How Biden's Inflation Reduction Act changed the world | FT Film

The US was for decades the exemplar of free market globalisation. That changed with Donald Trump’s 'America first' agenda. President Joe Biden’s landmark Inflation Reduction Act continues the push for re-industrialisation by using tax credits, loans and grants in a bid to create a domestic clean energy supply chain. The FT looks at three companies using IRA incentives to invest in the US and examines whether the legislation signals the end of globalisation
#manufacturing #globalisation #useconomy #joebiden #inflationreductionact #trade #tradewar #industrialstrategy #protectionism
00:00 - What is the Inflation Reduction Act?
03:46 - Georgia embraces clean energy dollars
08:20 - General Electric brings jobs back to the US
11:49 - How the Inflation Reduction Act changed the world
14:15 - What the Inflation Reduction Act means for Europe
16:22 - Trade tensions and international relations
19:06 - China remains the factory of the world
22:06 - What the Inflation Reduction Act means for the global south
24:14 - A second Trump administration could change everything
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[@MarkLeonard-xn8zs]

The whole talk about "reverse" market crash (real estate and stock market) basically argues that we are nowhere near done with inflation and that we might actually experience "hyperinflation" in the near future combined with accelerating poverty levels across the nation or going thru a historical economic depression...those are the extreme conditions that have produced the reverse market crashes in most examples I've seen. I personally don't see anything that extreme coming, but who knows.

[@JamesWilliam-bz1nm]

Focus on two key objectives. First, stay protected by learning when to sell stocks to cut losses and capture profits. Second, prepare to profit when the market turns around.I recommend you seek the guidance a broker or financial advisor.

[@SmithJones-yx1ut]

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Strategists have been aiding folks in recording gains over 250k just in a matter of months, so I think there are alot of wealth transfer in this downtime if you have someone who knows where to look like i do.

[@SmithJones-yx1ut]

'Tenley Megan Amerson' is the manager I use. Just research the name. You'd find necessary details to set up an appointment.

[@DavidLuiz-nd3dn]

I just copied and paste ''Tenley'' whole name into my browser, and her website appeared right away. You've saved me several hours of arduous research, therefore I appreciate it.

[@loktom4068]

You and the others missed the entire flaw of the US government policies. This is why you never see it coming until it finally comes in full impact, then too late, kiddos.

[@jaredspencer3304]

The reaction of European governments to the IRA is a perfect illustration of why Globalization, as it currently stands, doesn't work. It creates a global market, but not global citizens. People still belong to their countries, not the globe. To protect their citizens, individual European countries will compete with each other, because their citizens are ultimately who they're held accountable to (ideally). The US sent its manufacturing base to China, which was great for "the global market", and terrible for the citizens of the United States. So you either need to move past the idea of the nation state, or you have to abandon the idea of an unrestrained global market. You can't have both over the long term.

[@georgehoffmann4148]

As long as you ignore the benefits of a global supply chain for the customer, like for example low prices for goods (though not services).

[@guru47pi]

The difference between 'global market' and 'global citizen' is very well put. For years I had tried to explain it by asking why I have fewer rights, and far less mobility than a corporation, than money, than objects. The fact that there's no such legal entity as a global citizen is exactly why globalization needs some correction or counterbalance. -and let's be honest about the race to the bottom with subsidies to take companies. Many countries, especially China, were doing that already; the US is just finally putting effort into competing on the same level

[@havencat9337]

look where this got you as a consumer, you have the most expensive EVs and solar panels. is that smart? you tell me...

[@csn10]

@@havencat9337 We have to balance that against lower unemployment and higher wages which enables consumption, and now protecting the supply chain. Not that this should be the overriding metric. Some governments for decades have used economist to convince us to see ourselves as consumers first and producers second, while others have mouthed the globalization principles but remained protectionist. The globalists in fact, have been merely acting in the interest of maximizing profits for multinational corporations, utilizing cheap labour, sidestepping environmental protections and the rights of countries and their citizens....

[@mathyeuxsommet3119]

That's a false dichotomy,protectionism only profit to a small part of the economy and the rest suffer a lot.Free trade is good for everyone if europe can compete with American they should get better.

[@kgeo753]

I'm glad someone told this story clearly. Neither the President's communications team nor his campaign seem capable of doing so.

[@Dave-bz4pb]

They sold it as an inflation reduction bill. That's all they cared about to pass this giant pork bill.

[@kgeo753]

@@Dave-bz4pb Who cares how they sold it? It had to be sold. Inflation is normal, we've never had runaway inflation, and it's just about back to normal levels. Republicans used to describe infrastructure as a necessary component of economic growth. Now it's just "pork." I think they're salty that Trump couldn't get an infrastructure bill through despite describing himself as a "builder" and "deal maker." He was a failure This spending is overdue and Biden got it done. Cry about it.

[@timeflex]

And especially at 17:23 -- the comparison to the 1914.

[@MaxRuso]

Lol

[@richardalvarado-ik9br]

Your probably right since larry kudlow over at the other side will tell you that your appliances from 1996 should still work today.....a new Hyundai Ioniq cost the same as a Ford, Toyota or Chevy. I remember back in 2009 when analog TV came to a end and it happened at the behest of networks and telecommunication companies not racist old blond billionaires. SO IGNORE THE MAGA BLATHER.. BYE!!!!!

[@ivanalcazar9060]

I'm glad to see America rebuilding it's industrial core. For far too long, we've freely given away our consumption and production of goods. Time to bring more back to the United States and ensure that we have a certain industrial capacity for both our own consumption and national security reasons.

[@surplusking2425]

Yes...except most of them are filled with cheap labor from Latin America and that make Latin American country more left-leaning.

[@sawittwo]

It’s been a long time coming.

[@MrExZacktly]

I'd be surprised if Biden is really doing this for America's working class and more for geopolitical reasons. We may just see manufacturing rerouted to India or Mexico.

[@rich-bk7md]

Us government: we got this Green new deal: americans: we don't want it Government ok we'll call it the inflation reduction act: Americans: we love it

[@Sovereign_Citizen_LEO]

It's total and complete propaganda. The Financial Times is a partisan Communist Rag (anti-Basic Economics and common sense/ yellow propaganda journalism). This is absolute nonsense. You cannot create actual economic growth through debt any more than you can force technologal advancement ahead of it's time in an attempt to presumably deal with non-existent manufactured conspiratorial problems. This Agenda/ Scam which is actually a continuation of Pre-American Imperial/ Colonial European Globalist Usury International Banker/ Royal Family Conspiracies to destroy the Western Middle Class, prevent Developing Nations from Developing (to force the same Communism upon them which has been forced upon the West) has the hidden underlying centuries old Goal to control Humanity and the entire world (all resources, all assets, all wealth, all politics, all nature/ environment) completely. It's all about total control. That is what the [non-existent completely lacking in any scientific proof let alone evidence whatsoever] Global Warming Fraud is all about.

[@PolicyFailureIsExpensive]

It is not the end of globalization. It is moving to avoid the complete annihilation of select manufacturing in various economies. It is a recognition that when you build here, you also have a chance to protect the workers, the environment, and the customers here. It is reducing potential liabilities.

[@abdiganiaden]

Not to be harsh but business just cares about the numbers as in dollars. No one is going out of their own way to have extra costs without some immediate profit

[@thaaatheef]

Its romantic to think that companies will suddenly stop flocking to where labor is cheapest; & that is not easily found in US...just look at new semi fabs struggling to hire talent

[@scottduncan92]

​@@abdiganiaden Companies lost a lot of money due to broken supply chains after the beginning of the pandemic, so yes they are monetarily incentivized to diversify their supply chains and "near-shore," including building more manufacturing in the US. It's also important to understand that labor in countries like China is not as cheap as it used to be.

[@SanderSovrlic-alesov]

Why would foreign and domestic billionaires and corporations hellbent on cutting costs want to manufacture in the US where worker’s rights and unions and minimum wage are all a drain on their purse? Subsidies or no, it makes much more sense to go to China or some tin-pot country and exploit the people there for maximum profit. You know, like they’ve been doing for the past 50 years.

[@johndoh5182]

@@abdiganiaden So, you don't think those 25% tariffs had anything to do with companies shifting manufacturing to India, Vietnam, Mexico, etc.... Oh yeah that's right, it effected their bottom line so they DID move from China. Yes you are correct, companies ONLY think about the money and you can look at Apple as a prime example where they still have good sales in China so they will leave a certain percentage of manufacturing there REGARDLESS of the VERY unfriendly laws the CCP is passing that puts Apple's reps in China in danger of being tossed in prison for the rest of their lives. The bottom line for many companies were affected by large tariffs on goods coming out of China and it was a significant list. After that it was sanctions of products that could be sold TO China that had a big effect, and that hurt the profits of different companies including Nvidia who if they could would get paid directly from the CCP to build them all the servers they WANT because they are ALL ABOUT the money and could care less about US security. With every change in sanctions on products that can be sold into China, Nvidia keeps creating new products that CAN be sold into China. But these companies are now looking at the Indian population the same way they did the Chinese and feel they can recreate or do even better in India because the Indian govt. isn't trying to steal every last bit of IP from these companies.

