The global economy sees a smart stimulus driving the US economic boom; South Dakota is on the sidelines – Dakota Free Press

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Merry Christmas to the world, says the United States with its booming economy:

A booming US economy spills over the globe, leaving global supply chains struggling to keep up and push prices up.

The strength of the US expansion is also prompting foreign companies to invest in the US, betting that growth will continue to accelerate and outpace other major economies.

US consumers, filled with trillions of dollars in fiscal stimulus, buy rare manufactures and materials [Tom Fairless, “Booming U.S. Economy Ripples World-Wide,” Wall Street Journal, 2021.12.21].

Smart tax policy attracts investment, production and jobs …green works:

Businesses are investing money in the United States, seeking to take advantage of what some expect to be a lasting increase in demand. In some cases, they are bringing production closer to US consumers, seeking to avoid supply shocks associated with the pandemic and global trade wars.

The recent US fiscal stimulus “gives us more confidence in the US market. It’s easier to get into this area and easier for customers to get in, ”said Marc Becker, CEO of Offshore at Siemens Gamesa Renewable Energy. HER, a wind turbine manufacturer based in Spain.

The company plans to invest more than $ 200 million to build offshore turbine blades in Virginia, which it says will be a global manufacturer’s first engagement in a US-based supply chain.

… Meyer Burger technology AG , a Swiss manufacturer of solar modules, plans to build its first plant in the United States by the end of next year, adding to existing production facilities in Germany. This signals a shift for the solar industry, where around 80% of production is currently located in China. [Fairless, 2021.12.21].

Meanwhile, seven Republican-led states and one Democratic-led state have depressed this economic boom by not spending the American Rescue Plan Act dollars that are driving this economic growth:

Many states have directed those funds toward lost income replacement or economic aid programs, but a handful of states, mostly Republican, will enter the New Year without spending a dollar on the program. The eight states together account for about $ 16.5 billion in unspent aid.

GOP-controlled governments in Missouri, South Carolina, Georgia, Mississippi, Arkansas, Nebraska and South Dakota have yet to budget their funds, according to the Center on Budget and Policy Priorities, which tracked the state’s use of federal aid. Rhode Island, the only Democratic-controlled state still to budget for funds, is expected to approve a plan in early January when its legislature meets again.

GOP-controlled governments in Missouri, South Carolina, Georgia, Mississippi, Arkansas, Nebraska and South Dakota have yet to budget their funds, according to the Center on Budget and Policy Priorities, which tracked the state’s use of federal aid. Rhode Island, the only Democratic-controlled state not yet budgeted for funds, is expected to approve a plan in early January when its legislature reconvenes [Bryan Lowry and Jeanne Kuang, “States Have Billions of Federal Covid Relief Aid to Spend. Some Haven’t Spent a Dollar,” McClatchy, 2021.12.22].

Hmmm… maybe South Dakota’s slowness in spending President Biden’s US bailout dollars is part of why South Dakota’s economy is not keeping up with the national economic boom. We can only hope that the Governor’s shortsighted caucus won’t delay or further sabotage the Governor’s plan to finally invest those ARPA dollars in much-needed infrastructure improvements that will support South Dakota’s economic recovery. . The rest of the country is spending federal stimulus measures against covid and causing ripples in the global economy; South Dakota must also catch up and expand this wave of growth.


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