping out all their
               | profits", which is not really how public companies tend
               | to feel.
        
               | 01100011 wrote:
               | Amazon went years basically making no money because they
               | were reinvesting and in a growth stage. Intel could do
               | the same. They just need to convince investors of the new
               | narrative. Wall Street doesn't demand profits if you
               | deliver promises.
        
               | BeetleB wrote:
               | > They could easily build a new modern fab every year if
               | they wanted to.
               | 
               | And they are, and have always been.
        
               | phkahler wrote:
               | >> Or, chips just become 20% more expensive in the US and
               | the consumer loses... and the US still doesn't gain
               | supply chain security.
               | 
               | Push it up 50 percent. This quarter trillion dollars is
               | going straight on the debt pile so it will hurt a lot,
               | just not today.
        
               | Alupis wrote:
               | Without getting political - does it even matter anymore?
               | Trillions of dollars were just thrown out the window to
               | whoever could catch some... and few if anyone has any
               | idea where most of it actually went.
               | 
               | At least this money will have a tangible, appreciable
               | outcome. Supply chain security for such critical things
               | such as chips is really hard to overstate the importance
               | of for the US.
        
               | gscott wrote:
               | We inflate away our national debt anyway so in future
               | dollars that is a few hundred billion at most.
        
               | StillBored wrote:
               | I think in this case the US is different than say Chile
               | because its such a large market. AKA its large enough to
               | support home grown manufacturing if the incentives aren't
               | out of wack.
               | 
               | The chicken tax, as been an incredibly efficient way to
               | assure that car's are manufactured in the USA, so much so
               | that the cost difference between a Ford manufactured in
               | Mexico and a Toyota manufactured in TX is basically 0.
        
               | Alupis wrote:
               | How is this not the consumer still losing, though?
               | 
               | There is no reality where manufacturing a car in Mexico
               | costs the same as in Michigan. We've artificially
               | increased the cost of the Mexico product... that is what
               | will happen if you try that approach with chips - they
               | will be more expensive for no real good reason.
               | 
               | It also appears to cost many multiples more capital to
               | build a chip fab than a car plant according to these
               | sources[1][2].
               | 
               | [1] https://www.exacthowmuch.com/how-much-does-it-cost-
               | to-build-...
               | 
               | [2] https://builtin.com/hardware/american-made-
               | semiconductor-cos...
        
               | StillBored wrote:
               | Well its MX, vs TX, so maybe that is part of it, but I
               | suspect there are other more significant differences,
               | like for example ford sells ~7x the number of F-150's as
               | Toyota sells Tundra's and that is only reflected in a ~3K
               | difference in base price.
               | 
               | Its hard to have an exact 1:1 comparison, but I think
               | most people would agree they are roughly the same price
               | for roughly the same product. And yet one is largely
               | designed and manufactured in the USA (the Toyota).
               | 
               | So, maybe they it costs more to employ someone in San
               | Antonio, but maybe that doesn't really matter in the
               | grand scheme of things vs flying engineers to MX to work
               | out kinks in the assembly line.
               | 
               | And its probably the same with semiconductor
               | manufacturing. Intel isn't behind because it costs more
               | to manufacture things in the US, they are behind because
               | they didn't invest in EUV, and made some technical
               | mistakes, as well as business mistakes around contract
               | manufacturing and refusing low margin deals.
               | 
               | I think if you look at the results of the IBM/Lenovo
               | deals its abundantly clear that where the manufacturing
               | was located had nothing to do with the success of the
               | products (It was outsourced to Lenovo long before it
               | became their business). The American management was the
               | problem, and kicking it to the curb allowed them to grow
               | the business 10X+.
               | 
               | And lets not ignore Samsung which has a large fab just
               | down the road from me. So it can't be a terrible
               | environment for USA based semiconductors if a Korean
               | company is willing to fab things here.
        
             | kube-system wrote:
             | Depends on how much money the other countries are handing
             | out to build CPUs there.
        
           | arrosenberg wrote:
           | > Clearly, handouts are needed to force/incentivize these
           | companies to build new fabs in the continental US. Otherwise
           | they would have built them under their own gumption by now.
           | 
           | I don't have a problem with government subsidy for
           | jumpstarting industry, but it's absurd to give the money to
           | Intel and AMD. They profited massively from offshoring their
           | production. If we are going to spend money (and I agree we
           | must), it should be invested in new competition so that Intel
           | and AMD have to spend their largess on fixing their business
           | model to compete.
        
           | nerpderp82 wrote:
           | Fabs are only a small part of the supply chain. Any one of
           | the thousands of critical components that go into maintenance
           | or manufacturing put the whole thing at risk. Just dumping
           | money on industry will not solve this. Having a dirt to
           | package solution with everything domestically produced would
           | and it doesn't need to be the latest process node, that is
           | ridiculous and folks that advocate for that don't see the
           | forest for the trees.
        
         | onepointsixC wrote:
         | So what is the most cost effective way to do so? China's
         | pouring hundreds of billions in subsidies into fabs. South
         | Korea is pouring hundreds of billions in subsidies.
         | 
         | Tariffs alone would only allow for domestic balancing of those
         | subsidies but lose you the global market. So again, what would
         | you recommend instead.
        
       | notlukesky wrote:
       | The headline is wrong and deceiving. The semiconductor part is 52
       | billion. Still a lot of graft and corruption for negligent
       | management. They could have given them tax subsidies for capex
       | investment for example instead of corporate handouts and payoffs
       | to the Pelosi stock positions.
        
         | shadowpho wrote:
         | >Pelosi stock positions
         | 
         | Pelosi isn't even the worst offender...
        
         | ziddoap wrote:
         | Putting aside the fact the HN title is completely different
         | from the article title, I don't even see where $280B (in the HN
         | title) comes from... There's a $250B mentioned in the article
         | body, not a $280B.
        
           | trhway wrote:
           | Couple senators walking to lunch just had a small talk with a
           | lobbyist, and the number got adjusted a bit.
        
           | lettergram wrote:
           | Lol I updated it? But there's a lot of articles with
           | different values (interesting ...)
           | 
           | https://www.msn.com/en-us/news/politics/senate-
           | passes-280b-s...
           | 
           | It's also interesting because it appears the title on the fox
           | article changed so idk man
        
       | StillBored wrote:
       | Oh, joy more money to monopolistic companies.
       | 
       | This is completely the wrong way to go about it (tax individuals
       | and give the money to big corps). If you want a protectionist
       | measure then implement a protectionist measure, like I don't
       | know, tariffs.
       | 
       | Yet another bill that follows at least the last 40 years of
       | congress doing exactly the wrong thing. (and to be clear this
       | isn't a rant against the Democrats).
        
       | ParksNet wrote:
       | Banning Proof of Work cryptocurrencies from being traded on
       | licensed exchanges would achieve the same improvement of chip
       | availability, as well as saving a huge amount of electricity, for
       | $0.
       | 
       | I guess sensible measures like this don't boost the share
       | portfolios of politicians' spouses though.
        
         | lkbm wrote:
         | If the goal is to increase available supply, this might work.
         | If the goal is to increase domestic production, I don't see how
         | it would help.
        
         | smoldesu wrote:
         | "Sensible measures" like that don't get picked because
         | ultimately all cryptocurrency is a zero-sum game, and getting
         | rid of _all_ of them would save us a lot of time, manhours and
         | wasted Internet conversations. But ideas like that are too
         | sensible, so we give people the freedom to build whatever
         | blockchain-garbage they want, because that 's their sovereign
         | choice.
        
           | cowtools wrote:
           | banning cryptocurrency is easier said than done.
        
             | thfuran wrote:
             | No, it should be pretty easy to effectively end them. Just
             | make it illegal to possess, buy, or sell them and suddenly
             | all the corporate interest vanishes, the exchanges
             | disappear, and all the crypto bros quiet down.
             | 
             | Sure, some people would still use them but it'd be a
             | rounding error compared to current adoption.
        
               | cowtools wrote:
               | >Just make it illegal to possess, buy, or sell them
               | 
               | How do you enforce that? This would just drive everyone
               | to KYC-less exchanges.
               | 
               | >corporate interest vanishes
               | 
               | I welcome the abolishment of corporate investment. This
               | wave of corporate dollars have only served to distract,
               | hijack, and pevert the true purpose of cryptocurrency.
               | 
               | >the exchanges disappear
               | 
               | The exchanges disappear? It seems like it would be pretty
               | simple to set up an exchange as an onion service.
               | 
               | So long as there is a easy route to a single
               | cryptocurrency (be it PoS or otherwise) then there is an
               | easy route to any other cryptocurrency via Crypto-to-
               | Crypto pr P2P exchanges.
               | 
               | >Sure, some people would still use them but it'd be a
               | rounding error compared to current adoption.
               | 
               | Rounding error? I think you'll find that we're actually
               | the majority, despite what the mob of custodial money-
               | chasers would have impressed upon you.
               | 
               | Besides, those investors are bound to leave after they
               | lose enough money on the shell game. It's inevitable.
        
