Opinion by Brian Deese for CNN Business Perspectives
Updated 10:57 AM ET, Fri January 28, 2022
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Brian Deese serves as the director of the White House National Economic Council, advising President Biden on domestic and international economic policy and coordinating the economic agenda of the Biden‐Harris administration. The opinions expressed in this commentary are his own.
The Covid-19 pandemic has laid bare the vulnerabilities in America's domestic manufacturing base. The nation's reliance on globally fragmented supply chains has led to shortages of everything from personal protective equipment to semiconductors to shipping containers. And these supply weaknesses have been a primary driver of elevated price increases.
In fact, one-third of the price increases in 2021 were due to higher vehicle-related prices, as global computer chip shortages constrained automakers' ability to keep up with vehicle demand. Thankfully, though, American companies are starting to make positive moves. Intel recently announced it is creating a new $20 billion semiconductor manufacturing complex in Ohio. And General Motors just announced the company's all-time largest investment, which will strengthen its ability to manufacture batteries and electric trucks. These announcements were more than just good news on jobs and supply. They marked a significant milestone in our nation's economic and industrial renewal.