[@hamzamahmood9565]

Geopolitics aside, the fact that Mexican labor is now 1/3rd the cost of Chinese labor means pure economics alone will force the American industrial base to relocate closer to home. If the current rate of factory build out continues alongside our energy independence, U.S. can reach pre-WW2 levels of economic isolation within 10 years. And I'm all for it!

[@koltoncrane3099]

I’m not. I think economic isolation is okay as long as free trade is promoted still. I can just imagine environmentalists thinking mining in Mexico is moral but not in the U.S. Isolation is okay, but we really need a Great Depression or something tk force austerity. 50% of all millennials live wjtb family cause they can’t afford a house thanks tk the government buying up a third of all mortgages and two decades of cheap money. Sure the Us can transform and be in isolation. But does that mean a higher standard of living for younger generations or for boomers that’s benefited from 40 years of ever lower interest rates?

[@koltoncrane3099]

Until we get a free market type mentality the U.S. IS. screwed. Some people are pathetic saying look at the U.S. and how they responded after Pearl Harbor. We can do that today if needed. It’s like no we can’t. We can’t just line things or build things economically. You mentioned exploiting Mexicans. That’s one way to keep costs down but when Biden is also closing down tons of public land tk mining the US is shooting them selves in the foot. Americans are going to have to exploit australia and Latin America if they want more isolation but we’re never going back to pre WW2 levels. I talked to an old miner in Colorado. He said well Never go back to ww2 type Production or even mining until there’s a ww3 and we actually need inputs that we can’t import. It’s sad but true.

[@Avantime]

The cost of labor is only significantly relevant in certain low-end industries like textiles and toys, which is why so much clothing is made in Bangladesh, where labour is even cheaper. The value added processes depends on the skill and reliability of the workforce (e.g. work ethic in China such as '996' are such that no average Mexican would want to emulate) as well as automation and economies of scale. China already has the world's biggest domestic market for many goods, from cars to computers, and in certain segments like EVs, solar and wind turbines, it completely dwarfs the rest of the world. And stuff just happens much faster in China. Everything gets done faster, everything gets built faster, and there's no red tape. And like Japan and South Korea before them they're moving up the value chain fast, too fast for American politicians. Mexico will absolutely take over a lot of the business China would lose in a tariff/sanctions war against the US, but make no mistake those affected Chinese companies may themselves end up dominating the Mexican market without ever touching the US. Don't be surprised to see Mexicans assembling US-bound Fords and Toyotas, while those same factory workers themselves drive BYDs, MGs and Havals to work.

[@brentsrx7]

You want the Chinese people to understand and empathise with American ideas, to prevent war.

[@ralphemerson497]

Why is it OK to pay a Mexican laborer $10 per day but his counterpart in the US will not work for less than $30 per hour?

[@leondonald]

With Market tumbling, Inflation Soaring, Is the stock market actually getting better or could this be the regular new year market manipulation to entice new investors? I'm currently sitting on $500k inheritance and just wondering what better assets than stocks to invest in right now

[@donna_martins]

You need a certified financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment

[@robert-1miller]

No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.

[@Walter_hill_]

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[@robert-1miller]

'NATALIE NOEL BURNS' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

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[@Michael-pq4wd]

My Step-dad is from Holland. He told me, through this ACT, the U.S. bought a LOT of very expensive chip-manufacturing machines from the only company in the world that makes them - which is based in Holland. I have to admit, Biden surprised me here.

[@nightking8490]

The good old ASML

[@SafetySpooon]

Yet another reason to not trust the general media; they are selling themselves rather than the truth.

[@BrandonCRFC]

Biden's move to secure more chip hardware is needed militarily. Not like he did it for our economy, he simply knows China is on the move in Taiwan. It was the only intelligent policy he and his handlers have done.

[@jaywulf]

"Biden surprised me here." You mean he is not a baby eating monster? Wow... maybe expand your information intake.

[@bardsamok9221]

Yeah good ol USA making essential steps to secure and stabilise chip supply at this critical time.

[@casparcoaster1936]

Surprised I never grasped what the hell the IRA is... this was really eye opening about how big a deal this is in historical perspective... and really well done. Much obliged!!

[@sirrathersplendid4825]

There are many good things in the IRA, but it’s such a bloated behemoth of an act that many aspects that should’ve been properly reviewed never got adequate scrutiny because there was no time. There’s probably two or three hundred million dollars of pointless spending that would never have got passed had it been presented to the House in smaller acts. Edit: I meant 200/300 Billion not Million.

[@WisdomRanger]

@@sirrathersplendid4825 Realistically, $300M is pocket change at the Federal level. ~$1.50 from each taxpayer is not going to make a difference to anyone. Pinching pennies is not how we solve the country's long term debt problems and really just gives cheapskate "vibes". I am all for responsible government spending, but there are bigger fish to fry, especially when theoretically* the IRA is revenue positive over the next 10 years. *: The legislation as a whole is at worst revenue-neutral, but it seems like fairly conservative assumptions by OMB are used to make it at least mostly-true that it revenue-positive.

[@SalieriM]

@@WisdomRangeryou forgot about 3 zeroes, literally an order of magnitude off. It’s a sum that would be enough to give us free healthcare for a few years. It’s the largest investment in clean energy in the history of the world. And for it to work, it will have to be renewed. The subsidy can’t go away any time soon so this is just the beginning. Forget China, this is such a big deal that Europe is freaking out. All of this is in the video you clearly didn’t watch.

[@sirrathersplendid4825]

300/1300 is over 23%. That’s not chump change. If you can shave 20% to 25% off all state expenditure you could probably balance the budget. The over-bloating of bills like the IRA in order to smuggle through questionable legislation is undoubtedly one of the key reasons US debt is growing so fast.

[@greg2502]

​@@sirrathersplendid4825t was clearly explained to you why it is revenue neutral at worst

[@shellylofgren]

Since Biden took office, there seem to have been more unfavorable results in America. These results include effects on the markets, such as price declines and sharp increases in inflation, as well as bank failures. I wonder if the sudden increase in interest rates will help value investors or if it would be wiser to stay away from the stock and financial markets for the time being.

[@berkrix4312]

To "buy the dip" It will be profitable in the long run. However, investors should be wary of the bull run. It is advisable to connect with a skilled adviser to fulfill your growth objectives and prevent mistakes. High interest rates typically result in lower stock prices.

[@jeffery_Automotive]

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[@Jessicahensley.]

Interesting! Good day! Although I'm new to investing, I've heard that now is a wonderful time to buy. I have some money in my bank account that is just sitting there, and I really want to make it work for me, especially with the current rate of inflation being so high. Do you have any knowledge about this coach who supports you? I'd like to research them and find out more.

[@jeffery_Automotive]

I personally work with 'Julie Anne Hoover’’ she covers things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.

[@Jessicahensley.]

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[@rokasbarasa1]

Very good for the US citizens. I hope we in the EU can pass some similar policy to help our citizens as well. We need to get rid of our dependence on cheap countries production. We have eastern Europe for that.

[@NukaEatsPepeni]

so nice to see a promoter of the EU speak about eastern Europe as if they're third world countries, your words are the reason why the EU is a failure.

[@rokeshp2638]

The sarcasm

[@Riggsnic_co]

Great video, a number of the most eminent market experts have been expressing their views on the severity of the impending economic downturn and the extent to which equities might plummet. This is because the economy is heading towards a recession and inflation is persistently above the Federal Reserve's 2% target. As I'm aiming to create a portfolio worth no less than $850,000 before I turn 60, I would appreciate any advice on potential investments.

[@hermanramos7092]

There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.

[@martingiavarini]

I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.

[@bob.weaver72]

Could you possibly recommend a trustworthy advisor you've consulted with?

[@martingiavarini]

When ‘Natalie Lynn Fisk’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

[@bob.weaver72]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@kingofthend]

Industrial policy is good and biden deserves more credit for taking these steps. It's insane how much industrial capacity has been lost after the cold war ended.

[@ryanburchett8455]

Unfortunately, Biden didn't invest enough. Now we have massive icebergs floating around.

[@MM-kk8uh]

Remind me who was it that wanted "America first" and to "Make America Great Again"? Last I checked it wasn't biden

[@peterponcedeleon3368]

Regulations and taxes are to blame. But now we are going to spend like never before to bring industry back, completely negating the taxes and regulations of the past. So in other words, we went nowhere, but is costed trillions of dollars. Government must get out of the way and stay out of the way. That is the only way.