         | dangrossman wrote:
         | Are the kind of chips being used to mine crypto the same kind
         | that are keeping Ford from building trucks?
        
           | _fizz_buzz_ wrote:
           | They are not, but they are made in the same fabs.
        
           | cwkoss wrote:
           | Nope. Sour grapes reaction.
           | 
           | US should use the demand to fund an effective semiconductor
           | industry, not shrink the pie to account for its
           | ineffectiveness.
        
       | jscipione wrote:
       | No wonder the economy has been destroyed, our "leaders" are
       | spending us into oblivion.
        
       | Xeoncross wrote:
       | What's important here is that, like all other funding and
       | stimulus bills, we know that less than 25% of it will go towards
       | the actual thing.
        
       | yababa_y wrote:
       | Is now a good time to enter the industry? Who is doing the most
       | innovative work?
        
       | dmitrygr wrote:
       | We knew it would pass cause Paul Pelosi bought a lot of stocks
       | that would benefit. Dude has amazing outcomes trading stocks! We
       | really should look into how he magically does that...
        
         | theplumber wrote:
         | What stocks? Intel & AMD dont seem to have moved much. Asking
         | for a friend.
        
           | camjohnson26 wrote:
           | nvidia, which they sold today at a large loss.
        
             | cbsks wrote:
             | Has Nvidia announced they are building a fab? I haven't
             | heard anything about it.
        
               | Alupis wrote:
               | I'm pretty sure Nvidia is a fabless design house (like
               | AMD these days). Perhaps they are looking to change that.
        
             | braingenious wrote:
             | By "they" are you talking about Paul Pelosi?
             | 
             | Can somebody explain how buying stock for $100(1) and
             | selling at $165 causes a loss? I'm not being flippant,
             | it'sa serious question.
             | 
             | 1. https://www.businessinsider.com/nancy-pelosi-stock-
             | trades-pa...
        
               | [deleted]
        
               | faet wrote:
               | >In a periodic transaction report, the senior Democrat
               | disclosed that her husband, financier Paul Pelosi, sold
               | 25,000 shares of Nvidia for about $4.1 million, ending up
               | with a loss of $341,365.
               | 
               | He bought options in July 2021. Basically, he said he'd
               | buy 20k shares stock for X price regardless of the price
               | in the next year. If the stock goes up he can sell the
               | options without having to buy said stock (for a profit).
               | He can also give up what he paid for the options and
               | choose not to buy the shares and they'd expire worthless.
               | 
               | As the stock was below what he bet it would be within a
               | years time he decided to exercise his right to buy the
               | 20k shares rather than lose his initial investment. He
               | then sold, for a loss, but possibly a smaller one than if
               | he just let them expire worthless.
        
             | drexlspivey wrote:
             | > Paul Pelosi purchased on June 17, 20,000 shares of
             | Nvidia, a top semiconductor company, worth between $1
             | million and $5 million, the Daily Caller reported, citing
             | disclosure reports filed by the House speaker.
             | 
             | Price on June 17 was $158, right now it's $178
        
               | faet wrote:
               | He bought the options back in summer of 2021. He decided
               | to exercise them rather than let them expire worthless.
               | His price was probably around 180/share.
               | 
               | >In a periodic transaction report, the senior Democrat
               | disclosed that her husband, financier Paul Pelosi, sold
               | 25,000 shares of Nvidia for about $4.1 million, ending up
               | with a loss of $341,365.
        
               | drexlspivey wrote:
               | That makes no difference, he could have sold the options
               | for their intrinsic value on expiration (Friday June 17)
               | he doesn't have to let them expire worthless. Instead he
               | exercised them, committing $4m in capital prior to the
               | bill passing and made $20 per share
        
           | pclmulqdq wrote:
           | Pelosi bought a lot of Nvidia. It's unclear to me why they
           | would benefit more than Intel.
        
             | colinmhayes wrote:
             | Nvidia isn't getting shit from this bill. It's basically
             | all going to intel with global foundries and other boutique
             | fabs fighting for the scraps TSMC and Samsung leave behind.
        
               | 01100011 wrote:
               | There were some versions of the bill which had subsidies
               | for chip designers as well. Not sure where that ended up.
        
       | spraveenitpro wrote:
        
       | pm90 wrote:
       | WaPo article, which has more details about the bill and less
       | details about what different "personalities" are saying:
       | https://www.washingtonpost.com/politics/2022/07/27/senate-ch....
       | 
       | Overall, it looks great. We absolutely need to fund more
       | semiconductor manufacturing. Losing that ability to China/Taiwan
       | was just a terrible strategic mistake.
       | 
       | The US hasn't lost this battle (over semiconductors) just yet.
       | While current manufacturing is indeed dominated by East Asian
       | countries, the vast majority of research still happens in US
       | universities. This legislation allocates more funding for that
       | research, fantastic.
       | 
       | Theres some political gamesmanship over some silly stock options
       | of congresspeople... my response is, who gives a single shit. The
       | country needs this bill.
        
         | [deleted]
        
         | selimthegrim wrote:
         | Manchin objected to reversing the cancellation of state and
         | local tax deductions was my understanding. The piece is not
         | clear on this.
        
         | C-x_C-f wrote:
         | This is always framed in terms of USA vs. China/Taiwan but what
         | about Europe?
         | 
         | AFAIK (I might know wrong) the consensus among macroeconomists
         | is that "social market economies" like European ones are better
         | suited (compared to "liberal market economies" like the USA) to
         | investing in large scale manufacturing (see e.g. _Varieties of
         | Capitalism_ [0]--though it is a bit controversial).
         | 
         | Though I do wonder if chip manufacturing might just be too
         | large for the EU to handle. Many people in Europe keeps saying
         | that e.g. Ericsson could start a fab but I'd be curious to see
         | if a bill like this would succeed in the EU.
         | 
         | [0] https://en.wikipedia.org/wiki/Varieties_of_Capitalism
        
           | sct202 wrote:
           | The EU passed their own Chips Act earlier this year. It was a
           | point of contention since Intel's CEO has kept threatening to
           | expand in Europe instead of the US if the US CHIPS act isn't
           | passed.
        
           | imhoguy wrote:
           | Europe has ASML
        
         | bloodyplonker22 wrote:
         | > Losing that ability to China/Taiwan was just a terrible
         | strategic mistake.
         | 
         | More like losing that ability to Taiwan's TSMC and South
         | Korea's Samsung. China's SMIC is very far behind and has
         | insignificant market share. Additionally, it's rather insulting
         | to non-communists when you mishmash together China and Taiwan.
        
           | bagacrap wrote:
           | yes, although the subsidies supply to anyone who builds fabs
           | in the US, including TSMC.
        
         | WebbWeaver wrote:
         | Can we not frame this as a battle or even a war? The US lost
         | this capability a long time ago due to labor costs and natural
         | resource consumption.
         | 
         | From the labor cost and natural resource consumption a
         | operation of this size can easily fail. We need more partners
         | in this not just a handout.
         | 
         | This action should have little to no input on any globalized
         | leverage system.
         | 
         | For this to be successful we need more partners
        
           | onepointsixC wrote:
           | >We need more partners in this not just a handout.
           | 
           | This rings hollow when all of America's major partners are
           | pumping massive subsidies to their domestic companies to win.
           | Case and point SK is subsidizing their Fabs to the tune of
           | $450 Bn.[1]
           | 
           | [1]:
           | https://www.bloomberg.com/news/articles/2021-05-13/korea-
           | unv... [1 Non paywalled]: https://archive.ph/9Gs8q
        
             | WebbWeaver wrote:
             | I did not mean to strike a hollow note. I do not see such
             | vision being applied outside of lets increase competition
             | and spend locally.
             | 
             | How much further will their their money go locally than
             | ours? I want us to spend our money on the next generation
             | but what economic window are we planning to occupy?
        
         | mbostleman wrote:
         | >>While current manufacturing is indeed dominated by East Asian
         | countries, the vast majority of research still happens in US
         | universities. This legislation allocates more funding for that
         | research...>>
         | 
         | I suspect there's more to it than this, but to the extent
         | there's not, this doesn't make much sense. If the monetization
         | of our research ends up in China's control, how does it help to
         | fund more research. Apparently research is not the problem,
         | manufacturing is.
        
           | Nowado wrote:
           | Location of manufacturing doesn't determine location of
           | monetization.
        
         | phkahler wrote:
         | >> We absolutely need to fund more semiconductor manufacturing.
         | Losing that ability to China/Taiwan was just a terrible
         | strategic mistake.
         | 
         | The correct solution to that is tariffs. That would hurt us
         | short term and should have been done long ago before it would
         | have been a problem. This will add to the debt pile, so it will
         | be with us for a long time.
        
