A new story from All Things Considered


To start things off today. A macro micro thing. Big picture and then granular look inside the gears of this economy. The case study at hand is the supply chain on which we have spent, as you know, no small amount of time the past couple of months, shortages and price spikes, logistical bottlenecks. Well to that end, the Biden administration says it has plan the supply chain disruptions Task force Will the thinking goes increased domestic production of critical inventory, like semiconductors and batteries that was announced today. It is also by the way. An admission that we are not going to be able to make everything we need ourselves. Marketplaces. Justin Ho is on the macro desk today. What the Biden administrations really doing here is trying to reduce the economy's dependence on China. They're talking about trying to reduce dependence on other countries for rare Earth That's mainly China. Katie Rust is an economics professor at U. C. Davis. They're talking about trying to safeguard and encourage domestic sources of key pharmaceutical ingredients. Here. We import a lot of those from China. So the idea instead is to rely more on American allies as trading partners, says Rachel Brewster at Duke Law School. When we're discussing semiconductors are major allies will be South Korea, Japan, Taiwan. When we move on to pharmaceuticals. It's going to be maced much more in Europe. But there's a problem with that, says Emily Blanchard at Dartmouth. We have been antagonizing many of these same trading partners for a number of years. The Trump Administration slap tariffs on trade with a lot of these countries, and even now, tariffs on European medals remain in place. I think here we are sensing a very deliberate and intentional policy shift by the Biden administration to say Let's deal with some of these national security concerns. With our neighbors, not despite our neighbors, Blanchard says. We don't have the capacity to manufacture. Everything we need in the U. S. Would be a fool's errand, she says to try to go it alone. I'm Justin. How for marketplace? Micro Part of this supply story today comes.

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