[@coreyleander7911]

It’s disgusting how little credit he gets for this. European news like FT covers it more than American news

[@coreyleander7911]

@@ryanburchett8455wut

[@jeneric989]

I thought Biden was part Irish but I’d never had thought he would support the IRA to such an extent, especially without backlash from the British.

[@CharlesCharles-bb6qx]

Trump doesn't even know what the IRA is.

[@CelticSeer]

IRA here = Inflation Reduction ACT!

[@swapshots4427]

Are you being facetious?

[@jeneric989]

@@swapshots4427 Maybe? Are you calling this economic IRA policy a serious thingy or the bus bombing IRA a serious thing?

[@swapshots4427]

@@jeneric989 we are talking economics , I would hope...

[@ReflectionOcean]

- Overview of Inflation Reduction Act's objectives (0:10) - Discussion on reshoring and reducing China dependence (0:23) - Analysis of job creation and investment impact (3:29) - Insights into international reactions and economic shifts (7:48) - Consideration of the act's long-term sustainability and global influence (11:01)

[@hotshot-te9xw]

What are your thoughts on our progress in this fight?

[@FlamingGuitar123]

This is an excellent step. Hopefully it is the first step to give America the confidence to tackle the rising cost of living, education system, prison system, and other issues facing our nation.

[@MHG796]

Usa is doing very good compared to the rest of the world

[@szahmad2416]

@@MHG796 Canadian here. No, you're not.

[@Pan_Z]

@@szahmad2416 Imagine being from Canada, where the median price of a home has doubled since 2015, and then mocking Americans. All the G7 countries have struggled in recent years, but Canada has notable declined fastest.

[@szahmad2416]

@@Pan_Z (1). You’re right on home prices. (2) Y’all are still a third world country amongst developed countries…and that’s why Trump is likely gonna be re-elected.

[@Historyswatching]

@@MHG796🙏🏽

[@jerryware1970]

There’s still going to be global trade, but supply chains become more disperse across geographies and the United States is bringing strategic manufacturers closer to home…here and Mexico. With automation, AI, less transportation costs, etc costs will be slightly higher at first then lower over time, but quality will be much better. Also the leverage China currently has over us is significantly reduced.

[@talkinghand4839]

Spot on.

[@C-Culper4874]

The problem is that it isn't the manufacturing we need to survive. These projects don't make seals to fix a water leak. Brake parts for a truck. The list goes on and on. We are still reliant on China to make it day to day.

[@Myusername468]

​@@C-Culper4874so because we haven't fixed anything it isn't good? This is just the first step

[@ElisaacGuzman]

​@@Myusername468exactly

[@terryl858]

Seems like brics has all the good stuff that Americans need Seems no one talking about the raw materials short time gane long time pain

[@ac1888]

I love it. Bring everything back where many of the technologies were invented. Good for the American workers and the US economy.

[@Camille738]

Alright

[@Otosama420]

This was literally Trump's idea that Biden stole, just like the election.

[@MSDGroup-ez6zk]

The USA is history.

[@cooldude7062]

Do American want to pay for that? Cooperation is all you really need.

[@freeforester1717]

There is no climate crisis. The whole rationale as to the actual need to go electric (reducing carbon dioxide emissions) is based on a provable lie, one that professors Happer and van Wijngaarden at Princeton have conclusively proven that man made carbon dioxide emissions - themselves but a very small part of global total (natural origin) emissions - do NOT drive climate change. See Dr Thomas P Sheahen’s presentation ‘Methane - the irrelevant greenhouse gas’ for details, or look up either of the professors named on Tom Nelson’s channel.

[@GJ_DM]

Everyone is talking about the "end of globalism". It's the end of unilateral, US imposed neoliberalism on the globe. The US was happy to export it's industrial base to other countries so long as they were politically weak and subservient to US influence. The rise of China, a defiant, politically independent manufacturing power house suddenly threatens US domination in any market it chooses to dominate. Japan threatened the US in a very similar way in the 1980's, however it was never a real threat to US domination as it is politically subservient to the US. The US simply made the Japanese sign the plaza accords, effectively shooting themselves in the foot. China will never agree to such unilateral agreements with the United States, and now the US seeks to undermine and destroy a competitor to it's dominance in an imperial system set up to serve one country. Globalism happily cracked open global markets, however conveniently never mentioned was that globalism cracked open global markets specifically to AND for US corporations, with the backing of the US State Department and military. Any global US company could easily outcompete a foreign competitor either by use of greater access to capital, military force, and political subversion. If European industries came up with a new way to manufacture something, US corps. would simply steal the process and quickly patent it in the US, shutting out the foreign company from US dominated global markets. China is largely immune to these financial and economic tricks, and is thus why the US suddenly now is putting up economic protectionism across many sensitive industries. Tesla is beginning to beg for protections from Chinese EVs. They simply fear the capital, labor and political leverage china now wields in the same way Yugoslavian auto manufacturers feared the US car industries from leveraging on them. Globalism was all fun and games for the United States when we were the sole dominating force in the world, but that is no longer the case, and now, the magical term "globalism" leaves a bad taste in the movers of capital within the US. Our imperial edge is dulled.

[@michaelmejia8678]

It is fantastic that America is finally investing significantly in upgrading its infrastructure and supply chains! Seeing manufacturing return to America after years of outsourcing is truly beautiful! Make More In America!

[@swapshots4427]

Everyone needs to be grateful for Biden and Support Him.!

[@AsaelTheBeast]

@@swapshots4427 The guy who the supreme court judges as being to mentally incompetent to stand trial? That Biden? Personally, I'm not looking forword to a rematch between the two Alzheimer sufferers. I'd rather have a real damn candidate- doesn't look like we'll be seeing one any time soon though.

[@swapshots4427]

@AsaelTheBeast Do you think a President is a one man show? There are many, many talented and dedicated people who work with and for him & the country. You should pay more attention to all the positives being accomplished rather than being another dimwitted mockingbird.

[@michaelmejia8678]

@@AsaelTheBeast Buddy, it is going to be Biden vs. Trump in 2024. You judge candidates based on surface-level observations, while I judge candidates based on what results they deliver because that’s what really matters in the end. Trump promised infrastructure, but Biden actually got it done! I know who I am backing.

[@AsaelTheBeast]

@@michaelmejia8678 To Clarify. Biden can't be *legally* held responsible for his own action because there is nothing going on between his ears. He is litterally incapable of making sound decisions. Do you understand? You are voting for a guy who doesn't even *know* where he is most days, couldn't tell you the year, and about a week ago insisted that he had a recent meeting with a man that's been dead for decades. He's not capable of being president. That's just the facts. He's not even capable of making decisions for himself *according to the law*. Are you comprehending what all this means?

[@CODstreamz]

Globalization has destroyed American manufacturing. In business it's all about the profits. My previous employer has gone as far as removing distillation columns, and relying on China for raw feed.

[@sirrathersplendid4825]

US firms continue to outsource and subcontract jobs abroad. My wife who works in US telecomms had her entire department transferred to an Indian partner just last week.

[@aminy23]

@@sirrathersplendid4825 The day lockdown started, I had said I'm not afraid of the virus, I'm afraid of the aftermath of political action. Zoom and remote learning was a great advantage early on, however when paired with factory closures - we built a platform to rapidly outsource American jobs. Silicon Valley relies on H1B workers, and now there's no reason they can't hire workers in those countries instead of in the US.

[@digitaldemocracyai-rob]

Whisky distillery?

[@CODstreamz]

@@digitaldemocracyai-rob silanes

[@victuz]

The United States is only losing to China because the workers in the United States are undervalued and can't afford housing, healthcare, and education.

[@incognitotorpedo42]

After half a century of watching Asia eat our lunch because they had smart industrial policy and we didn't, I'm very happy to see that we've finally come around. FT, thanks for this. The number of people who have no clue about the IRA is enormous.

[@digitaldemocracyai-rob]

Asia didn't eat your lunch..... You moved the canteen to China, and it sold you cheap food.

[@sawittwo]

Who started the move in the first place?

[@timothypaulino8454]

​@@digitaldemocracyai-robsmart economic policies, like no limited wage and workers protection. Manufacturing in China isn't cheap cause of genius or humanitarian economic policy

[@DD-ld1xq]

​​@@timothypaulino8454no ridiculous environmental constraints helped too. Isn't it funny that the same people promoting "green" garbage in one country will never suggest taxing imports from countries in Asia that don't care about such things. "Save the planet" my posterior.

[@Usammityduzntafraidofanythin]

@@digitaldemocracyai-rob You don't understand the expression "eat their lunch" do you?

[@shannonkacherovich8997]

Excellent portrayal of the Inflation Reduction Act and how it's perceived domestically and internationally. I'm glad I watched this.

[@CORZER0]

Guess you were completely lost on the part that the act has the exact opposite effect of it's name and intended purpose. You bought a lie, like pretty much all the rest of the proles.

