Part 4/8:
Building Industrial Capacity through Legislation
Despite the criticism surrounding initiatives like the Inflation Reduction Act (IRA), there are recognizing its role in stimulating domestic industrial capacity. Even if misaligned with optimal outcomes, the act’s intent to build infrastructure within the US is deemed essential. Economists assert that establishing this capacity rapidly is vital, particularly while the international landscape is still influenced by Chinese capabilities.
The urgency to develop local industrial infrastructure aims to reduce reliance on foreign entities, especially critical tech transfer from countries like China.