The United States accounts for almost 50% of military spending for the entire planet.
When the aliens attack
again, the rest of the planet can thank us for at least being as prepared as was humanly possible
Trim it and start using some of it on renewable energy that would make the US energy independent. Huge trade balance savings and 100000s of substainable self paying US jobs. Then move on from there with other sectors.
We are doing it in Denmark. I am sure you can do it in the US as well with even bigger oppotunities.
Word.
I got into the semiconductor industry because I was initially working on developing improved efficiency solar cells for NASA. And later on my grad research was based on developing compounds that could be added/dissolved in water which would then use sunlight to split water ino hydrogen gas and oxygen. (standard "harvesting the sun" themes here) Those applied science experiences were my gateway to a career at TI in semiconductor development.
There are big ways in which the USA could subsidize domestic semiconductor manufacturing. And I'm not talking about buying companies outright, but it all starts with education and a labor base.
Case in point, my own job. It was outsourced to Taiwan, TSMC to be exact. (TI shut down internal CMOS development in 2007, solely relying on the foundries for post-45nm) And the reasons were pretty obvious, we engineers cost TI a pretty penny. My salary was 6 figures, as was everyone I worked with. Why? Did I need 6 figures in salary to do my job? No. I could have been paid 50% of my salary and still made a decent living.
But why was my salary so high? Lack of competition. TI had very few options when it came to hiring someone in the US who could do what I did, and I made them pay dearly for it. To dearly, so they shut it down and outsourced the work the people in Asia who were willing to be paid less.
The reason there was such a limited pool to hire from is because the barrier to entry is ridiculously high. To be able to do my job I had to attend 10yrs of higher education at an upfront expense of nearly $150k. (and that was some time ago, surely that cost has doubled or tripled by now )
How many new college students want to take on such an expense, and such a timeline before seeing a paycheck at the end of the journey? Not many, which was to my personal benefit but not to the benefit of my employer.
So one thing the government could do if it wanted to promote domestic semiconductor manufacturing is to lower that barrier to entry to increase the labor supply. It is the last thing the current labor supply wants to have happen though, no engineer wants competition, no engineer wants their salary to be cut in half.
But the fact is you can live in this country on $60k-$70k per year, you do not
need $120k-$140k per year. And the truth is no one can really afford $120k-$140k per year because it ultimately strangles the domestic market and drives the jobs off-shore.
But that all just entails trading off where dollars go as they get spent. We are still spending the same dollars. Pay your engineers 50% less and now they are spending 50% less, your starbucks jobs go away, restaurant jobs go away, tourism dollars go away, as all that excess disposable income is gone.
So simply reducing wages within any given business sector is not the answer at a macro-economic level.
You must get people working on things that improve productivity, improve the creation of wealth. Investments into developing a domestic alternative energy industry does exactly that. In the 1930's the US government put a lot of people to work building dams to generate hydroelectricity.
That cheap electricity fueled a lot of jobs, and the electricity itself fueled a lot of industries. Wasn't good for the fish, and we now recognize this, but the benefits we gained from that experiment are real and repeatable.