A coalition is coalescing around the
Industrial Finance Corporation Act of 2021, sponsored by 7 U.S. Senators, all Democrats.
| quote | The legislation has been endorsed by the Information Technology and Innovation Foundation (ITIF), the Niskanen Center, the Berggruen Institute, MForesight, The Engine, and the National Defense Industrial Association. |
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U.S. Senator for Delaware, Chris Coons; August 12, 2021.
https://www.coons.senate.go...vestment-corporationCondensed into just two viewgraph-style pages, the senators provide a simple overview of why they support this bill.
https://www.coons.senate.go...FCUS%20117%20v.2.pdfExtrapolating from a press release from May 18, Republican Senator Marco Rubio
might be among those who would support this bill,
"Rubio Argues for American Industrial Policy in Legislative Efforts to Combat China"https://www.rubio.senate.go...orts-to-combat-chinaAtlantic Magazine staff writer Robinson Meyer has given the idea a "thumbs up."
| quote | The decline of American manufacturing is one of those problems that everyone knows about, but that nobody seems to know how to fix. Tariffs and tax credits have failed to much improve the situation. Instead, we hear excuses: Labor is too expensive in the United States, or energy is too costly. (In fact, some of the richest countries in Europe have no problem maintaining a manufacturing sector, and the U.S. enjoys significantly lower electricity costs than China.)
Perhaps the problem is simpler: The U.S. doesn’t have a high-end manufacturing sector because nobody will finance one. Small and medium-size American companies now struggle to borrow the billions of dollars necessary to finance a new factory, especially if those loans take 10 or 20 years to pay out.
“The U.S. financial system isn’t very good at funding things that have very modest returns and take a long time for those returns to be realized,” Nahm said. You could be the most talented engineer of your generation and launch an advanced battery start-up out of MIT, he said, and you would still battle to obtain the $3 billion needed to finance a new production line. More established firms cannot access “patient capital” either, he said: Where they once would have borrowed from local banks, many of those institutions have since been absorbed into national chains. |
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"The Bill That Could Truly, Actually Bring Back U.S. Manufacturing"Robinson Meyer for The Atlantic; August 18, 2021.
https://www.theatlantic.com...-corporation/619793/[This message has been edited by rinselberg (edited 08-19-2021).]