           | jen20 wrote:
           | Who do you think pays the cost of tariffs?
        
           | pclmulqdq wrote:
           | The debt pile won't notice an extra $50 billion. To make a
           | meaningful dent in it, spending on entitlements needs to get
           | cut or taxes on the middle class need to dramatically
           | increase. Neither of those things are going to happen.
        
         | LMYahooTFY wrote:
         | > and less details about what different "personalities" are
         | saying
         | 
         | What are these? Can you quote them?
         | 
         | Pompeo could qualify I suppose? Though he was Secretary of
         | State, which seems to be more than a "personality".
         | 
         | The rest of the "details" are about the opinions of
         | congressmen, not "personalities".
        
           | crmd wrote:
           | I'm only interested in the hard facts - the provisions in the
           | bill, and not in horseshit PR statements from politicians.
        
         | dang wrote:
         | Ok, we'll change to that from
         | https://www.foxnews.com/politics/senate-passes-china-
         | semicon.... Thanks!
        
         | ren_engineer wrote:
         | main problem is that we are rewarding companies for being
         | disloyal and offshoring in the first place, now they win again
         | with free money after raking in profits for decades. We should
         | have some funding for smaller companies and R&D but also
         | massive tariffs to force companies to bring manufacturing back
        
           | parentheses wrote:
           | That would slow an already injured economy.
        
           | mechagodzilla wrote:
           | There are basically only 3 close-to-cutting edge foundries
           | left - Intel (American), Samsung (South Korean) and TSMC
           | (Taiwanese), and TSMC is in the lead by quite a bit. We're
           | getting extremely close to the end-game of moore's law, so
           | the lifetime of a <7nm fab is likely to be long, and there
           | are likely to only ever be a handful built because they are
           | absurdly expensive (20+ Billion dollars), particularly if you
           | can't keep them fully utilized. There are no 'smaller
           | companies' with cutting edge fabs, and these aren't really
           | American companies who outsourced and are no bringing them
           | back - Intel has always had a large manufacturing presence in
           | the US, and a large part of this is trying to get foreign
           | companies to 'offshore' fabs to the US rather than continuing
           | to concentrate in south korea / taiwan.
        
             | mhneu wrote:
             | This is true for large digital integrated circuits.
             | 
             | There's also analog fabs, MEMS fabs, LED/photo/laser fabs.
             | 
             | Places like Analog still have smaller fabs like that. Those
             | fabs also seem likely to create technological progress into
             | the future, and so the US should be funding those too.
        
             | bejelentkezni wrote:
             | Unless I'm mistaken, Micron and Texas Instruments have
             | their own foundries as well.
        
               | verall wrote:
               | They do but they have explicitly given up the game of
               | competing to be the first to the next fastest smallest
               | digital logic (i.e. cutting edge nodes).
               | 
               | Micron is still pushing DRAM and NAND tech but it's more
               | for cost cutting since they are strictly commodities. The
               | work it takes to be a pure-play fab like TSMC is pretty
               | different - lots of working with fabless vendors to bring
               | up their chips. Even Intel isn't any good at this (yet).
               | It's a collaborative process.
        
       | ravenstine wrote:
       | I can't help but conclude that this is too little too late. R&D
       | isn't the problem, which is what this bill seems more focused on.
       | The ability to produce affordable chips domestically at
       | affordable prices is the actual problem. North America's first
       | priority isn't access to bleeding edge tech.
       | 
       | > The bill also includes about $100 billion in authorizations
       | over five years for programs such as expanding the National
       | Science Foundation's work and establishing regional technology
       | hubs to support start-ups in areas of the country that haven't
       | traditionally drawn big funding for tech.
       | 
       | I can only imagine how bureaucratic the process for accessing
       | those funds will be. More likely, Medium Tech and even Big Tech
       | will be the ones who feed from that trough because they're the
       | only ones willing or able to cut through the red tape.
        
         | dwiel wrote:
         | I've received money from the NSF SBIR grant program and know
         | another half a dozen others who have as well, and while there
         | is certainly a process, it isn't too bad. All the people I know
         | who have received them are at startups and small companies.
         | That said, the NSF does more than just SBIR and I can't speak
         | to any of that.
        
         | bilbo0s wrote:
         | Even worse, it'll be some senator's niece and nephew who all of
         | a sudden create a startup that "is just crushing it on the
         | funding!"
        
       | Someone1234 wrote:
       | It should be noted that the US decided not to extend the
       | universal free school meals program, because it was "too
       | expensive" at $11B. They also stopped the expanded and early
       | payment of family tax credits, causing a double-whammy hit to
       | poor families (then pile on inflation/food prices, and gas
       | prices). But $50B to large monopolistic companies isn't "too
       | expensive," and we can afford _that_.
       | 
       | Unfortunately 52 senators get to control the agenda, and they get
       | to decide what is "affordable" and "too expensive."
        
         | sytelus wrote:
         | I would wager that a lot of these senators were available for
         | purchase.
        
         | PragmaticPulp wrote:
         | > It should be noted that the US decided not to extend the
         | universal free school meals program, because it was "too
         | expensive" at $11B.
         | 
         | Tragic, yes, but note that you can't compare the price tags
         | directly on bills like this because the headline number tends
         | to be a mix of tax breaks combined with spending authorization
         | stretch out over many years.
         | 
         | For example, $100 billion of the bill goes to domestic funding
         | scientific research and fostering technology hubs. It's spread
         | out over 5 years.
         | 
         | I need to read the fine print of how this is all spread out,
         | but it's incorrect to read the headline and assume that
         | chipmakers are getting $280B of checks next year.
         | 
         | For comparison, a bill authorizing the domestic lunch program
         | over a similar 5 year term would likely be said to cost $65-70
         | billion due to the 5-year term and the inevitable rising prices
         | over that term. (Note I'm not making any moral judgments about
         | this, just putting it in context. I also didn't verify any cost
         | numbers from the parent comment, so don't take my example as a
         | fact)
        
         | guelo wrote:
         | Actually thanks to the filibuster the agenda is controlled by
         | 40 senators who are able to block anything they don't like.
        
           | mattnewton wrote:
           | 51 senators could change that rule any time though, it's just
           | an accidental convention that hasn't had the best track
           | record imo
        
             | listless wrote:
             | Nobody changes it because they know they are going to need
             | it when they are the minority. Someone is gonna have to
             | take one for the team and pull the plug on it, but I have
             | little faith in our government ever doing the "principled"
             | thing.
        
               | pclmulqdq wrote:
               | In 2013, Senator Harry Reid did it for federal judges
               | (and not supreme court judges). At the time, McConnell
               | told them that if they killed the filibuster for federal
               | judges, he would kill it for supreme court justices. In
               | 2017, he followed through on his promise, the orange fool
               | appointed 3 justices, and now Roe v. Wade has been
               | overturned.
               | 
               | It would not be crazy to link the overturning of Roe to
               | the 2013 decision of Harry Reid to invoke the "nuclear
               | option." It appears to have led to an era of
               | unprecedented judicial activism.
               | 
               | I doubt that getting a few extra progressive federal
               | judicial nominees through was worth those supreme court
               | seats. For now, it seems that enough of the Senate has
               | learned their lesson about removing the filibuster.
        
               | bcrosby95 wrote:
               | You're missing a piece of the puzzle actually - this goes
               | back to George Walker Bush's presidency.
               | 
               | Democrats were being extremely obstructionist in GWB's
               | federal judges. Republicans were considering throwing out
               | the filibuster in response. Moderates from both parties
               | got together and convinced their respective sides to back
               | down and let judges get through while maintaining the
               | filibuster.
               | 
               | In 2013, the tactic was pulled out by Republicans, and
               | the Democrats used the - given the history of this tactic
               | - unsurprising response after some time. Which, of
               | course, led to 2017.
        