[@shannonkacherovich8997]

@@CORZER0 Read my comment carefully. I made no such assessment of the law itself. I'm still learning about it. I do, however, value the journalism that allowed viewers to absorb different viewpoints of the same law and what each interviewee expects from it. Thanks for replying and opening that dialogue.

[@CORZER0]

@@shannonkacherovich8997 Absolutely. I'm hopeful that many more will see our dialogue and come to understand that this is pure statism propaganda. It's all a lie.

[@realchiknuggets]

@@CORZER0 "the proles"? what dogwhistle is that?

[@CORZER0]

@@realchiknuggets dogwhistle? How long have you been a parrot? Do you watch CNN?

[@ChristopherSchreib-yn1vu]

The more free, clean energy any society has, the STRONGER that society’s economy IS!

[@Ashes2New]

I found this documentary very well done. The IRA & Chip Act was well intro'd within the video and the comments from the various individuals helped to provide multiple points of view from the US administration, general financial folks, some domestic producers, and our EU point of views. I truly enjoyed the highlighting of the use of statecraft and establishment of working with other nations for the US to make the efforts of the IRA to work. From South Korea, to trade with Canada & Mexico, etc. Liked & subscribed. Please keep up the great content. Cheers!

[@curiaregis9479]

It's propaganda meant to disguise exploitative economic parasitism as "help" from the government. Ridiculous, corrupt, dumb empire is what we are now. The government would massively improve the economy by not extracting value from the dollar by use of fiat currency money-printing. They could stop with the massive subsidies to big pharma, big agriculture, big tech etc. They could stop the special legislation that allows these interests to be "too big to fail" and hence encourage business practices which ultimately pay billions to the elite while endlessly charging the consumer and middle class citizen. They could end the massively wasteful military industrial complex and become more sensible less exploitative in our foreign policy. And so on. Instead, they pretend to "incentivize," which simply means the government spending billions of dollars the way GOVERNMENT wants it spent, not the way the private citizens (who that money is taken from) would have spent it. It means GOVERNMENT is going to take massive risks with OUR money, paying all the usual parasites at every step for various things like "environmental" R&D and technologies- things which would NOT be supported voluntarily in a truly free market but which government can give the ILLUSION of viability to by use of a massively expensive public expenditure. It's all CORRUPTION. Just another transfer of wealth from the middle class to the 3%. Unfortunately, slick propaganda like this hides the true nature of how economically unviable it all really is and how government hides their greedy, exploitative nature by pretending to advance goals that no reasonable person would disapprove of. It takes someone with more than a propagandized, normie perspective on economics to understand just how corrupt and wasteful it all is. Oh yes, and the establishment can't help but make this propaganda include a hit piece on Trump because they hate anyone who disrupts their control.

[@coreyham3753]

Agreed. Very informative overview about the IRA and the impacts of it. Kudos should go to Biden and the democrats for getting major economic legislation done like this. Unfortunately you will never see anything like this from Chump and the republican party. Why americans are not giving Biden credit for far reaching economic actions like this is simply wrong and evidence of the misinformation that is the hallmark of the current republican party.

[@octobrain23232]

The IRA basically gives the US an industrial policy which it has lacked for the past 4 decades or longer.

[@reichjef]

It’s been a long time coming. There were similar bills attempted during Obama, but after the 2010 “schlacking” it became almost impossible to get passed.

[@DevineAbyss]

Usually I would think that Governments shouldn't subsidize their companies just to pull production on shore. This makes for a very distorted market where the market is not functioning and money is wasted. Stuff will be produced inefficiently and innovation is stifled. BUT I see 3 exceptions: 1. If it is something that your society cannot do without and the supplier econonmies are not diverse enough. For example a country that does import all of it's food and can only import it from a single country is gambling with their future. If they can they should and must create some food production on shore. 2. If it is a global distaster like climate change that has been known for decades and every country is still moving incredibly slowly. The progress in carbon reduction clearly outweighs a little damage to the global economy. And I don't think it's even a contest long term. The benefits outweigh the disadvantages by so much. 3. If you are currently dependant on a hostile autoritarian regime, you should lessen your vulnerability. We shouldn't depend on China for solar technology and receive all fossil fuels from Russia and Saudi Arabia. These are not countries you should stake your existance on. Especially with all the rising tensions. It is probably ok to depend on fellow working democracies. You shouldn't depend on a dictator that wants to ruin or conquer you.

[@LesMiserables999]

How awesome would it be if Canada-US-Mexico developed a system where they each benefited from their unique resources and abilities.

[@something1351]

Nafta

[@erickesquivel8589]

They don’t care about the environment. Here is what is really going on - Declining Profits: Reduced profitability in China compared to previous levels. - Loss of Control: Companies' realization that they couldn't control China as easily as they thought, unlike their influence in U.S. politics. - Return to the U.S.: Factors prompting companies to relocate operations back to the United States.

[@RicardoSantos-oz3uj]

Mostly because salaries are higher in China than Vietnam and other countries of the area. So is no longer the cheapest labor available. Plus all the stealing of IP that went on. And if china gets o out their development country status. All the mail will be paid at a normal rate. Instead of having the USA pay the China share on all packages. If that ever happen, it will be more expensive to do deals with China. As they could no longer send the products for cheap (again taking advantage of Europe and USA, we pay more so that they pay less).

[@Mosern1977]

This is also part of economic war against China, and making sure China does not surpass US as the most important global economy.

[@liammitchell2225]

Thank you for the video, this cleared up the IRA quite a bit. Also just interesting to see the political rhetoric: you have the GOP touting this as a pro-China agenda when it really just seems like the continuation of protectionism. I'm not an economic expert, but it also seems like the fight against climate might also be a fight against globalism. I'm really fascinated to see what the next 20-30 years looks like.

[@johnhale6320]

GE General Electric (GE) is a multinational conglomerate that manufactures products to serve many industries, including renewable energy, aviation, healthcare, and appliances. The appliances division of GE was purchased by the Chinese-owned Haier company in 2016. Four years prior, the same company acquired the New Zealand appliance maker, Fisher & Paykel. When the Haier company acquired GE, they wisely retained the right to use GE brand names through 2056. Today, Haier manufactures GE, Hotpoint, Cafe, Profile, and Monogram branded household appliances. Question. How do you seperate us from China when US owns a lot of the China Companies and a lot of the China companies own USA companies?

[@rapidsqualor5367]

Many of these Chinese industries were created as a jobs program. Many are not subject to the discipline of the marketplace. I think China is going broke. Belt & Road doesn't seem to be going anywhere. China has over 700,000 empty apartments. People loosing their bank deposits. Orders are falling. When it happens the leadership may try to distract the public with a military action. Even without a war they could fall from internal problems and financial collapse. Historically, what private industry in country stays in country eg American hotels in Havana. My point is the IRA recognizes this problem of dependence.

[@hi4806]

@@rapidsqualor5367China will not collapse, Russia will not collapse, and the American media are basically nonsense. The United States can't even handle Yemeni armed forces in the Red Sea, and its allies don't participate in military activities.

[@myriamkaye3418]

Shipping every single product we buy across the entire world has been a climate disaster. It does need to change.

[@Slide61]

Private Equity will be relentlessly working against this effort. Unless PE is deincentivized its pointless. PE has been at the tip of the de-industrialization spear for the past 40 years taking over companies, offshoring jobs to increase margins, and leveraging them up creating zombies. The trillion dollars of dry powder currently in the PE war chest focused on economic destruction will be like a hundred mile an hour head wind to this effort over the long term.

[@somecuriosities]

How do you deal with a problem like PE?

[@alan2102X]

Well, where was that $trillion when it came to the IRA? It passed. Not saying you are wrong that powerful forces wish to stop this trend; only saying that they are apparently not quite as absolutely in control as you seem to think.

[@mastercc4509]

Private equity it too far entangled with authoritarians internationally. Bezos is buying 1 million homes to keep prices high. Its an existential struggle.

[@Jeevanm71]

Now PE will step in and automate workers rather than offshore workers

[@MattLindon-wv8jy]

The reality is nothings going to happen, because within this historic legislation they made no real changes to any permitting requirement which is arguably the largest stopgap in terms of duration impacts for energy infrastructure in the US. It doesnt really matter if theres a push for domestic production if it still takes you 8 years to procure the land where youplan to put the solar farm..... Also the energy plan in general is to put it nicely indicative of an approach made by someone who doesnt understand how the energy industry operates. We have this push to massively grow generation, yet you cant add generation if you dont have sufficent distribution infrastructure in place to carry load to consumers. This was already a major issue prior to this bill being passed. Yet in this bill 80% of the allocations went to generation, while there is still about a $2 trillion deficit of spending needed in distribution (as per published grid assessments by IEEE, EPRI, FERC, ASCE, NERC, ANL, PNNL, NREL, BNL, LNL, OE, OEERE, DOE, EIA - kinda makes you wonder who in the world did the research to get the figures they put into the allocations for the bill in the first place). Not a great plan imo..... So while Biden is celebrating the solar and wind farms, just note that FERC (Federal Energy Regulatory Commission) reported in November that 570GW of solar and wind had not been energized because of inadequate distribution and storage capacity infrastructure. Which means youre going to be increasing your sunk costs the more you shove intermittent generation down americans throats because politicians dont appreciate that energy managers have to manage risk on energy networks and arent going to blanketly add generation that puts systems at risk of failure.

