Biden administration supports place-based industrial policy.

Biden administration supports place-based industrial policy.

Saving America’s Forgotten Towns: Biden’s Place-Based Industrial Policy

Opening his speech with a humorous anecdote, Ro Khanna, a congressman from Silicon Valley, recounted his recent journey through eastern Ohio and western Pennsylvania. These once thriving manufacturing hubs have now withered, leaving behind broken promises, shattered families, and communities plagued by job losses. In a region where bars cater to fans of the Pittsburgh Steelers simply because so many people have left, the stories of despair and hardship are plentiful.

America, a nation built by immigrants seeking a brighter future, has always been marked by its citizens’ willingness to chase opportunity. However, what about those who desire to stay in their hometowns but feel trapped by a lack of prospects? Joe Biden aims to address this dilemma by providing every hardworking American with a good job, regardless of where they live. His administration has embraced a “place-based” industrial policy, allocating billions of dollars to rejuvenate struggling regions and stimulate private-sector investment.

The income disparity between wealthy areas and the rest of the country has increased over the years. Big cities thrive while rural areas lag behind, with the average income being significantly lower in rural regions. Ro Khanna identifies this divergence as “the biggest challenge for the country.” In response, the Biden administration believes place-based policies can narrow this gap. Congress has already authorized at least $80 billion for place-based spending through competitive grants, focusing on areas such as semiconductor manufacturing, clean-hydrogen hubs, and direct air-capture hubs.

Some skeptical voices question the effectiveness of place-based policies, highlighting mixed results in the past. While success stories like the Tennessee Valley Authority and North Carolina’s Research Triangle are often cited, the challenges faced by different regions vary greatly. New York’s attempt to build a solar panel industry serves as a cautionary tale, with a billion-dollar investment falling short of expectations.

Actual residents of these struggling areas cautiously remain hopeful but demand tangible results. Jim Grant, a retired auto worker from Warren, Ohio, expresses the weariness of promises made and forgotten. He urges policymakers to “show me something.” Unfortunately, there is a notable gap between authorizing funds in Congress and actually appropriating them, with recent budget requests falling short of what was promised. Additionally, the changing nature of manufacturing, with increased automation and fewer low- and mid-skill jobs, presents its own hurdles.

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While the Biden administration’s desire to uplift communities like Warren and Johnstown is evident, the risk of failure looms. The success of place-based policies remains uncertain, and their efficacy depends on various factors unique to each region. Nevertheless, the Biden administration’s push for place-based industrial policy signifies a significant shift in approach, with proponents arguing that it is here to stay.

In conclusion, the forgotten towns of America are cautiously optimistic about Biden’s place-based industrial policy, hoping for revitalization and economic growth. However, concerns remain regarding the actual implementation and long-term effectiveness of such policies. The fate of these struggling communities hangs in the balance, waiting to see if promises turn into transformative action. Through humor, hope, and a determination to confront one of the biggest challenges facing the nation, the Biden administration embarks on a journey to reshape the American industrial landscape and give forgotten towns a fighting chance.