               | Clubber wrote:
               | >In 2013, Senator Harry Reid did it for federal judges
               | (and not supreme court judges).
               | 
               | Yes, it was an extremely aggressive and short sighted
               | thing for him to do. Most people don't know this story
               | though, so it seems the Democratic Party gets a pass.
               | 
               | Here's McConnell lambasting Reid about it in 2013.
               | 
               | https://www.c-span.org/video/?316395-12/minority-leader-
               | mcco...
               | 
               | >It appears to have led to an era of unprecedented
               | judicial activism.
               | 
               |  _Judicial activism is a judicial philosophy holding that
               | the courts can and should go beyond the applicable law to
               | consider broader societal implications of its decisions._
               | 
               | https://en.wikipedia.org/wiki/Judicial_activism
               | 
               | Based on recent decisions, we seem to be currently in an
               | era of judicial restraint, not activism. Again, the
               | SCOTUS doesn't create laws, congress does. That's the way
               | the system was designed. I hope the Citizens United
               | decision will get overturned.
               | 
               | https://en.wikipedia.org/wiki/Judicial_restraint
        
               | rat87 wrote:
               | No it was a wise and practical decision. And the
               | fillibuster has always been a stupid accident of the
               | rules. It delayed civil rights bills by over a decade
               | 
               | Everyone knew that McConnell was lying and would have
               | overturned the fillibuster on judges the second a supreme
               | court fillibuster started. And we would have gotten the
               | same extremist supreme court that laughs at restaint and
               | takes away fundamental rights
        
               | pclmulqdq wrote:
               | Apparently he had the option to do it under Bush when
               | Democrats were obstructing Bush's nominees to the federal
               | courts, and he chose not to, so the evidence suggests
               | that he would not have just removed the filibuster for
               | the fun of it.
        
               | Clubber wrote:
               | >No it was a wise and practical decision.
               | 
               | Well the Democrats just lost all chance of any new gun
               | control and will probably have some gun control repealed.
               | Not only that, they lost the power of Democrat controlled
               | states to enact gun control at the state level and will
               | have much of state gun control repealed. They completely
               | lost the right to abortion at the federal/constitutional
               | level as well. What did they gain for that immense cost?
               | Some federal judges back in 2013. If you think that was
               | wise and in no way short sighted, I really don't know
               | what to say.
        
               | anjbe wrote:
               | The Democrats could have been smarter tactically. Trump's
               | first SC nominee was Gorsuch, certainly conservative but
               | a stellar jurist, and an uncharacteristically good pick
               | from Trump (compare to the other names on his 2016
               | shortlist). The Democrats had no cards besides
               | obstruction, which would certainly lead McConnell to kill
               | the filibuster. If they had made the reasonable guess
               | that Trump's next pick would be easier to beat, saved
               | their powder, and reluctantly let Gorsuch through,
               | McConnell would have had to kill the filibuster for
               | Kavanaugh. For Kavanaugh, a far more controversial pick
               | than Gorsuch, he wouldn't have had the votes.
        
               | galangalalgol wrote:
               | But there is likewise nothing preventing court packing
               | right now except the concern of some democrats right?
               | They could assign 8 more, then next time there is a swap
               | the gop would add 16 etc. You have to go exponential by
               | nature of the vote to account for deaths. So in as little
               | as 116 years the whole population might be on the bench!
               | I don't like that the macro level policy of our nation is
               | getting decided based on rules of order and who is
               | willing to change them. I'm not a historian, but it seems
               | like the filibuster was already a hack around intended
               | operation of the legislature. Time limiting it would
               | still serve the purpose of preventing the minority from
               | getting shut down with no chance to speak, but also
               | prevent its abuse to require 60 votes on absolutely
               | everything.
        
               | Clubber wrote:
               | >But there is likewise nothing preventing court packing
               | right now except the concern of some democrats right?
               | 
               | Right. FDR threatened this during his administration and
               | bullied the SCOTUS into deciding his way. He was quite
               | Machiavellian. For me, doing something like this would
               | neuter one of the tiers of the check and balance system.
               | 
               | https://www.history.com/news/franklin-roosevelt-tried-
               | packin...
               | 
               | >I'm not a historian, but it seems like the filibuster
               | was already a hack around intended operation of the
               | legislature.
               | 
               | Yes, but it's procedure that the senate had agreed on for
               | quite some time. There's nothing in the constitution that
               | says how many votes are needed to pass, the senate
               | decides that, and for most things, it's 60.
               | 
               | >require 60 votes on absolutely everything.
               | 
               | Depends on how you look at it. Do you want a political
               | party to make laws of the land with only 25+ states
               | supporting it? It sounds good when it's something you
               | support, but doesn't sound great when it isn't. The idea
               | of the 60 vote rule is the federal government can't enact
               | legislation that a supermajority of the country isn't in
               | favor of. Regardless of your party affiliation, you can
               | imagine what horrible legislation would be passed if the
               | opposing party was allowed to pass anything with just
               | 50+1 votes in the senate.
        
               | rat87 wrote:
               | It would be absolutely insane to link overturning Roe to
               | Reid's decision. Everyone already knew McConnell would
               | have gotten rid of it anyway the second a supreme court
               | justice was fillibustered. Look at his actions in the
               | Garland and Barrett nominations, compared to that getting
               | rid of the fillibuster for judges is peanuts.
               | 
               | The only mistake Reid made was not to do away with the
               | fillibuster fully
        
               | pclmulqdq wrote:
               | If you threaten to do something and don't follow through
               | on your threats, they have no more meaning.
               | 
               | McConnell and his party apparently had a similar
               | situation 10 years before and did not throw out the
               | filibuster.
        
               | Pulcinella wrote:
               | The filibuster isn't even dead. Senators can still get up
               | there and talk for as long as they want (aka what the
               | filibustering actually is). The current filibuster rule
               | is basically a senator just saying "yeah I want to
               | filibuster this" and for some reason everyone just goes
               | along with it.
        
             | staticman2 wrote:
             | I assume they won't change it because they are afraid of
             | what the other side will do when they are in power.
        
             | throwaway_4ever wrote:
             | History won't look fondly on us for the absolute
             | laughingstock of a policy it is at the highest levels of
             | power. "Look even back in 2025, people were a bunch of
             | monkeys with nuclear weapons. Look how they would decide on
             | policy."
        
         | ryathal wrote:
         | They only killed universal free lunch, not the means tested
         | part. Poorer kids are still getting free lunches and now the
         | richer families have to pay for school lunches. They ended
         | welfare for the wealthy.
        
           | boomchinolo78 wrote:
           | Not that anyone with wealth and some sense was letting their
           | kids eat that goop.
        
           | htuahisusi wrote:
           | I went to a public elementary school in New York state in the
           | early 2000s, and only kids who needed free or reduced school
           | lunch prices got it. The rest of us paid $1.75.
        
             | kevinventullo wrote:
             | I had the same experience in semi-rural Iowa, and I believe
             | there was also a small morning program for kids who didn't
             | get breakfast at home.
        
         | onepointsixC wrote:
         | > But $50B to large monopolistic companies isn't "too
         | expensive," and we can afford that.
         | 
         | The US cannot afford losing its technological edge. It is an
         | issue of national security. CHIPS is quite a modest bill
         | compared to foreign competitors such as the South Korean $450Bn
         | bill[1]. And that's not even going into how much subsidies
         | China is pumping into their fabs.
         | 
         | [1]: https://www.bloomberg.com/news/articles/2021-05-13/korea-
         | unv... [1 Non paywalled]: https://archive.ph/9Gs8q
        
         | yieldcrv wrote:
         | You just need an external enemy. in this case China.
         | 
         | You can bridge consensus on all sides when there is a boogeyman
         | that isn't another American.
        
         | carabiner wrote:
         | In the US, there is basically one party - the business party.
         | It has two factions, called Democrats and Republicans, which
         | are somewhat different but carry out variations on the same
         | policies.
        
         | ekianjo wrote:
         | > because it was "too expensive" at $11B
         | 
         | Schools meals are pure cost, they don't bring anything back.
         | It's not like we have mass starvation going on at the moment
         | either.
         | 
         | Also, why "free meals" when parents can afford to pay for it?
         | If you have parents who are under a certain threshold of
         | revenues, give their kids free meals, but let's not do a one-
         | size fits all policy, this is not 1950 anymore.
        
         | jedberg wrote:
         | Keep in mind that this isn't just a handout to business, but
         | also a national security issue. Having 90% of our chips made in
         | Taiwan means we have to spend a bunch of resources protecting
         | Taiwan.
         | 
         | The long term plan here is to bring this manufacturing back
         | into the US so that we don't have to protect Taiwan anymore.
         | 
         | (Please note I'm not stating my opinion on if this is good or
         | bad, simply stating the end game they are going for).
        
           | ipsin wrote:
           | If this were true, there would be a reduction in US military
           | spending, but I'm... _very_ much not buying that.
        
             | kevinventullo wrote:
             | It's not about military might. Look at the pain the west is
             | feeling with divestment from Russia, and then imagine doing
             | that with China.
        
         | mark_l_watson wrote:
         | Your points are very good, I would have said the same thing.
         | 
         | The cynic in me thinks it is not just the Senate. How much
         | money has House Speaker Nancy Pelosi's family invested in US
         | chip makers in the last few months? Quite a lot of money...
         | 
         | I remember when the US government stopped the $50 million/year
         | breakfast for poor kids program - too much money. That is when
         | we were attacking Iraq, and spending $50M every 20 minutes of
         | so in order to pump money into political donors like the
         | 'defense' industry and energy industries.
         | 
         | Off topic, but I laugh when I hear democrats or republicans
         | talk like their political party cares for them. Absurd. The DNC
         | and RNC are themselves profit driven entities.
        
