• Sun. Apr 14th, 2024

The Perils of Economic Self-Reliance

BySamantha Johnson

Mar 10, 2024
The Perils of Economic Self-Reliance

In the past three years, the world has experienced challenges such as COVID-19 and the war in Ukraine that highlighted the risks associated with deep global economic integration. As a result, governments and companies worldwide are now focused on shortening supply chains, rebuilding domestic production capacity, and diversifying suppliers. These actions are not only driven by pragmatic risk management but also by a desire for economic self-reliance, which could potentially disrupt any stable restructuring of the global economy.

In his 2022 State of the Union address, U.S. President Joe Biden pledged to create an economy where everything is made in America, from the deck of an aircraft carrier to the steel used in highway guardrails. This commitment led to the passing of the CHIPS and Science Act and the Inflation Reduction Act, which provide substantial subsidies and tax incentives to promote domestic manufacturing. The Biden administration has also introduced the concept of “friend-shoring,” which focuses on regional self-reliance based on national security and normative arguments.

By prioritizing domestic production and diversifying suppliers, governments and companies aim to reduce vulnerabilities associated with global economic integration. However, the pursuit of economic self-reliance could potentially hinder the stable restructuring of the global economy. As countries strive to secure their supply chains and enhance domestic manufacturing capabilities, it is crucial to strike a balance between risk mitigation and ensuring a resilient, interconnected global economy.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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