[@josdesouza]

If you wanna hear music , you gotta pay for the band. Investing heavily in environmentally-sustainable, in-country, productive capacity is by far the best long-term way to keep inflation under control.

[@jayden7945]

@@King_Athelstan yeah how could investing in an emerging trillion dollar industry be good for business...

[@gazzman3000]

when it comes to energy - we never were in the era of free-market globalisation

[@caesarhuang7662]

“I’m from the government and I’m here to help” the meaning behind this still stays true, Mr.Wolf.

[@noneofyourbizness]

so, competition between nations/regions based on R&D/tech innovation will take over from: 'who can find the world's most exploitable workforce and environment' ? sounds bloody good to me.

[@DirkusTurkess]

Why not both?

[@havenless3551]

@@DirkusTurkess Unless you're the CEO of a billion dollar corporation, why would you support manual laborers being exploited?

[@arthas640]

It's not just about wages but also about things like infrastructure, taxes, legal security (like respecting trademarks and enforcing legal contracts/agreements fairly), ease of doing business, and politics (to a degree). The turn away from China isnt about rising Chinese wages but rather about legal security and politics since China is famously shameless about stealing tech and ideas, and shameless about protectionism by blocking or discouraging companies from doing business within China, favoring Chinese companies above foreigners, and by heavily supporting exports at below market costs to kill competition.

[@israelgaladima292]

true

[@a9s2w5]

Not only is it a MUST for the US, but for all the West. If we don't invest, if we don't rebuild, if we don't control our own sources of many of these technologies, it would decimate Western economies. We can't be at the whim of foreign countries who's stated goal is to more or less put us in the category of the past. Plus, someone has to invest in clean energy….we need so much more investment than even this.

[@jacksmith-mu3ee]

It will kill the dollar faster .. if u use protectionism policy u lose

[@GiorniVenibato]

Even with 25% tariff, it’s still cheaper to import solar panels from China!😮😢

[@chriscosta9248]

As both an American who resides in the US and a born and raised European I am split about this. I understand both sides. I believe that as an American the country will benefit greatly from the IRA. Manufacturing is one of the -if not the biggest- reasons the US manage to win in WW2. Shipping manufacturing abroad to an ideological and geopolitical adversary is not a good way of preparing for potential conflict. When I say conflict, that could mean trade war, regular war or some kind of cold war. Cheap products are good and useful, but as a country you do not want lower your manufacturing capacity. And cheap products come with the hidden price-tag of lower salaries and less jobs and job security. Now as a European, I understand the frustration as well. Europe also had a lot of factories and manufacturing. However after the US led the globalization transition, most European countries willingly or not adapted by shutting down their factories and transitioning to service based economies. Now the US has shifted it's policy, but European countries cannot do that as fast or with the volume that the US is doing it. Europe is not a single country. And the economies (GDP) of all the countries together is much less than the economy of the US. As it stands, European countries will fall behind even more that they already have. The IRA could trigger a subsidy war within the EU and undermine the single market. Since the EU is more bureaucratic and requires more time to pass something as big, this will make it hard for Europeans to compete. And that could make EU -US relationships worsen. I guess only time will tell what actually happens.

[@WBSummerlin]

I think reducing reliance on China is more focused towards self sustenance and guaranteeing the flow of goods over a nationalistic endeavor of dominance. Good video though.

[@Waitwhat469]

Right. It's not just a point of pride, but a real concern we should have on making sure we have a resilient economy against major disasters

[@jacksmith-mu3ee]

Nope . Its to choke china economic rise . Usa didn't want competitors China knows these dirty tricks . WTO is also angered by usa policies

[@jacksmith-mu3ee]

​@@Waitwhat469i d rather trust china

[@Waitwhat469]

@@jacksmith-mu3ee I mean, it's not just a what if a foreign power decides in their interest to hurt us directly. We also have non-geopolitical disasters to contend with...

[@jacksmith-mu3ee]

@@Waitwhat469 u are the disaster

[@myCSRawag]

Hi FT, I have been watching FT Film on KZbin since very long. I find the discussions very insightful and very comprehensive. I, like many Indians, do not recognize the participants in such Videos. It will really help us all understand the context better if you keep on showing the names and organizations or country of the speakers and participants in such FT Film videos. Thanks Vikram Shah, Ahmedabad, Gujarat, India

[@straffwentworth9551]

A fantastic summary of the Inflation Reduction Act and our strategy to fight global warming. Great reporting, wonderful editing and presentation of the material

[@PepeCoinMania]

To fight a hoax and destroy honest jobs you mean

[@reichjef]

The goal is to continue to be economically dominant. China is currently hitting a middle income gap, and the Western markets are working to avoid economic contamination. Western markets did the same thing when Japan entered the middle income gap at the beginning of the lost decade. It’s just much more substantial now because of the growth of globalization since the 1990s.

[@RaveYoda]

The state has always been an actor in the economy and Xi based a lot of his industrial strategy on prior American principles/actions of WW2 and the Cold War. Ultimately government can and does chose winners but in our case the state had often opened whatever knowledge and technology researched/gained back to the private sector to do with as they pleased. Fundamentally, free markets can't or are unwilling to focus long term and the state can.

[@timothytendick1550]

elections every 2 and 4 years is why the state (usa) is terrible at long term planning

[@Zyzyx442]

Yes you're right, democracies can plan much more long term than authoritarian regimes where the sovereign needs to constantly worry about internal coup d'etat or populist revolution. Democratic directorates and institutions can plan over decades as we saw with the military industrial complex and NATO, the state can do a few things very well, but many things poorly, hopefully the investments will be specific, targeted and audited and not go to waste in anonymous corruption.

[@sputnickers]

The "invisible hand" has always been, and always will be the government. Economists don't recognize, understand or notice the government, so it is therefore invisible.

[@craven5328]

This reminds me of Marinna Mazucatto's book The Entrepreneurial State, where she chronicles how government agencies (DARPA, the NIH) were the first investors / developers of technology or innovations that no private companies were willing to take a risk on in the early stages, but were of course only too happy to leverage (largely for free) once it started to look like things would be viable (the internet and GPS figure prominently in the book).

[@fiftysquiggly]

This is such a well-informed and comprehensive review of the IRA and its potential global impacts. One thing that was always funny to me was how a certain group of politicians lambasted the bill as reckless, "socialist (lol)" spending and yet those same politicians were the quickest to jump at the subsidies it brought to their state and take credit for them. Not to mention how protectionist the bill is.

[@dougbosworth8745]

Ok ,whatever you say, bot!!

[@arthas640]

I'm usually in favor of the free market, a detail many people overlook/dont know about is that one of the main causes of the Great Depression was the Smoot-Hawley Tariff Act which lead to a trade war which helped cause the crash. That said most economic stimulation efforts are protectionist to some level, the EU passes a lot of laws and regulations meant to encourage domestic production over importation like targeted food safety laws and trademarks which discourage foreign produced foods or similar laws for manufacturing, China's whole economy is effectively closed to most foreign imports, and there's been quiet a few issues lately of countries purposefully "dumping" goods and below market prices in other countries to kill competition and ensure their country carries out exports without worrying about competition or imports (for example China recently got accusations of trying to establish a monopoly on garlic exports). With things like NAFTA in place it helps strike a balance between protectionism and a total lack of domestic trade security. Some of these investments are also with non-American companies: for example TSMC is setting up some manufacturing plants in the US, not to mention the fact some of these companies still buy parts and materials from outside the US. Not to mention the fact this reinvestment in the US is just that: reinvesting back in the US after decades of outsourcing and investing outside the US.

[@lahabitaciondelatrapado4621]

Not a single chapter of the law was mentioned.