         | tablespoon wrote:
         | > It should be noted that the US decided not to extend the
         | universal free school meals program, because it was "too
         | expensive" at $11B. They also stopped the expanded and early
         | payment of family tax credits, causing a double-whammy hit to
         | poor families (then pile on inflation/food prices, and gas
         | prices). But $50B to large monopolistic companies isn't "too
         | expensive," and we can afford that.
         | 
         | That's misleading framing, that's derailing discussion about
         | this.
         | 
         | More accurately: there's more consensus around national
         | security spending than social spending. The government has
         | decided it would rather have the economy depend on large
         | _American_ companies for these critical components than on
         | large _Chinese_ companies.
         | 
         | And that might have follow-on effects that mean more jobs for
         | Americans so fewer kids are poor and need subsidized school
         | lunches.
         | 
         | I suppose if you're unhappy with that write your senators, and
         | ask them to pass laws requiring purchases from the lowest-cost
         | global supplier (e.g. not American), and use the money saved
         | for welfare subsidies.
        
           | cft wrote:
        
             | seandoe wrote:
             | It was in direct response to the comment. What are you
             | talking about?
        
           | memonkey wrote:
           | Ah, yes, the ol' write your congresspeople. Part of the
           | problem is that for years they are running on these platforms
           | saying they will help the people but end up not doing any of
           | the things they say they are going to do.
        
             | 2OEH8eoCRo0 wrote:
             | Democracy doesn't mean everyone gets what they want. You
             | are not the only constituent with a voice.
        
               | runarberg wrote:
               | Then it should be pretty easy to undermine your
               | democracy. Just increase the number of people per
               | representative such that each representative has plenty
               | of constituents that align with whomever pays most into
               | your campaign.
               | 
               | And alas, USA is one of the least represented democracies
               | in the world at 596,060 constituents per legislator.
               | Compared to China's 454,930, Brazil's 353,783, South
               | Africa's 98,726 or France's 71,631 constituent per
               | legislator.
        
               | diordiderot wrote:
               | Median earners and top 1% disagree on 11% of legislation.
               | 
               | Of that 11%, there is a 1% chance the resulting vote
               | aligns with the preferences of the median earner
        
               | hanniabu wrote:
               | In today's democracy you only get what you want if what
               | you want is coincidentally the same as what their donors
               | want.
        
               | jobgh wrote:
               | What are some examples of legislation that has broad
               | support among the voters adjusted for voting power, and
               | is ignored by our representatives?
        
               | lu5t wrote:
               | Federal legalization of cannabis
        
               | pessimizer wrote:
               | I hate to refer you to a search engine, look for any
               | major issue where the population differs in opinion to
               | the donor class. An obvious place to start is with
               | healthcare, where even slight majorities of Republicans
               | wanted it socialized (at least before 2016) but picking
               | out issues is a waste of time. The vast majority of the
               | public has _no_ influence on public policy. The elite
               | consensus becomes policy 100% of the time. If there isn
               | 't an elite consensus (on around 11% of studied issues),
               | the median public preference is chosen 1% of the time;
               | instead one of the elite factions not aligned with public
               | opinion usually carries the day.
               | 
               | https://www.cambridge.org/core/journals/perspectives-on-
               | poli...
               | 
               | People's opinions are highly correlated with elite
               | opinions, of course (because elites control what they
               | hear, read, and see, and whether they'll progress in
               | their careers or be employed at all), but when there's a
               | divergence, public opinion is followed 0% of the time.
        
               | Nuzzerino wrote:
               | https://www.congress.gov/bill/114th-congress/house-
               | bill/2187
               | 
               | Would have allowed for professionals in a given field to
               | be accredited to make investments related to their
               | profession. Or to put it another way, you would no longer
               | need to already be rich to use the tools that the rich
               | use to get richer.
               | 
               | The bill was passed unanimously in the house, and then
               | quietly killed in the senate.
               | 
               | 5 years later, we got a neutered version. Now you can
               | make investments if you get a series 7 license, etc. But
               | from what I understand you can't just take the test and
               | get the license, you need to be sponsored by an
               | institution, but that misses the point of the original
               | bill that represented the actual will of the people.
        
           | Spivak wrote:
           | Or the tl;dr, there's always money available for things that
           | directly make money and when it comes to government repayment
           | is in the form of jobs and GDP growth.
           | 
           | "But free school lunches also provide a positive ROI!" I
           | agree with you, now convince your representative of it.
        
             | stirfish wrote:
             | Maybe we need a different spin on it: instead of a positive
             | ROI, free school lunches provide a strong security posture
             | by making stronger and smarter future-soldiers?
        
           | InvisibleCities wrote:
           | This has nothing do with people's civic engagement levels,
           | and everything to do with money. The semiconductor industry
           | gets a massive subsidy because they spend tens of millions of
           | dollars on lobbying - impoverished schoolchildren get left to
           | starve because they don't.
        
             | jobgh wrote:
             | You honestly think tens of millions in lobbying efforts
             | cause a tens of billions return on investment? Why is it so
             | insanely cheap?
             | 
             | Maybe our elected representatives simply agree that
             | national security is a priority just like the people who
             | voted them into office?
        
           | jacobreg wrote:
           | The point isn't that its one or the other, the point is that
           | spending on social programs is much cheaper than national
           | security programs and makes a more meaningful difference in
           | more peoples lives. The point is that either-or is a false
           | dichotomy, we can have good social safety nets and still have
           | robust national security. The reason we don't have both isn't
           | that we can't afford both, its that much of this country
           | views poverty as a moral failing and intentionally neglects
           | the poor because "they deserve it".
        
           | DubiousPusher wrote:
           | > More accurately: there's more consensus around national
           | security spending than social spending.
           | 
           | Is there? Or is there just more consensus among the elite and
           | Ivy League educated who dominate security discussion and
           | policy?
        
             | BobbyJo wrote:
             | I mean, these people are voted in.
        
               | DubiousPusher wrote:
               | True, the natsec Republican your polity elected did have
               | to overcome a natsec Democrat or visa-versa.
               | 
               | I encourage you to attend some meetings of your local
               | party Republican or Democrat (whichever is dominant) and
               | see how the people you get to elect are chosen. What
               | you'll find is the folks controlling that process are
               | deeply under the influence of a status quo and that most
               | unorthodoxy there is very quickly marginalized.
        
             | notyourwork wrote:
             | What answer do you expect to get to your argumentative
             | question?
        
               | DubiousPusher wrote:
               | I'm open to debate. But I think the OP is erroneous in
               | presuming popular will is expressed in American National
               | Security and Foreign policy and therefore using that to
               | lend credence to this turn of events.
        
               | sebzim4500 wrote:
        
               | pessimizer wrote:
               | I'm not them, but it's an invitation for a different
               | answer than the one that seems obviously true. I don't
               | think that it's constructive or less "argumentative" to
               | work to come up with a framing for a question that makes
               | it seem less one sided; making the answer less obvious is
               | the job of people who have a different opinion.
        
             | goatlover wrote:
             | And what do the voters think?
        
               | DubiousPusher wrote:
               | That's a good question. Seems like a good place to start
               | though.
        
         | djur wrote:
         | A substantial number of those 52 senators oppose free school
         | meals not because they're "too expensive" but because the
         | policy itself (the government giving free food to children) is
         | something they object to on ideological grounds. A much smaller
         | subset of that group also oppose the government giving free
         | stuff to industry, but in either case the cost is not what
         | they're concerned about.
        
           | runarberg wrote:
           | I've stopped believing in the ideology of the average
           | legislator. There are some high profile congresspeople or
           | senators who are deeply ideological, and act according to
           | their ideology, but I feel like that is the exception rather
           | then the rule (hence the high profile).
           | 
           | Rather then ideology most legislators rule by the most
           | persuasive lobbying, this includes people and PACs that pay
           | for their very very expensive campaign funds. And in this
           | case semiconductor monopolies simply has a better performing
           | lobbying campaign then social advocacy groups, so the former
           | gets passed but not the latter.
           | 
           | Note. I don't believe this listing of democracy is unique to
           | the USA. You see it in Europe as well. However USA is
           | especially prone to this because of lax lobbying laws, lax
           | campaign financing laws while also being one of the least
           | represented democracy in the world (even less represented
           | then non-democracies like China).
        
           | mathattack wrote:
           | I'm all for healthy free lunches for poor kids. Is it really
           | necessary to give free meals to all Palo Alto kids
           | independent of financial status?
           | https://www.paloaltoonline.com/news/2022/06/19/palo-alto-
           | uni...
        
