Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
The Real Cost of Government Subsidies for Chip Manufacturing
In this episode of The Fiscal Policy Podcast with Fexingo, Lucas and Luna examine the economics behind government subsidies for semiconductor manufacturing, using the CHIPS Act as a central case. They discuss the $52 billion in direct funding, the tax credit worth 25% on capital expenditures, and the estimated cost per job created. Lucas explains the rationale for industrial policy in critical supply chains, while Luna questions whether the subsidies are effectively targeting domestic production or merely shifting profits. The conversation also covers how these subsidies interact with…
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