[@jacksmith-mu3ee]

​@@arthas640found u List of Countries the US has Bombed Since the End c WWII (may be incomplete) Korea and China 1950-53 (Korean War) Guatemala 1954, 1960 Indonesia 1958 Cuba 1959-61 Vietnam 1961-73 Laos 1964-73 Belgian Congo 1964 Dominican Republic 1965--66 Peru 1965 Guatemala 1967-1969 Cambodia 1969-1970 Nicaragua 198OS El Salvador 1980s Lebanon 1982-84 Grenada 1983 Lebanon 1983, J 1984 (Lebanese, Syrian targets) Iran 1987 Panama 1989 Iraq 1991 (First Gulf War); 1991- 2003 (US/UK "NO Fly Zone") Kuwait 1991 Somalia 1992--94; 2007 Bosnia 1994-1995 Iran 1997 Sudan 1998 Afghanistan 1998 Yugoslavia 1999 Afghanistan 2001--ongoing Iraq 2003 (Second War--more recently predator drones) Yemen 2002, 2009 Libya 1986, 2011

[@ryangriffith5551]

So because you hate it, that means after it passed, you should reject the free money?

[@user-sg6ce3tx7s]

The end of globalization is like believing in a unicorn....period

[@davidchase-lopes8413]

Thanks for this! Very instructive and places many of the key Government vs Market actors in front of your audience.

[@wyldhowl2821]

Consider this: Artificial abundance / cheapness of fossil fuels is the basis of those offshored jobs and overstretched supply chains. In terms of energy efficiency, it is absurd to see raw materials shipped across the world to take advantage of poor labourer areas then shipped back as finished products. The only way it seems to make sense economically is that the cost of shipping (i.e. the cost of fuel) has been kept artificially low. In short, it doesn't really make economic sense, and it sure as hell does not make engineering sense. We call this false effficiency "cheap" only because the true costs are deferred and sloughed off by the market as "externalities" which we are told not to think about, but which come back to haunt us later in the form of disasters, illness, and conflicts. Not to mention becoming dependent on those foreign jurisdictions which might exert brutal leverage over us in times of crisis, forcing us to betray our own best interests. If acts like this in the US and similar measures in other nations can restore some actual rationality and actual efficiency to not just manufacturing and supply chains, but push economies to adopt the overall-more-efficient clean energy as their basis, then people should be all for it.

[@Hexanitrobenzene]

"In terms of energy efficiency, it is absurd to see raw materials shipped across the world to take advantage of poor labourer areas then shipped back as finished products." - Very good point. Nate Hagens would also agree.

[@Mosern1977]

International shipping is indeed the magic underpinning the globalization. It is insanely cheap to transfer goods over the ocean, making this possible.

[@Pmooli]

The USA will actually be richer if they reshore their industries. The problem is that the billionaires will have to pay more. There was no reason for globalisation except for the benefit of a few global elite.

[@dnmurphy48]

No, inflation will rise because costs will rise. Companies will just pass on any costs.

[@iggy5347]

Inflation will rise imagine if apple iphone made in china $1200 imagine made in usa i phone will cost $3000 so inflation will rise

[@visheshsarbhai8379]

it was in favor but the American Corp took that profit and instead of investing in theirs business and paying higher wagers to workers they did stock buybacks and kept that profit in tax havens like Ireland its the govt that didnt enforce the rules so u can try but it will fail just like uk after ww1 ,they just blaming someone else for their problems like always

[@idebski]

It will increase yes, but so will purchasing power of middle-income Americans, and inflation will settle once true economic parity is achieved. Overall win for USA, and BIG loss for emerging economies. Only threat is build quality which generally is pretty poor in electronics in the USA compared to China or Korea.

[@iggy5347]

@@idebski in theory yes. But do you want to work in the factory 12 hours and 7 days a week and breaking your back. ?

[@LanceKoppMusic]

No one was wearing a hat in this video, but there was plenty of cappin'

[@Brad4Ellis]

I appreciate this video, because it is easy to understand from the perspective of the layman like myself, it is filled with insights (that are fresh ways of looking at things, at least to me) and it doesn’t seem to have a particularly sharp partisan leaning.

[@cyskye187]

And states wonder why people don't want to have kids to grow up in this fxd up world anymore. It's all about "us not them" instead of finally getting down to work on a peaceful and livable world. Sides are what will tear us all apart.

[@blafonovision4342]

The irony of Europeans complaining about protectionism and subsidies.

[@lewis123417]

We're not breaching the WTO

[@ValMartinIreland]

Putin is laughing at America relying on intermittent weather sources.

[@blafonovision4342]

@@ValMartinIreland Putin is crying over the shale revolution. Try again.

[@1973HST]

@@ValMartinIrelandyou are aware that the US is already energy independent, right? Nothing anybody says or does changes that fact.

[@alexandermallinckrodt2847]

@@lewis123417I think you need to look up EC Hormones or EC Bananas or the multitude of other cases which the EU has been found to have violated national treatment or MFN principles by Panels or the Appellate Body at the WTO. That’s especially true in their SPS provisions. In both those cases btw the EU continues with their WTO-illegal practices.

[@hm4Matlala]

This will change America forever."If done Right"

[@jimsimonetti2929]

permitting reform is another huge piece of legislation that needs to be passed or a lot of this money is going to be eaten up by lawyers and consultants and not construction and factory workers.

[@arthas640]

Yeah some states, especially those on the west coast, are insane. I work construction and know people who work across the US and sometimes we on the west coast face insane permitting problems. For example I worked with a contractor who operated in almost all of the lower 48 states and he said it was easier building in New York City (pop 20,000,000) then in Olympia Washington (population 55,000). They force you to follow all kinds of redundant regulations, have pointlessly bureaucratic applications, and even inspectors admit their job is as much about increasing state revenue through pointless fines as it is about actually regulating things. In the last few years for example the housing crisis has been exasperated by permitting issues making it difficult to build homes or turning houses into duplexes or other multifamily dwellings so people have to get creative and rather then building a house they spend the same amount to build a smaller shed or garage that they then convert to a dwelling semi-illegally. Many builders, rather then turning large yards into dense housing will realize it's not cost effective or sometimes even possible so they focus on improving the property value through wasteful things like adding garages, remodeling the home, and more landscaping so you wind up with big unused chunks of land where you could have another house. Tons of pointless red tape, many cities have their own permitting departments the rely on software from the 80s and 90s and require a lot of wasted time and effort.

[@vitolarussa]

Love how the trailer for Freyr's "clean energy factory" in Georgia shows them demolishing an old growth forest.

[@sirrathersplendid4825]

Same is happening everywhere. Wind farms are the worst culprit.

[@aaroncabatingan5238]

Based

[@silverado7253]

Clean energy is a scam

[@cejannuzi]

Remember what preceded this. The US made 'energy independence' their main driver of the federal government. This meant huge subsidies going into tar sands, oil in shale formations, deep Gulf oil, and fracked gas. The foreign policy became militaristic, destroying oil producers, and when not that, confrontational, blockading Venezuela, Iran, and Russia. That is because if energy costs are too cheap, US fossil fuels can't make money, even with all the subsidies. So the IRA is just the next stage of all this. That means the US will feel it is forced to make sure that the rest of the world is stuck with energy costs that exceed the US's, and the US won't have cheap energy. So it's more expensive energy costs and more wars and trade blockades. It's like only China and Russia can even try to stand up against the US.

[@lexpox329]

I hear about fossil fuel subsides a lot but have never seen a clear picture of how much money goes into them compared to other industries. Seems like the US could not be selling oil to other countries if it was costing us money in reality, would be a short term thing. All the subsides I know of are mostly to ensure energy availability of power generation assets not low prices.

[@kairoocb6533]

We should start blockading the wind and the sun in foreign countries that have too much of these green energy resources. We can’t have other countries producing more wind or solar energy than the US or they could undercut the value of the electricity we’re trying to sell.

[@joefish6546]

The conflation of policies aimed to 1. boost domestic manufacturing and 2. encourage a transition to low-carbon energy generation is a good example of why modern day policy making is so dominated by public perception/PR.

[@israelgaladima292]

true

[@juliancoulden1753]

What a surprise that us corporation’s sold American jobs to China, and now the us has suddenly realised its needs to actually make things. And secure its future and provide security for jobs and the country.

[@Bradleyschaeffer376]

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[@Rhgeyer278]

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[@Seanmirrer]

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[@Jimpard]

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[@autothrust330]

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[@RaniVeluNachar-kx4lu]

I have heard that in 25 years, China will be 600 million smaller in population and people over 60 will be 20% of the population. This is not just China. It's Japan, South Korea, Singapore, the US, the UK, Germany, Italy, Spain, and this will have an impact on demand and how we distribute our assets in the global economy. There could be a scenario, in 25 to 30 years, maybe 40 years, roughly two human generations, at current trend, that the GLOBAL HUMAN POPULATION WILL BE 4.5 TO 5 BILLION. That's not just some fantasy. It's looking more probably than not. That could be a huge image on Climate, but also on many economies and urban centers. Whole regions could start to be just like Bulgaria, with many rural empty villages and towns, and just a few clusters of people living in the regional capitols and the main cities. Just looking at Bulgaria for instance, at 6.7 million now, it's due to be roughly 2.9 million by the year 2100. That's less than 77 years away, or 3.5 generations. Much of the world is well below the 2.1 replacement birth rate, some drastically below it. But again, that might be disruptive on one level if we don't plan for it, and yet good ecologically on a whole climate basis.

