Supply chains endanger #American security. Here’s what #Biden is doing.
In late February, as most people were focusing on the war in Ukraine, the White House published over 1,300 pages of reports from a year-long and unprecedented investigation into the economic vulnerabilities caused by global supply chains.
These reports received almost no press attention. Yet they shed light on one of the crucial side effects of the war in Ukraine. Decoupling the economies of the United States and its allies from the economies of authoritarian nations may cause massive disruption.
Shortly after coming into office, the Biden-Harris administration issued an executive order on “America’s Supply Chains.” Seven federal agencies were directed to undertake comprehensive studies of the national and international economic organization of supply chains for strategic minerals, pharmaceuticals, semiconductors and batteries within 100 days. The administration also told the government departments to report back within a year about how those industries related to broader “industrial bases” for defense, green energy, public health, information technology, transportation and food.
The reports call for green industrial policy
The U.S. government reports argue that these critical dependencies could be reduced by an ambitious green industrial policy. By 2030, the U.S. agencies are targeting goals that 50 percent of vehicles sold in the United States will be electric, 30 gigawatts of offshore wind will be built in the United States (that’s about four times the annual energy use of New York City), battery storage costs will be reduced by 90 percent, production costs for green hydrogen (made from water and electricity) will be lower than fossil fuel-derived hydrogen, and 90 percent of the key mineral iridium will be recycled. The agencies recommend strengthening the federal government’s “Buy American” program, subsidizing green industries through the Defense Production Act and building stockpiles of clean energy like the United States has for petroleum, along with other measures.