             | gene91 wrote:
             | "Free lunch" isn't free if one pays enough tax to cover its
             | cost and other free things that they receive. Given there's
             | already progressive taxes, what's the benefit of having
             | income threshold for free lunch programs (or similar
             | assistance programs)?
             | 
             | Universal "free lunch" is cheaper to manage, avoids
             | filtering out children who needs it (but is filtered out
             | due to administrative error or rigid rules), prevents
             | children's embarrassment, etc.
        
             | SeanLuke wrote:
             | I'm all for free public education for poor kids. Is it
             | really necessary to give free public education to all Palo
             | Alto kids independent of financial status?
             | 
             | Snark aside, the answer is: it's much simpler to manage a
             | program that offers the same thing to everyone regardless
             | of income than it is to manage a program that has to work
             | out who deserves it. And offering it to all avoids stigma.
        
             | jancsika wrote:
             | I keep asking the same thing about why it's necessary for
             | malloc to give so much memory to Electron, but they are way
             | less friendly on the glibc mailing list to that argument
             | for some reason.
        
             | fipar wrote:
             | Most likely only those who need it will take it, and making
             | it available to everyone makes it simpler to manage.
             | 
             | I went to a public school in Uruguay and we had a daily
             | free meal (not really lunch, it was more of a snack, school
             | ran 13 to 17 for me) and I never went to get mine, but I
             | always had a couple of classmates who didn't get a square
             | lunch at home and they went to get that.
        
             | jprd wrote:
             | Yes!
             | 
             | Why would a human being feel that feeding children is NOT
             | their responsibility?
             | 
             | Clearly you have never had to be the "free lunch kid", or
             | idealize your childhood independent of the cruelty of
             | "different". You are extremely privileged.
             | 
             | The idea that we'd limit what kids we fund for meals,
             | education, etc. is just gross and bifurcates any moralistic
             | or democratic ideals.
             | 
             | The US has a serious problem with "bootstraps" and whatnot.
             | Which really means, survival of the sh1tt1est.
             | 
             | If you feel that investing in the future of your community
             | is BS, stop living in a community.
             | 
             | You don't have kids? Cool!
             | 
             | Meanwhile, you don't feel like you need to contribute to
             | the future you wish you had secured for yourself without
             | struggle? F*ck you. Your community is an investment in the
             | continued existence of a people with similar DNA as
             | yourself.
             | 
             | It is beyond my understanding to fathom how in 2022 we're
             | all still trying to deal with false scarcity as some sort
             | of reality.
             | 
             | There is MORE than enough for everyone, but we don't really
             | care about that beyond a family or clan directive. That's a
             | shame for any culture.
        
               | rubyist5eva wrote:
               | > Why would a human being feel that feeding children is
               | NOT their responsibility?
               | 
               | Perhaps we should ask the parents who are encouraged to
               | not feed their own children because of the existence of
               | these programs.
        
               | tacotacotaco wrote:
               | I was at the house of the owner of a company I worked
               | for. I mentioned my amusement at seeing a school bus in
               | this very rural area on the way to his house. He
               | complained that he didn't have kids so he didn't see why
               | he should have to pay for that. I replied that, as my
               | employer, he was benefiting from my public school
               | education. That ended that conversation.
        
             | jpdaigle wrote:
             | The Palo Alto school meals are by no means healthy. At
             | least at my kindergartner's school last year, nothing's
             | really prepared onsite, it's mostly microwave-in-a-bag fast
             | food (factory made burritos, pizza, 2-ingredient
             | sandwiches). Often this would come with a side of fruit
             | (canned and sweetened) and crackers.
             | 
             | My kid would always bring a lunch from home but often
             | return with it uneaten, because when you pit healthy home
             | cooked food against microwaved pizza and crackers, for a
             | six year old, it's no contest.
             | 
             | I'm still supportive of the program - if there are starving
             | kids in our community, of course having free options is
             | great, I just wish they'd managed to have a cook onsite so
             | it wouldn't be so factory-made and artificial.
        
             | kergonath wrote:
             | It is not necessarily a problem with progressive income
             | taxes: the wealthier still pay more.
             | 
             | Also, giving every kid the same treatment is a good idea in
             | general as it reinforces the idea that they should be
             | treated equally.
        
               | ejb999 wrote:
               | >>Also, giving every kid the same treatment is a good
               | idea in general as it reinforces the idea that they
               | should be treated equally.
               | 
               | Actually what it does is teach kids they should depend on
               | the government for handouts - even if there families can
               | easily afford to pay their own way. Not a message I would
               | choose to send.
        
               | jonny_eh wrote:
               | Kids depend on adults. Those adults are primarily their
               | parents, but it need not be.
        
             | catawbasam wrote:
             | My experience is that the rich kids mostly bring food,
             | because the cafeteria food is terrible.
        
             | Clubber wrote:
             | The idea behind it is not to embarrass the poor kids who
             | need the free lunch by making lunch just free.
        
               | nsxwolf wrote:
               | And then the government gets to decide what the lunches
               | are for everyone.
        
               | Clubber wrote:
               | >And then the government gets to decide what the lunches
               | are for everyone.
               | 
               | Well, no. You always have the option to bring your lunch
               | if you can afford it. So the government gets to decide
               | what the lunches are for poor people who don't have
               | another option. Take that for what it is, but shit lunch
               | is better than no lunch, ask any hungry person.
        
             | jagged-chisel wrote:
             | Doing it for everyone makes management simpler. I suspect
             | it leads to better academic performance, too.
        
               | jonny_eh wrote:
               | Also, it doesn't stigmatize the kids that do receive the
               | free meals.
        
               | danenania wrote:
               | Exactly.
               | 
               | It's not about the kid in Palo Alto who doesn't need it,
               | but gets it anyway.
               | 
               | It's about the kid who lives in poverty and _should_ get
               | it, but doesn 't, because their family didn't properly
               | submit forms A65, B39, and F12 proving their annual
               | income meets the ever-changing requirements.
               | 
               | Giving a benefit to everyone is by far the simplest and
               | most effective way to be sure no one falls through the
               | bureaucratic cracks (though it's probably more accurate
               | to call them gaping chasms than 'cracks').
        
             | diordiderot wrote:
             | earn more > you pay more tax > kids 'free meal' isn't free
        
             | klodolph wrote:
             | There's an added cost if you want to sort through which
             | kids qualify and which kids don't. Trying to filter kids
             | out also reduces the program's reach for kids which do
             | qualify for various reasons.
        
             | thereare5lights wrote:
             | Necessary is a bad way to evaluate because it often
             | devolves into whether or not it is "absolutely necessary".
             | Of course the answer is often times no.
             | 
             | Rather than embrace minimalism, the better question is if
             | it is more efficient to run the program that way and often
             | times, universal programs are indeed more efficient.
        
             | beachtaxidriver wrote:
             | When middle class people use a government service, the
             | quality goes up.
        
           | feet wrote:
           | It's wild that some people are opposed to helping poor people
           | but throw boatloads of cash at rich monopolistic
           | corporations. What a shitty ideology
        
             | kortilla wrote:
             | It's almost as if that's not the ideology at all!
        
               | bilbo0s wrote:
               | Yep.
               | 
               | In the US, a lot of the time support for one program or
               | another is given not on the basis of ideology, but rather
               | on the basis of whether or not the beneficiaries of a
               | program provided commensurate, um, "campaign
               | contributions".
               | 
               | Pretty sure impoverished school kids contribute pretty
               | much zero to political campaigns.
        
               | ch4s3 wrote:
               | Increasingly campaigns are funded almost entirely by
               | small dollar donations raised through social media. This
               | is about to make US politics really weird, and I'm not
               | sure what to think of it.
               | 
               | Also basically all legislation that passes which is very
               | little, is written by the staffers of House and Senate
               | leadership without going through committee. It's then
               | handed to members to rubber stamp on the floor if the
               | votes are already secured. Buying some random senator or
               | rep is basically worthless these days unless they hold
               | swing vote and can't be primaried for some reason.
        
               | feet wrote:
               | There's a ton of legislation written by think tanks like
               | ALECS
               | 
               | It would be nice if _all_ campaigns were funded by small
               | donations. We should get large corporate donors out of
               | politics
        
               | feet wrote:
               | So the ideology is pure greed, lust for power and money.
               | Awesome
        
             | jorblumesea wrote:
             | It's not that crazy if you think about the fact that most
             | senators never went to public schools, are from wealthy
             | families, went ivy league, mostly hang around other wealthy
             | people.
             | 
             | Completely out of touch is probably the right mental
             | framework.
        
             | pram wrote:
             | Corporations need to eat too!
        
           | chmod600 wrote:
           | Or, perhaps feel that state governments are better suited to
           | those kinds of assistance programs.
        
