The Semiconductor Crisis Affects a Lot More than Shortages for the Automobile Industry

A perverse combination of economic effects and forecasts related to the pandemic and clumsy trade moves in the last Administration have led to a global shortage of semiconductors. Mostly attention has been focused on its effect on the US automobile industry, but ,as this article points out, it  definitely is not so limited. My client, the appliance association --AHAM , and its members are communicating to Pres. Biden and others that this shortage is affecting appliance manufacturing in the United States right now and just as intensely as it affects the automobile industry. The new Administration needs to be cautious in attempting to reallocate supplies to one industry to the detriment of another great American manufacturing industry. Sometimes industrial policy is necessary, but it creates risks of  unintended consequences. There is a short-term crisis but the solution of expanding domestic capacity to make these vital components is a longer-term issue  that Congress will need to face up to very soon.