[@NicholasBall130]

Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.

[@StocksWolf752]

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[@StacieBMui]

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[@EleanorBaker474]

Could you kindly elaborate on the advisor's background and qualifications?

[@StacieBMui]

The advisor that guides me is Sonya lee Mitchell, most likely the internet is where to find her basic info, just search her name, She's established.

[@PedroLopez-rw7qw]

The world is sure changing and the IRA would imply a higher degree of opposition between western values and principles and those of non-democratic regimes. Governments in the developing world ought to be taking note and acting accordingly. Excellent documentary, thanks!

[@richardwich9330]

Yeah-the usa...

[@GarretKrampe]

The IRA ? Aren't they still burning their lips on the exhaust pipes of London Buses ?

[@r.s.4174]

The USA is a democracy? Just on paper.

[@Lo-to7zh]

Democracy does not exist , some countries are just very dictatorial and authoritarian

[@tiglishnobody8750]

Why me as Irish using IRA remind me of something else?

[@StavrosSofokleous]

A similar initiative is imperative for nuclear power with a state-private consortium offering a handful of models of reactors

[@EduardoPedreno]

🎯 Key Takeaways for quick navigation: 00:01 🌍 *Introduction to the Inflation Reduction Act* - The Inflation Reduction Act is a significant piece of legislation designed to reshape the US economy, address climate change, and secure supply chains. 01:03 💡 *Key Provisions of the Inflation Reduction Act* - The IRA includes $370 billion in tax credits, loans, and grants to incentivize domestic manufacturing. - It focuses on decarbonizing the economy, reshoring supply chains, and reducing dependence on China. - The Chips and Science Act complements it, encouraging semiconductor research and production. 02:55 🌞 *Impact on Clean Energy and Manufacturing* - The IRA aims to reduce emissions by 40% by 2032 with tax credits. - It stimulates more than $220 billion in clean manufacturing and clean technologies. - The legislation transforms regions like Georgia into advanced-energy manufacturing hubs. 06:51 ⚡ *Importance of Domestic Manufacturing* - The IRA encourages the production of strategic commodities like solar technology within the US. - It creates jobs, boosts local economies, and reduces dependence on foreign sources. - States like Georgia benefit from incentives and subsidies to attract manufacturers. 07:56 🌐 *Global Trade Implications* - Critics view the IRA as protectionist, similar to Trump's policies, and it may lead to trade tensions. - Europe reacts with skepticism, fearing subsidy wars and damage to international relations. - The legislation challenges the notion of market-driven globalization. 10:46 🤝 *International Relations and Climate Agreements* - The IRA's focus on domestic production affects international climate agreements. - Countries seek critical minerals agreements and free trade deals with the US. - It shifts the dynamics of global cooperation and trade relationships. 13:55 🌎 *Climate Change and Industrial Strategy* - The IRA marks a shift from market-driven policies to government-led industrial strategies. - It challenges the traditional approach to economic policy. - European companies increasingly invest in the US due to its fiscal incentives. 17:12 ⚖️ *Balancing Climate Goals and Economic Realities* - The US faces a dilemma between cutting emissions and re-industrialization. - China remains a critical supplier of essential components for clean technologies. - The choice between climate targets and domestic production may create challenges. 20:12 🔄 *Distorted Markets and Economic Security* - Government intervention in markets can lead to distortions and long-term economic security issues. - Cheapest is not always best, as reliance on cheap fossil fuels can have consequences. - A balance between government guidance and private investments is needed for decarbonization. 21:41 🔗 *The IRA in the Context of Global Supply Chains* - The IRA comes after a period of strained global supply chains, emphasizing the need for change. - Competition can drive innovation and cost reduction in the clean energy sector. 22:10 🌐 *Global South and Impact of IRA* - The IRA's impact on the Global South raises concerns about the fairness of climate policies. - Developing countries may struggle with the financial burden of transitioning to cleaner technologies. - The need for a balanced approach to development and environmental goals is highlighted. 24:09 🇺🇸 *Political Implications of IRA* - The IRA has unexpected bipartisan support, with 80% of the investment going to Republican districts. - Potential political shifts, such as a re-election of Donald Trump in 2024, could impact the IRA's future. - The tax credits embedded in the legislation for 10 years may pose challenges for future administrations. 25:36 🏭 *Role of Government in Post-Neoliberal Politics* - The IRA represents a departure from traditional neoliberal economics, acknowledging the government's role in addressing global warming. - Challenges like permitting, supply chains, and interest rates exist, but the government is investing in environmental solutions. - It marks a shift towards a more active government role in ensuring public goods, particularly in combating climate change. 26:58 🌍 *Changing World Order and Free Market Ideals* - The IRA signifies a departure from traditional American advocacy for free markets and free trade. - The US's shift towards a different economic policy challenges the existing world order. - The era of free-market globalization is undergoing significant changes, driven by the IRA and similar policies. Made with HARPA AI

[@brianslender4220]

awesome !

[@0fficerpimp]

Thanks

[@gregoryabbot420]

I thought THIS was what the rich people were supposed to be doing with those budget-busting tax cuts they'd been getting for decades? Looks like they actually WERE just hiding most of it away. Who would've thought they'd be so short-sighted and greedy?

[@johnclapshoe8059]

In a world where governments have interfered, funded, tweeked, and legislated against and for certain industries for politial gain by lobbyists and politicians, the more i understand market forces to the biggest, fattest fallacy ever. We're in a situation where governments are run by corporations for corporations.

[@kevindruce8915]

Weird, how the factories have no solar panels on their roofs.

[@alan2102X]

Oh, they will, they will. It is the only economical way to go.

[@jpii8468]

​@@alan2102XIt depends on where said factory is located. Solar works well in Southern latitudes, but is a net negative in Northern latitudes (you can rarely recoup the costs up North).

[@xoigel8106]

​@@alan2102Xlike all other engineering and economic questions that are answered in one sentence...

[@wyldhowl2821]

If a solar panel factory cannot cover their own roof in solar panels they make themselves, then you have to wonder about their projects.

[@alan2102X]

@@jpii8468 Not true. Search: Seba superpower

[@slapakk]

I love how they named it Inflation Reduction Act, to pass it through the government.

[@nap820]

I hope it will also be like this in Europe, that we ourselves produce the things we use, because it is miserable there is nothing to work in Europe

[@TurdFergusen]

American needs to be self sustaining first and forever.

[@MaximGhost]

So why did Biden beg Saudi Arabia and Venezuela for oil?

[@franciscovarela7127]

Yeah, like North Korea.

[@user-td2vt5lz1j]

Yeah so you do realize that building solar panels creates these gases. what do we do with windmills after their 5 year lifespan? throw them away? in a landfill? yeah ol

[@quasii7]

The US should work with the EU

[@shewagdhanush1391]

Get ready to pay more for stuffs.

[@priyadarshansengottaiyan2091]

Great job @FinancialTimes well documented I appreciate it.

[@jenniferpulskamp5592]

This film is so well done. It’s really a must see, no matter what your politics are.

[@MrDucenukEM]

no

[@RedEyeC]

Taiwan TSMC (in Taiwan) makes 90+% of ALL semiconductors used in devices from cell phones to automobiles. Semiconductor manufacturing in the US (now) is very limited.

[@chelseafan4eva]

This is normal, every time in global history when the dominant superpower gets challenged economically, they tend to pull back on free trade. It happened with Spain, Britain and now it's happening with America.

[@hamzamahmood9565]

Lol, what free trade? Nothing like globalization has existed before 1945. Countries were either self-sufficient, or outright colonies

[@yw9113]

This is not true. Great Britain didn't introduce protectionist tariffs until the 1930s (as did most countries during the Great Depression) but it was no longer the world's foremost economic power by then.

[@mikexhotmail]

​@@yw9113You try to imply that the US is also no longer #1?

[@yw9113]

@mikexhotmail no I'm saying that the op's claim is historically inaccurate

[@mikexhotmail]

😁😁😁 @@yw9113

[@pratikkatkar7885]

Wow america is back like 70 and major industrial power ,midwest, rust belt begin new make over is incredible

[@DavidSaundersPosts]

Hilarious that the US is being criticized by Europeans for having a manufacturing industrial policy. Germany in particular wrote the book on industrial policy. Does the EU need to unify to keep its members from undermining each other? Of course! US's IRA just gives them a shove.

[@idcashflow]

its normal , because they buy the gas for their industry right now from the us, not from russia that so cheap

[@lemonblue2387]

I'm all for making what we buy and use here - let foreign made products be luxuries - like it used to be. But I thought there was something about the renewables that used elements only obtained in Africa and China via slave labor and unreliable supply?