             | mhneu wrote:
             | Unlikely, because many states then cut those assistance
             | programs when given the opportunity. It's more likely that
             | the 'state' argument is a way to achieve their ideological
             | ends (cutting the program.)
             | 
             | That said, this bill is a very positive development.
             | Investing in local manufacturing and R&D is a great idea,
             | and it will help the economy. Hopefully it will efficient
             | and money will not be captured by rent-seekers or cronyism.
        
               | Grim-444 wrote:
               | Isn't that how it's supposed to work? The state is
               | supposed to pass laws that represent the will of its
               | constituents. If the majority of the people living in the
               | state are opposed to such a program, then they shouldn't
               | have such a program. The scope of the federal government
               | is supposed to be for coordinating cross-state stuff that
               | states alone can't decide for themselves.
        
               | jonathanlb wrote:
               | > The state is supposed to pass laws that represent the
               | will of its constituents. If the majority of the people
               | living in the state are opposed to such a program, then
               | they shouldn't have such a program.
               | 
               | You're ignoring that gerrymandering districts allow
               | politicians to enact policies that don't reflect the will
               | of the people.
        
               | commandlinefan wrote:
               | > gerrymandering districts
               | 
               | But that would be even worse at a federal level because
               | there are so many more districts to gerrymander, wouldn't
               | it?
        
               | bobthepanda wrote:
               | The federal government is a lot less likely to be one-
               | party than a state. We haven't had a same-party trifecta
               | for over a decade.
               | 
               | Also, states draw the federal district lines, so
               | generally the Dems and Repubs both do it and the end
               | result is less lopsided.
        
               | Retric wrote:
               | If we wanted local control then local towns/cities and
               | counties would have the most power in our system. Instead
               | things are reversed so smaller units of government have
               | progressively less power.
               | 
               | This makes sense because we want people to freely move
               | around the country without encountering wildly different
               | systems in every small town.
        
               | munk-a wrote:
               | Also, when education funding happens on the county level
               | we end up having wildly different standards of education
               | depending on if your county is where rich people live or
               | not - everyone wants to demand the best for their own
               | children, but I think it's pretty settled that children,
               | who don't have freedom of movement and aren't viewed as
               | fully rationale agents, should have access to good
               | education regardless of who their parents are and where
               | they choose to live.
               | 
               | Differing county education funding was a real and evident
               | problem when I was growing up in Massachuesettes in the
               | 90s - some areas (like Wellesley) had extremely well
               | funded schools due to local taxes while other areas had
               | far too many students for the funds they collected. This,
               | in part, lead to a whole big thing involving student
               | busing[1] which was honestly pretty awful for the
               | students that rode several hours to attend suburban
               | schools - even if they did end up in a better funded
               | district it was a cheap patch that avoided the real
               | issue.
               | 
               | 1. https://www.theatlantic.com/education/archive/2019/04/
               | boston...
        
               | bobthepanda wrote:
               | County level would be an improvement in some places,
               | because school districts can actually be balkanized even
               | smaller than that.
        
               | chmod600 wrote:
               | The name of our country is the United _States_. The state
               | was intended as the primary unit of general government.
               | 
               | Lots of land is outside of cities, and that can't be left
               | ungoverned. And many counties have very few people, which
               | make a lot of government functions impractical or
               | insufficient.
               | 
               | So states are still a reasonable unit after 250 years.
        
               | Retric wrote:
               | Over 4 million Americans aren't living in States. United
               | States is a name, but it consists of more than just
               | States.
        
               | chmod600 wrote:
               | Good point.
               | 
               | Not enough to claim that the federal government must take
               | responsibility for all assistance programs, however.
        
               | munk-a wrote:
               | Alternatively the name of our country (well my former
               | country but whatever) is the United States because
               | existing colonial governments held significant power and
               | weren't willing to unite if it meant they could be
               | unseated from their cushy political appointments.
               | 
               | I don't think going by names is the best approach when
               | we've got legal documents and statements to go by which
               | are far less vague.
        
               | maxerickson wrote:
               | How big of a majority needs to decide that the federal
               | government should be what they want and not what you
               | think it is supposed to be before it can change?
        
               | Clent wrote:
               | States Government don't have the taxing power of the
               | Federal Government.
               | 
               | The only way to solve this equation is to drop Federal
               | Government taxing power to as close to zero as possible
               | and zero may not be enough as states power is likely to
               | drop.
               | 
               | If economics was a harder science, it would be about
               | mathematically proofs of these possibilities.
        
               | yuliyp wrote:
               | > States Government don't have the taxing power of the
               | Federal Government.
               | 
               | Sure they do (except stuff like tariffs). They just face
               | competition from other states on how much they tax their
               | citizens.
        
               | lvspiff wrote:
               | Thats the abortion ruling in a nutshell - return it to
               | the states and let the voters decide. However at the same
               | time we have rulings saying gun rights are a federal
               | issue and a state cannot regulate how permits are given
               | out the way they want (although there are many nuances
               | there), essentially making it a constitutional issue due
               | to the 2nd amendment.
               | 
               | So in other words if it's the will of the country we need
               | to pass an amendment, and if not then move to a state
               | where your ideals are embraced. I know I've heard this
               | story somewhere before...i think back in 1860's...
        
               | cal5k wrote:
               | > essentially making it a constitutional issue due to the
               | 2nd amendment.
               | 
               | Yes, because that's how the American constitution works.
               | If you think something else should have similar
               | protections - or if you don't like the second amendment
               | and think it should be repealed - lobby for a new
               | amendment.
               | 
               | Until then, it's the highest law in the land and is on
               | equal footing with any constitutional protection,
               | regardless of your personal policy preferences.
        
               | rurp wrote:
               | Oh to live in such a world... Unfortunately the Supreme
               | Court is not a compiler that returns rulings from some
               | objective process. The justices have massive leeway to
               | decide how to interpret every part of the constitution,
               | and they do so to align their rulings with their own
               | personal and political goals. If we swapped this court
               | with 9 other judges they would return very different
               | rulings on the exact same cases.
        
               | [deleted]
        
             | [deleted]
        
         | golemiprague wrote:
        
         | pastor_bob wrote:
         | For more clarification:
         | 
         | The US spends $19 billion a year on free lunches for low income
         | American children.
         | 
         | Universal free lunch for all would cost $30 billion a year.
        
         | theptip wrote:
         | This is a shallow analysis. You can't just look at the price
         | tag, you need to think about the value too (more generally, the
         | ROI).
         | 
         | A $10 coffee can be too expensive while a $1000 MacBook is
         | really cheap.
         | 
         | I'm not making any particular claims about the free school
         | meals program, just noting that this argument doesn't hold
         | water as it stands.
         | 
         | Semiconductor manufacturing is of military and geopolitical
         | significance so it makes a lot of sense that the government is
         | willing to spend big here.
        
           | thereare5lights wrote:
           | > Semiconductor manufacturing is of military and geopolitical
           | significance so it makes a lot of sense that the government
           | is willing to spend big here.
           | 
           | You expounded on the value of semiconductors but you didn't
           | on the value of feeding children that would go hungry
           | otherwise.
           | 
           | This is why saying
           | 
           | > This is a shallow analysis.
           | 
           | rings hollow.
           | 
           | The value of feeding the next generation of Americans and
           | ensuring they do not go hungry should be just as much a
           | matter of national security as semiconductors. It's not
           | because the poor are viewed as expendable.
        
             | listenman wrote:
             | The next generation of Americans will grow up hungry if we
             | cede the security of the very item at the heart of all of
             | our infrastructure. The next generation won't have any
             | equivalent electronic equipment from the post-WWII era,
             | whilst living in a world that is based exclusively on
             | semiconductors (consider the usage of semiconductors in
             | medical equipment as well). This is certain death, and this
             | kind of short-sighted belly aching is a problematic
             | position to take when we're staring down the prospect of
             | losing the entirety of our ability to sustain the
             | infrastructure needed to keep anyone alive in the first
             | place.
        
             | californical wrote:
             | Poor children are still eligible? Nobody is going hungry
        
               | toolz wrote:
               | so many "think of the children" arguments without even
               | addressing the fact that literally no one starves in the
               | U.S. for lack of food availability (mental issues can and
               | do lead to starvation though, unfortunately).
               | 
               | I for one don't think the federal government should have
               | anything to do with our school systems. That is not their
               | expertise, not their domain and they don't need any
               | temptations or distractions to use their funding or
               | powers on schools. I want the federal government focused
               | on federal issues.
               | 
               | It seems quite reasonable that schools should serve the
               | local community and be largely funded and ran by locals.
        
         | evo_9 wrote:
         | It is always about money. I guarantee you both sides of the
         | aisle stand to make a shit ton of money otherwise they would
         | not have all gotten together and push this through. It's just
         | one big boys club and the meme going around that government is
         | just another form of organize crime seems more and more true
         | every day.
        
