One of the recurring themes that no one seems to learn in Washington is that the best way to destroy an industry is to give the government subsidies.

That lesson has become clear in recent days as Inter have admitted they are in trouble. Quarterly loss of $16.6 billion. This exceeds the entire annual budget of some states.

hang on. Isn’t this the same as Intel, which is set to be the largest corporate benefit recipient of federal subsidies? chips method — Is the Biden bill aimed at ensuring microchips are manufactured in the U.S. rather than China? Inter gets soup line first $8.5 billion in grants and $11 billion in supplemental financing. Although the checks have not yet been deposited, they are among the largest benefit checks ever written to a U.S. company.

President Joe Biden probably had a good time. Photo shoot with Intel officials Should have done that when the bill was passed. rethinking. Intel is on the verge of bankruptcy. they just replaced by a rival Semiconductor manufacturer Nvidia was selected by the Dow Jones Composite Stock Index. Although Nvidia received no stash from the CHIPS Act, the stock price soared More than 5 times. The company has rapidly increased hiring and generated hundreds of billions of dollars in profits for U.S. investors, including in pension and 401k plans.

Let’s talk about politicians betting on the wrong horse.

The situation gets even worse. Semafor Technology reports that instead of canceling the nearly $20 billion aid package, Biden officials and Sen. Mark Warner of Virginia, one of the lead sponsors of the CHIPS Act,discussed Does the company need further support? “more?

Nevertheless this bloomberg Intel reportedly failed to provide federal authorities with a viable plan to turn around its financial woes. Why would you do that when you have the umbilical cord in the federal treasury?

Ironically, Intel was making more than $20 billion in profits before the CHIPS Act was passed. It has lost nearly $20 billion so far this year.

What’s next? Will the federal government take over Intel, like what happened with the automakers and banks that went bankrupt in 2008?

There’s an important lesson here. Many Democrats and Republicans believe that the United States should adopt a Japanese-style “national industrial policy,” with hundreds of billions of tax dollars earmarked for fostering “strategically important industries” such as manufacturing, high-tech products, and “clean energy.” I’m obsessed with the idea of ​​turning around. ”

Politicians think they can pick winners and losers better than private investors who allocate money in multitrillion-dollar, highly efficient capital markets. Democratic Massachusetts Sen. Elizabeth Warren has effectively declared war on the booming $5 trillion private equity industry. She calls them “vampires.” Because sometimes they make bad bets.

But maybe it’s Uncle Sam who’s sucking the blood out of viable businesses. Look no further than Biden. EV handoutThis is simply a response to massive consumer rejection of an industry that was thriving before Uncle Sam began pumping tens of billions of dollars into automakers and ramping up car production in the U.S. auto industry. . Over the past four years, the federal government has authorized more than $300 billion in funding. green energy subsidy It also includes subsidies for wind and solar power, but thanks to low-cost natural gas, the amount of electricity generated has remained largely unchanged.

If we want American industry to be number one, the government should stop giving them money, and CEOs should stop taking money.

Stephen Moore is a senior research fellow at the Heritage Foundation and co-founder of Unleash Prosperity. His most recent book is “The Trump Economic Miracle,” co-authored with Arthur Laffer.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

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