[@w.e.b_b]

Not a single mention of Nuclear!

[@ReijiMoritsugu]

23:15 ah the “give me your natural resources and we will help you fix the problem we cause” good argument

[@robdeep19]

This was a really informative piece. Thank you FT! Also, loved the montage of past US Presidents at the end, subtle 😂

[@timogul]

I'm really tired of the argument "you guys had 100 years head start, so we get to burn coal as long as we want to catch up." *Nobody got any head start.* Everyone had the SAME starting line, and it was tens of thousands of years ago. If any country was less powerful than the US 100 years ago, then that's because they failed at a much earlier date to keep up. It's like if you have a sports game, and the game starts, and one team is really racking up the score, getting dozens of points ahead of their opponents, while the other team just sits there eating the grass. Then, after half time, the other team actually starts to play, and is doing pretty decently, and starts gaining points, but declares that the refs should allow them to cheat so that they can catch their score up to the other team's. No, that's not how it works. It was their fault that they didn't bother to play in the first half, nobody owes them anything in return for that.

[@lexpox329]

It will all be a moot point once renewables are actually cheaper than dino juice, the market will drive coal abandonment without anyone having to force anyone else.

[@timogul]

@@lexpox329 Yes, but obviously we can't just wait around for that to happen. For one thing, by the time dino juice got super expensive, like $6+ per gallon in the US, if we didn't already have the green infrastructure to support things, then people would just have to pay those crazy prices for a decade or more as the industry caught up. It's impossible to make a green shift over night. For the other, if we made no investments in green projects, then green vehicles would still cost the equivalent of tens of dollars per gallon, and it would take forever for oil to get that expensive. We need to invest in green tech to improve it and drive costs down, so that they can meet the oil tech in the middle. So obviously there will be a point where switching to green energy will become inevitable, but we want that transition point to be as smooth as possible, so that everyone barely even notices when the line flips.

[@noneofyourbusiness5326]

Investing in intermittent power without storage is a Quixotic quest. Germany presently has 4 times the nameplate of Intermittent energy production, but in only account for half of all the actual electricity production. If it not for the ramping up of natural gas and coal generation of electricity in Germany (plus last year's very mild winter) the German economy would have completely collapsed. Solar and wind generally produce electricity when it is least needed (during the day and in the warm seasons) and collapses the it is most needed (at night and in the winter).

[@Stargate2077]

Then they should build and install grid scale batteries.

[@mshepard2264]

I use more power in the summer than the winter but all this does depend on location. Grid scale flow batteries could work.

[@andrewf7754]

In the 90s I conducted several technology strategy projects for EU solar start-ups. The US was the inventor of photovoltaic panels for it space programs. But by the end of the 80s investment in PV was just a drip feed and they had ditched it all under the oil lobby. Europe then 'dabbled' in PV, but it took the Chinese to pick-up the baton and run. As a consequence they reduced the price of solar panels by around 70% from 2010 to 2020. I say: hats off to them! It took a long time for the US to wake up to the long term damage they created with their short term strategies. But if the US wants to do something big, it still can. I only hope the democrat administration is maintained, otherwise you can forget this reversal.

[@hi4806]

😂The United States is an economic model based on printing dollars, and most large-scale industries in the United States are too expensive to maintain.

[@silliestsususagest3276]

@@hi4806 I mean this describes a lot of the Chinese Economy.

[@silverado7253]

A democrat administration so the population can be replaced by economic migrants ? The last time a democratic administration which this man was part of was in office , the jobs weren’t coming back until Trump sparked the debate. Biden just plagiarized like he always has.

[@bigpapa2689]

Why not do geothermal? Now we have to figure out what to do with the univesal waste (aka batteries)

[@idcashflow]

batteries is mobile, u dont need to build new infrastructure

[@fuehnix]

iirc, it's only cost effective in certain geographic areas. Obviously we're going to do geothermal where we can. Same applies to wind turbines.

[@Darhan62]

Globalization doesn't stop. It's been going on since the first trading vessels and caravans set forth across the ancient world. But globalization changes. Like a living organism, human civilization wants to survive, and it will do what it needs to do for that purpose. Sometimes that means things change.

[@samuraijack1371]

HR is one of the most useless depts of any company.

[@supremepartydude]

You did not mention the war between centralized power producers and independent power producers. Duke energy is one of the largest power companies does not want me - the consumer - becoming my own power producer for many reasons. A Bill of Rights for the consumer who wants to become their own power producer is desperately needed. Don't make solar panels cheap for the consumers while keeping in place their preferred status.

[@miguel5785]

An interesting question, but this video is about the production of solar panels, wind turbines, etc. not about how they are used and integrated into the system. Your solar panels may as well come from China.

[@Sovereign_Citizen_LEO]

What preferred Status? Anyone (in America anyway) can be their own power producer. What good would a so-called "Bill of Rights" do? I don't understand.

[@skillfulpeople]

The Financial Times staff has put together a great do documentary on the Inflation Reduction Act, which shows the talent of its people. The act wisely focuses on revitalizing the energy transition (under the motto "America first"), thus addressing the war against climate change, unemployment, and a economic model that leaves globalozation behind. It is really great to live in the US during these times because it is a "fundamental shift" in the way americans were running the country. Ť

[@Arcticwhir]

Lets be real if were trying to solve climate change in the US, we gotta be building more train and public transportation, hell even bike infrastructure . This EV switch really isnt that impactful.

[@lexpox329]

Self driving vehicles will replace most public transport in the world in the next 30 years. Public transport projects beside high-speed rail between specific cites are a waste of money now. If this was 20 years ago you might have been right. I do agree about bike infrastructure, E-bikes have changed the calculus for me, if I could commute to work on an e-bike I would. But the roads are even riskier for bikes than cars and my workplace has no secure area for storing a bike that is out of the elements.

[@johnpatrick1588]

Who doesn't love public money for their private businesses and their personal bank accounts? Who loves no accountability when they go bust after sucking up that free money?

[@kaymish6178]

I love it. I had investments with a couple of companies that produced nothing didn't provide any services, but the c suite all had contacts in the government and were skilled at making grant applications. About 50% of the subsidy money was paid out to us stock holders and the rest was split between performative work and getting more grants and subsidies.

[@digitaldemocracyai-rob]

They still have to pony up their own money

[@LorenzoGiovenali]

Imagine bad investments were made... "They understand that BECAUSE of these tax credits, they can make profits in the US", yeah, the tax payers are funding their "profits"

[@quantumlife2250]

Ultimately, addressing these challenges involves ongoing efforts from both the government and the citizens to foster trust, understanding, and collaboration. Open and transparent communication can be a key factor in bridging gaps and working towards a more cohesive and responsive society.

[@riotintheair]

I expect long term the US and EU will come to an agreement, but the EU's fundamental complaint seems to be about a political failing in European institution building. I appreciate how hard it is politically to solve the fiscal authority problem in the EU, but it's frankly kind of irritating hearing the EU complain because the US has solved the basic function of a state to enact fiscal policy while the EU has not solved it. It's kind of at the heart of why states are powerful, and why the EU isn't a state yet. The EU can mostly get by when dealing with states as a not quite state because the EU is economically masssive compared to most states, but when they're re dealing with the US or China the EU's incomplete nature holds them back, and the US and China (and India) will never act as "not real states" just to level the playing field for the EU. The EU has to solve this problem or they'll never be able to treat as equals with the US or China, or any other state that gets into the same weight class as the EU, US, or China.

[@kevinconway6022]

Great analysis! Seems the EU is learning the same lessons America learned 200 years ago from the Articles of Confederation.

[@grimaffiliations3671]

MMT economists pointed this out before they formed the union. Without your own currency, you do not have any real control of your fiscal policy

[@Republikaner1944]

I pray to God that the EU never becomes a state.

[@lennartvandenberg6534]

That is why they are pushing so hard for a federal state. We must never let them succeed.

[@RaveYoda]

@@lennartvandenberg6534 I'd rather have an EU state. Functionally, we need another peer in our own court as Russia and China tag team against democracies.

[@rosarioc.debaca1935]

Product quality and safety matter. I am frugal enough to pay more for appliances that don't break down.

[@honkrightnow2327]

Unfortunately, going head to head with Samsung TDI is an absolutely COLOSSAL undertaking. The global battery industry is pretty locked up rn.

[@JigilJigil]

Basically US wants to decouple form China while Europeans want to keep appeasing China as they did with Russia, and the US approach is putting them in an uncomfortable situaiton.

[@silverXnoise]

I haven’t looked, but I’m faithful that this comment section is full of productive, cogent discussions between sober and informed academics and enthusiasts who aren’t driven by manipulative agendas and tragic assumptions.

[@hagalathekido]

if a green race or subsidy war were to happen we just might duck under the 1.5c goal. As a European i see this as an absolute win