Biden Takes Charge Of The Supply Shortfalls
Following a semiconductor chip shortage, car manufactures and other producers in the US were forced to cut back on their production. This got the Biden administration worried and consequently, on Wednesday President Joe Biden signed an executive order aimed at addressing the issue.
In the order, the federal agencies were directed to undertake a review of the supply network of essential goods. These goods included pharmaceutics and large-capacity batteries.
The review will precisely aim at semiconductors, essential minerals and materials, pharmaceuticals, and their ingredients. The review will also include advanced batteries similar to those employed in electric vehicles.
The coronavirus pandemic forced the US to rely on China for provisions of some medical equipment, like individual protective gear. During a meeting with Democrats and Republicans, on Wednesday Biden stated that it was imperative that the supply networks are secure and reliable.
Mr. Biden went on to explain how such issues could be resolved. According to him the potential points of weakness were to be identified followed by having a backup alternative in place. He added that even little miscarriages at one stage in the production network could cause massive impacts throughout the entire chain.
The US economy has seriously suffered because of a shortfall in semiconductors and computer chips. The US President said that leaders in his administration and the industry leaders would together work out a solution for the shortage.
Ever since Mr. Biden has assumed office, he has signed quite a few executive orders in an attempt to stabilize the economy. Like rest of the world, the US economy too is badly affected by the coronavirus pandemic. Added to this were US trade wars with some countries like China, under Trump’s administration.
Now that the Biden Administration has taken charge, there is a lot that needs to be done. From resolving supply shortages to improving ties with some of the biggest economies of the world, like China.
Congress recently moved forward with the stimulus package worth $1.9 trillion as well. The stimulus scheme aims at helping those businessmen and industries that were worst hit by the coronavirus pandemic.
According to the executive order, a review lasting 100 days would be carried out across the federal organizations. This is an attempt to tackle the weaknesses in the supply chains of essential minerals, pharmaceuticals and related agreements, and large capacity batteries.
The 100-day review will be followed by a year-long review of six main sectors. These sectors will inter alia include the public health and Defense Industrial Base Sector etc.
In other news, the House will probably vote on Biden’s relief package scheme this week itself. The package aims at bringing down the actual employment rates and alleviating millions who have faced economic hardship because of the pandemic.