{"id":17689,"date":"2022-10-28T08:31:32","date_gmt":"2022-10-28T12:31:32","guid":{"rendered":"https:\/\/jimbovard.com\/blog\/?p=17689"},"modified":"2022-10-28T08:35:23","modified_gmt":"2022-10-28T12:35:23","slug":"new-york-post-biden-pitches-failed-economic-vision","status":"publish","type":"post","link":"https:\/\/jimbovard.com\/blog\/2022\/10\/28\/new-york-post-biden-pitches-failed-economic-vision\/","title":{"rendered":"New York Post: Biden Pitches Failed Economic Vision"},"content":{"rendered":"

New York Post, October 28, 2022<\/h3>\n

Biden pitches failed economic vision in Syracuse<\/a><\/h1>\n
\n
By James Bovard<\/a><\/div>\n<\/div>\n

President Biden and Gov. Hochul strutted Thursday at a celebration for a future Micron semiconductor plant outside of Syracuse. The groundbreaking for the factory won\u2019t happen until 2024, but Democrats needed something, anything, to pretend they care<\/a> about the economy before the midterm elections.<\/p>\n

Biden used his speech to launch his final economic pre-election attacks on Republicans. Biden\u2019s biggest howler was claiming that the price of a gallon of gasoline<\/a> is now \u201cdown from over $5 when I took office.\u201d Actually, the average price of a gallon of gas was less than half of that \u2014 $2.39 \u2014 when Biden took power.<\/p>\n

Biden, sporadically shouting during his spiel, also made a barrage of claims about reducing the deficits that were so ludicrous that even the Washington Post condemned his deceit. Biden also mumbled angrily about Republicans cutting Social Security, which they haven\u2019t done.<\/p>\n

Biden and Hochul are exploiting recently passed legislation to parade as economic saviors.<\/a> Congress passed the Chip Act in August, divvying up $52 billion in subsidies for semiconductor production, along with a vast array of other federal spending. That law made Biden the nation\u2019s Semiconductor Czar, and he promised that he would \u201cpersonally have to sign off on the biggest grants\u201d to companies. (Same dude says economy is now \u201cstrong as hell\u201d.)<\/p>\n

But even liberal Bloomberg News warns that the Chip Act \u201ccould become a $280 billion boondoggle\u201d with \u201cbloated, wasteful, government-dependent chipmakers demanding yet more handouts a decade down the line.\u201d<\/p>\n

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Hochul swayed the New York legislature to enact a similar subsidy of up to $10 billion for semiconductor producers. Micron is expected to pocket more than $5 billion \u2014 the largest corporate handout in state history. Federal subsidies will be added next year when the Chip Act starts dishing out goodies. The total subsidy per promised job exceeds $600,000 and could rise far higher.<\/p>\n

The Micron story is a distraction from the economic devastation that Biden and Hochul have spawned. Soaring inflation, spiking interest rates, and higher corporate taxes are inflicting widespread harm. NASDAQ has fallen by almost one third this year, wiping out trillions of dollars of market value of the nation\u2019s most innovative companies. New York State has the second-worst business tax climate in the nation. The Empire Center for Public Policy reported that \u201cthe state\u2019s notoriously high barriers to business entry will be lowered for Micron.\u201d<\/p>\n

Biden boasted that Micron\u2019s investment in New York is \u201cthe largest investment of its kind . . . ever ever in history.\u201d Because the plant will run solely on renewable energy, its production costs could be sharply higher than unsubsidized factories elsewhere in the world. Biden stressed that Micron would be spending $100 billion. Actually, the company has said it would invest \u201cup to\u201d $100 billion over 20 years. Biden boasted, \u201cWith Micron\u2019s $100 billion investment alone, we\u2019re going to increase America\u2019s share of global memory chips and production by 500%.\u201d Regrettably, Biden did not reveal the magic wand he will use to make that a reality.<\/p>\n

Hochul claims her handouts to Micron will generate more than 50,000 jobs in New York. But the governor\u2019s office has refused to disclose the private study from which that estimate was concocted.<\/p>\n

Politicians\u2019 boasts about the job benefits of corporate subsidies are not covered by the Securities and Exchange Commission\u2019s rules on fraudulent statements<\/strong>. A study released last week by Reinvent Albany noted, \u201cNew York State spends roughly $5 billion every year subsidizing big businesses. . . . There is overwhelming evidence that government subsidies to businesses are a very poor way to create good jobs and local economic growth.\u201d<\/p>\n

The study noted that \u201cthe state\u2019s oversight of the Excelsior jobs program \u2014 under which Micron will receive the tax breaks \u2014 is notoriously poor.\u201d<\/p>\n

Corporate subsidies are basically bribes to businesses that routinely spur corruption scandals.<\/strong> Will the Biden-Hochul Semiconductor salvation package repeat the Obama-Cuomo high-tech fiasco?<\/p>\n

A decade ago, President Barack Obama visited the state and proclaimed, \u201cRight now, some of the most advanced manufacturing work in America is being done right here in upstate New York. Cutting-edge businesses from all over the world are deciding to build here and hire here.\u201d Gov. Andrew Cuomo appointed Alain Kaloyeros \u201cto build a semiconductor corridor across upstate,\u201d Politico noted. The program collapsed after Kaloyeros and three other officials were convicted for bid-rigging in 2018 and sent to federal prison.<\/p>\n

Micron and other chip makers who pocket government subsidies could find themselves junior partners to political hacks and unions, who have more influence in Washington than private companies these days. Commerce Secretary Gina Raimondo boasted that \u201cthere\u2019s a lot of strings attached\u201d in the Chip Act. Maybe future Green legislators will require Micron to rely solely on windmills to make chips.<\/strong><\/p>\n

Biden and Hochul\u2019s subsidy theater is no substitute for reviving prosperity across the board. Politicians don\u2019t learn from mistakes committed with other people\u2019s money. And a president who has no idea about the price of gasoline should be kept far away from control of semiconductors.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

New York Post, October 28, 2022 Biden pitches failed economic vision in Syracuse By James Bovard President Biden and Gov. Hochul strutted Thursday at a celebration for a future Micron semiconductor plant outside of Syracuse. The groundbreaking for the factory won\u2019t happen until 2024, but Democrats needed something, anything, to pretend they care about the […]<\/p>\n","protected":false},"author":1,"featured_media":16941,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2124,415,3367,15,83,2370,3369,3364,3370,3368,38,3366,216,3365],"class_list":["post-17689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-biden","tag-boondoggle","tag-chip-act","tag-congress","tag-corruption","tag-cuomo","tag-gasoline","tag-hochul","tag-kaloveros","tag-micron","tag-obama","tag-semiconductor","tag-subsidy","tag-syracuse"],"yoast_head":"\nNew York Post: Biden Pitches Failed Economic Vision - James Bovard<\/title>\n<meta name=\"description\" content=\"Biden and Hochul trumpeted corporate welfare for a semiconductor factory. 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