Biden plans to use cold-war era law in attempt to lower US prices

[CharlieH]

 

Defense Production Act of 1950, passed to streamline production during Korean war, was last used during Covid pandemic.

 

The White House has announced it plans to use a cold-war era law to ease supply chain issues that the administration argues are contributing to higher inflation – a key electoral challenge to Joe Biden’s re-election chances next year as polling consistently suggests voters are not buying his Bidenomics pitch.

In a statement, the White House said Biden will use the Defense Production Act to improve the domestic manufacturing of medicines deemed crucial for national security and will convene the first meeting of the president’s supply chain resilience council to announce other measures tied to the production and shipment of goods.

“We’re determined to keep working to bring down prices for American consumers and ensure the resilience of our supply chains for the future,” said Lael Brainard, director of the White House national economic council and a co-chair of the new supply chain council, in a separate statement.

The Defense Production Act of 1950, which was passed to streamline production during the Korean war, was last used in early 2021 during the coronavirus pandemic to accelerate and expand the availability of ventilators and personal protective equipment.

The supply chain council is set to address issues ranging from improved data sharing between government agencies, supplying renewable energy resources and freight logistics.

Jake Sullivan, the White House national security adviser, will be co-chair of the council, which includes the heads of cabinet departments, the administration’s council of economic advisers, the US director of national intelligence, the Office of Management and Budget, and other agencies.

 

FULL STORY

 

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8 minutes ago, CharlieH said:

 

 

Defense Production Act of 1950, passed to streamline production during Korean war, was last used during Covid pandemic.

 

The White House has announced it plans to use a cold-war era law to ease supply chain issues that the administration argues are contributing to higher inflation – a key electoral challenge to Joe Biden’s re-election chances next year as polling consistently suggests voters are not buying his Bidenomics pitch.

In a statement, the White House said Biden will use the Defense Production Act to improve the domestic manufacturing of medicines deemed crucial for national security and will convene the first meeting of the president’s supply chain resilience council to announce other measures tied to the production and shipment of goods.

“We’re determined to keep working to bring down prices for American consumers and ensure the resilience of our supply chains for the future,” said Lael Brainard, director of the White House national economic council and a co-chair of the new supply chain council, in a separate statement.

The Defense Production Act of 1950, which was passed to streamline production during the Korean war, was last used in early 2021 during the coronavirus pandemic to accelerate and expand the availability of ventilators and personal protective equipment.

The supply chain council is set to address issues ranging from improved data sharing between government agencies, supplying renewable energy resources and freight logistics.

Jake Sullivan, the White House national security adviser, will be co-chair of the council, which includes the heads of cabinet departments, the administration’s council of economic advisers, the US director of national intelligence, the Office of Management and Budget, and other agencies.

 

FULL STORY

 

I'm not sure how addressing the supply chain issue has much if any relevance to the current situation. It was clearly relevant back when inflation was surging. But that surge is largely over. The pandemic created an increased demand for goods (as opposed to  services) that was exacerbated by a depleted work force necessary to create those goods. Bottlenecks at ports made the situation worse. So this looks more like a preparing a preventative effort in case such a situation arises again.

[JonnyF]

Joe putting his finger in the dyke.

 

I don't see this having any meaningful effect in terms of lowering prices. Maybe he should do the right thing for once and step aside. It's time.

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1 hour ago, JonnyF said:

Joe putting his finger in the dyke.

 

I don't see this having any meaningful effect in terms of lowering prices. Maybe he should do the right thing for once and step aside. It's time.

Anybody with an inkling of understanding of economics knows that the only way you can create widescale deflation is to create a severe recession or depression. 

And while the measures being discussed can't do much to address the current situation, they're certainly worth exploring should a similar crisis occur in the future.

[Danderman123]

They always talk about doing this, but never do.

 

The idea is to scare manufacturers into lowering prices, but it never works.

 

The laws of supply and demand are inexorable. 

[thaibeachlovers]

Has there ever been a situation in which government intervention in the economy has worked to benefit the average citizens? I know of none.

[heybruce]

On 11/28/2023 at 2:59 PM, thaibeachlovers said:

Has there ever been a situation in which government intervention in the economy has worked to benefit the average citizens? I know of none.

Transcontinental railroad, Tennessee Valley Authority, interstate highway system.....

 

Of course these are just in the US.