Not sure if people realize the significance of Nancy Pelosi this past week?
For context, House Speaker Nancy Pelosi went to Taiwan this past week. Prior to going China was making some really aggressive remarks about "playing with fire", etc. China essentially said she is not allowed to go. She went anyways, maybe as a show of power by the U.S. Since then China is conducting military drills in the waters of the Taiwan strait. Even sending missles over Taiwan.
The issue for the U.S. is we get most of our computer chips from Taiwan. We use the chips for our missles so if China invades Taiwan the U.S. HAS to send soldiers since it is a matter of national security.
To counter this the U.S. is in the process of passing the Chips Act to fund $52b into making computer chips in the U.S. it will takes years to start production though. Some interviews I've heard say 2024.
Why is this significant to people here? These companies spent 20+ years sending all our jobs, and our economy essentially, to other countries. Globalization.
If we go to war with China and they stop sending things they make, the significance is mind boggling. Look at the inflation with clogs in our supply chain. Massive shipping boats sitting outside docks in CA. Imagine if instead a slow supply chain we just do not have one.
When you combine this with Baby Boomers retiring, and dropping birth rates resultant of less jobs in America, it's going to get absurdly expensive to bring the manufacturing back to the U.S.
The chips act alone will likely create hundreds of thousands of jobs. Imagine if we have to bring back making phones, furniture, car parts, etc.
The demand for labor will sky rocket.