Pirate's Cove

Was this the law that was supposed to be about inflation reduction, but, was all about other things?

Biden’s Climate Law Is Reshaping Private Investment in the United States

Private investment in clean energy projects such as solar panels, hydrogen power and electric vehicles surged after President Joe Biden signed an expansive climate bill into law last year, a development that shows how tax incentives and federal subsidies have helped reshape some consumer and corporate spending in the United States.

If these things are so great than why does said private investment only skyrocket when government is giving lots and lots of money, loans, and tax breaks? Oh, and forced compliance

New data being released Wednesday suggest the climate law and other parts of Biden’s economic agenda have helped speed the development of automotive supply chains in the American Southwest, buttressing traditional auto manufacturing centers in the industrial Midwest and the Southeast. The 2022 law, which passed with only Democratic support, aided factory investment in conservative bastions such as Tennessee and the swing states of Michigan and Nevada. The law also helped underwrite a spending spree on electric cars and home solar panels in California, Arizona and Florida.

Well, there “Inflation Reduction Act” may have spurred a bit more production for autos in those areas, but, really, most goes back to COVID. Asian automakers predicted the fallout and started moving way more production to North America, realizing it would be difficult getting all the necessary products shipped from one side of the Pacific Ocean to the other. You’ll notice that Hondas and Toyotas usually are made about 60% in North America now when that number used to be a lot less. You will also notice that some things are missing: fog lights and the garage door buttons are going away, except for the top, top trims. XM is slowly being removed, due to it needing a full chip, and it being cheaper to use it with Apple Carplay and Android Auto, which everyone hooks up anyhow.

Would people be buying all those EVs and solar panels without all the government cash? No.

The data show that in the year since the climate law passed, spending on clean-energy technologies accounted for 4% of the nation’s total investment in structures, equipment and durable consumer goods — more than double the share from four years ago.

Yeah, if you’re going to force this on the citizens and economies and provide all that taxpayer cash to do it.

The law has failed to supercharge a key industry in the transition from fossil fuels that Biden is trying to accelerate: wind power. Domestic investment in wind production declined over the past year, despite the climate law’s hefty incentives for producers. And the law has not changed the trajectory of consumer spending on some energy-saving technologies like highly efficient heat pumps.

The return on investment is low, and dealing with all the lawsuits is a pain in the rear.

Biden administration officials have tried to quantify the effects of that law, along with bipartisan legislation on infrastructure and semiconductors signed by the president earlier in his term, by tallying up corporate announcements of new spending linked to the legislation. A White House website estimates that companies have so far announced $511 billion in commitments for new spending linked to those laws, including $240 billion for electric vehicles and clean energy technology.

Commitments are meaningless without action, and, if that money dries up, so will the commitments.

The bulk of that spending was focused on the electric-vehicle supply chain, including in the new Southwest cluster of activity across California, Nevada and Arizona. The Inflation Reduction Act includes multiple tax breaks for such investment, with domestic-content requirements meant to encourage production of critical minerals, batteries and automotive assembly in the United States.

Except, most citizens are not calling for them and are not interested in them. Plus, you know that enviroweenie groups will sue to stop any mining in the US.

Some consumer markets have yet to be swayed by the promise of tax breaks for new energy technologies. Americans have not increased their spending on heat pumps, even though the law covers up to $2,000 toward the purchase of a new one. And over the past year, the states with the highest spending as a share of their economy on heat pumps are all concentrated in the Southeast — where, Houser said, consumers are more likely to already own such pumps, and to be in need of a new one.

If heat pumps are so awesome then why are they not being used in federal buildings, starting with the White House? Did Joe put them in his private homes? No? Huh. How about the NY Times building, since they are so passionate about this issue and wrote the article. What’s that? Heat pumps would be very inconvenient for their big building? Seriously, the government is paying corporations to work inefficiently, and investors cash in on that government money. How many of these companies will be out of business within a year or two, just like with Obama’s Stimulus? Most of this from the IRA doesn’t help the middle and working classes, just those making over $150K a year and more.