China is America’s economic rival. The way capitalists deal with rivals is to compete. President Joe Biden vows to compete with this rival on the rival’s terms. He calls it “extreme competition.”
China has built a massive semiconductor industry with massive government spending. It is about to send another $200 billion to its semiconductor sector through 2025.
The U.S. Senate, in a fit of bipartisanship, just approved spending up to about $250 billion for science research, subsidizing computer chip makers here and expanding the National Science Foundation. Europe is also spending big.
Why is this so important? Semiconductors are the little brains that now run appliances, airplanes, mobile phones and cars. You can’t have a modern economy without them.
And the reason for building up this domestic…