         | twawaaay wrote:
         | This is flawed logic.
         | 
         | Security is what allows everything else to exist. You can't
         | just say "Let's liquidate military and spend all that money on
         | children". This would last only shortly until China or somebody
         | else invades US.
         | 
         | Now, I am not saying to not pay for meals. Investing directly
         | in children is probably one of the better ways to improve
         | future outlook of a country.
         | 
         | I am just saying your logic is flawed and there is no easy way
         | to compare the two.
        
           | Splendor wrote:
           | The military is full of young people who grew up in poverty.
           | It might be good for national security if more of them didn't
           | have nutritional deficiencies. They aren't separate issues.
        
           | doctor_eval wrote:
           | The _environment_ is what allows everything else to exist. By
           | your logic, that should be the #1 spending priority. And
           | that's only the lowest hanging of the rotten fruit of this
           | argument.
        
             | twawaaay wrote:
             | Security is at the top of all needs.
             | 
             | A country that can't defend itself will be pray to
             | everybody else and will not be able to do anything about
             | environment or education.
             | 
             | You can bitch and moan all you want. Go visit Ukraine and
             | see what happens when you live in a country that can't
             | defend itself. Everything else is being put to side. Do you
             | think they are discussing how much they should be spending
             | to help with the effort to control global warming?
        
         | spicymaki wrote:
         | It is despicable that we don't do enough for the poor, but the
         | government can do two things at once. It does not need to be
         | either or.
         | 
         | For the US this is a chip manufacturing is a key strategic
         | asset. South Korea, China, and Taiwan governments are
         | essentially funding their chip manufacturing. It is not a fair
         | playing field. The fact that they are only spending $52B on
         | grants and incentives out of $280B is actually too little.
         | South Korea is spending $450B for local chip manufacturing over
         | 10 years and that started last year.
        
           | sct202 wrote:
           | While South Korea is throwing out giant numbers, the number
           | of South Korean and Taiwanese companies who are announcing
           | plants contingent on the CHIPS Act recently makes it seem
           | like what the US is doing is very favorable (these companies
           | have announced plans of SK Group $22b, Samsung $200b,
           | Globalwafers $5b).
        
       | laxatives wrote:
       | So who is the primary benefactor of this Pork? Seems like this
       | hasn't already been done is because it isn't profitable or
       | scaleable like software is. It's not like there is a shortage of
       | investors in technology.
        
         | [deleted]
        
       | mberning wrote:
       | More pork for their cronies and donor class buddies. Much like
       | the pandemic aid such as the PPP I'm sure fractions of a dollar
       | actually make it into anything of use.
        
       | gdsdfe wrote:
       | Let see how fast they're going to waste a quarter of a trillion
       | dollars
        
       | alexpotato wrote:
       | Didn't get a ton of points when it was last posted but this
       | "Taiwan is now Arrakis" post seems even more timely now:
       | https://news.ycombinator.com/item?id=24576242
        
       | abrichr wrote:
       | Unpaywalled: https://archive.ph/DISce
        
       | jmyeet wrote:
       | Anyone remember how the capital-owning class and their pet
       | politicans were blaming inflation on Covid stimulus checks (eg
       | [1])?
       | 
       | I want you to remember that when you see bills like this one.
       | 
       | Why? Because most of the Covid relief didn't go to individuals.
       | It went to companies. In many cases, the stimulus was to avoid
       | layoffs. Companies laid people off anyway (eg [2]) and used the
       | money for share buybacks. Some governments used the money to
       | build prisons (eg [3]). Biden, before testing positive for Covid,
       | was intending to announce the use of Covid money for _increased
       | police funding_ [4].
       | 
       | My point is that very little of that Covid stimulus made it to
       | consumers but it had a dramatic impact on temporarily eliminating
       | or reducing poverty [5].
       | 
       | Yet giving _people_ money is often viewed as a moral hazard.
       | 
       | Yet we're so willing to give away hundreds of billions to
       | companies while not expecting them to take any sort of haircut on
       | record profits in an era of massive inflation.
       | 
       | Also, let's not forget what happened to Wisconsin and Foxconn
       | [6].
       | 
       | [1]: https://www.cbsnews.com/news/jeff-bezos-joe-biden-
       | inflation-...
       | 
       | [2]: https://publicintegrity.org/inequality-poverty-
       | opportunity/c...
       | 
       | [3]: https://www.splcenter.org/news/2022/07/01/alabama-
       | diverts-40...
       | 
       | [4]: https://apnews.com/article/biden-police-pennsylvania-
       | wilkes-...
       | 
       | [5]: https://www.vox.com/22600143/poverty-us-covid-19-pandemic-
       | st...
       | 
       | [6]: https://www.chicagotribune.com/suburbs/lake-county-news-
       | sun/...
        
       | maskil wrote:
       | For some reason, I have a feeling that handouts would only make
       | these giant corps only more bloated, bureaucratic and inefficient
        
       | beambot wrote:
       | > In a 64-33 vote, the Senate passed the $280 billion "Chips and
       | Science Act," the final iteration of a bill that was years in the
       | making. About $52 billion would go to microchip manufacturers to
       | incentivize construction of domestic semiconductor fabrication
       | plants
       | 
       | And the remaining $228B...?
        
       | encryptluks2 wrote:
       | Socialism for the rich
        
       | Jerry2 wrote:
       | This is the biggest theft of taxpayer money since the inception
       | of the US!
        
       | dang wrote:
       | Related. I'm sure there have been others?
       | 
       |  _H. R. 4346: The CHIPS and Science Act of 2022_ -
       | https://news.ycombinator.com/item?id=32250207 - July 2022 (77
       | comments)
       | 
       |  _House Bill Funds CHIPS Act, Stresses R &D_ -
       | https://news.ycombinator.com/item?id=31560844 - May 2022 (111
       | comments)
        
       | asg101 wrote:
       | Let the congressional insider trading begin!
        
         | treeman79 wrote:
         | Already done. Speaker of houses husband bought 5 million
         | dollars of Nvidia stock right before this bill.
         | 
         | https://nypost.com/2022/07/23/nancy-and-paul-pelosi-are-trad...
        
       | fleddr wrote:
       | Fairly cynical comments on this thread, many trying to uphold
       | American values like "free market", "protectionism is bad", "what
       | about the consumer", "not from my tax money".
       | 
       | I find those remarks pretty naive. Every major power block
       | heavily subsidizes strategic industries, now and forever. It's in
       | no way new or remarkable, nor does it violate some principle.
       | Most of the above concepts are pure fiction.
       | 
       | Semiconductors are not a "free market" in any ordinary sense. It
       | costs tens of billions to enter the market and you'll buy an ASML
       | machine, speaking of dependencies.
       | 
       | It's pretty obvious that this is in response to geopolitical
       | instability. Being geo locked and this not really being a free
       | market at all justify the "unusual" decision.
       | 
       | As is stands, food, energy, and yes...also semiconductors are
       | foundational to a modern digital society. And they're
       | interconnected, without semiconductors you won't have food
       | either.
       | 
       | If you want to know what happens when semiconductors dry up,
       | watch modern Russia. Arguably it's hard to do because of all the
       | propaganda, but pretty much every domestic industry is falling
       | apart, and therefore society falls apart.
       | 
       | Bottom line, don't be naive. Sure it sucks to give rich companies
       | even more money but if that's what it takes, so be it. Also, rich
       | is just one side of the coin, the other is that they spear-headed
       | the information revolution.
        
         | tootie wrote:
         | Here's my cynical take: This bill will subsidize a lot of jobs
         | when we already have zero slack in our labor market. I think
         | it's an excellent target for spending and would have a positive
         | multiplier in normal times but in 2022 this seems likely to
         | just goose inflation another inch.
         | 
         | Unless we actually start seeing cyclical job losses finally hit
         | right when this money starts being spent. Which is entirely
         | possible.
        
           | andrekandre wrote:
           | any way to stop inflation without a needing job losses?
        
           | fleddr wrote:
           | Still missing the point. You concerns mean absolutely nothing
           | when the essentials in your society break down.
        
       | jeffwask wrote:
       | Yey for Corporate Welfare
        
       | butterfly771 wrote:
       | As a Chinese, I would like to say that as far as I know, China is
       | investing heavily in semiconductors, but without high-end
       | production equipment, it is difficult to produce high-precision
       | chips
        
         | upupandup wrote:
         | There's a good reason these litography machines and other CNC
         | equipment have GPS sensitive tracking. Even a slight deviation
         | renders the equipment non-operable and dials home immediately
         | if they lose connectivity.
        
       | Bloating wrote:
       | What would happen is congress subsidized last mile internet
       | access?
        
         | madengr wrote:
        
       | balozi wrote:
       | Just more public money to develop private intellectual property.
       | In a few years we'll be paying more for chips and IP that was
       | developed using tax payer coin.
        
       | ab_testing wrote:
       | Let the stock buybacks begin!!
        
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