Preliminary Results of "Bidenomics" Disappoint Experts: Almost 40% of Industrial Initiatives Announced in the First Year of the Program Have Been Suspended or Delayed
Journalists at Financial Times conducted a critical analysis of the economic program's success in the fields of "green" energy and the development of the technological supply chain, which was presented by the Biden administration four years ago. In monetary terms, the volume of large industrial and manufacturing projects in the U.S. that have been delayed (ranging from 2 months to several years) or frozen has reached an impressive sum of $84 billion. This accounts for nearly half of the total announced initiatives—114 large projects totaling almost $228 billion, including the relocation of productions to the U.S. from other countries. Currently, the volume of projects that have reached the operational stage does not exceed $10 billion.
Among the key delayed projects are a battery manufacturing complex in Arizona ($2.3 billion, LG Energy Solution), a lithium processing facility in South Carolina ($1.3 billion, Albemarle), solar element and panel factories in Oklahoma ($1 billion, Enel), as well as semiconductor plants near Rock Hill ($443 million, Pallidus), in Kansas ($1.8 billion, Integra Technologies), and Arizona ($28 billion, the second phase of TSMC's plant with investments totaling $40 billion). The list continues to grow, putting the White House's long-term strategy to restore the U.S. industrial base at risk.
Over 100 representatives of American businesses and local authorities, interviewed by journalists, said they had to revise their investment plans amid market volatility, declining consumer demand—including for electric vehicles—rising costs, and a shortage of qualified personnel.
The sharp change in business sentiment occurred despite unprecedented incentive laws: the Inflation Reduction Act (IRA, with incentives available until 2032) and the CHIPS and Science Act. Their combined investment effect was estimated at over $400 billion. This amount included direct grants and loans from the U.S. government, as well as tax incentives. Most respondents also pointed to increasing political risks due to the upcoming November elections—Republicans are hostile to Biden's IRA, with Donald Trump already promising to repeal the law if re-elected.
Source: MM on Telegram