On Friday, Joe Biden, the US President, proclaimed his government finalized strengthened ‘Buy American Rule,’ aspiring to lift US manufacturing, a more important effort as the nation endeavors with China, and developing more resilient and robust supply chains. Originally announced last July, the Buy American Rule change will need any goods procured with taxpayer’s money to contain three-fourths of America-made content, higher than the present 55 percent requirement.
The President Biden administration finalized the new ‘Buy American Rule’ that calls for at least 60% of the products procured to be manufactured in the United States. The rules will raise that standard to 75% in 2029. pic.twitter.com/gX6NofKUKB
— Live News Now (@LiveNewsNow6) March 5, 2022
In a White House statement, Joe Biden also touted the proclamation from Siemens USA that it would extend US domestic manufacturing of electrical equipment, such as circuit boards for Electric Vehicle chargers, with an additional 54M dollars investment that it expresses would generate three hundred job vacancies.
Furthermore, President Biden spoke a few hours after the Bureau of Labor Statistics (BLS) stated that employment figures in Feb. 2022 surpassed hopes as the American economy created 678K employments during the month. In addition, the joblessness rate declined 3.8 percent last month as well, a new COVID-19 pandemic low. He added that news is a wanted reminder that they’re returning stronger as a country and as a people.
The strengthened Buy American Rule will be phased to offer firms time and space to change their supply chains, according to a senior government official. That process will commence later in 2022, with the requirement shifting to sixty percent in October and then to twenty-nine percent by 2029.
The United States Job Market Recovery is Still Underway
The BLS reported Friday that February was the best month for employments growth since last July. The country has 2.1M employments to go before striking the Feb. 2020 level and regaining all positions lost during the deadly pandemic. Ex-Chief Economist of the US Labor Department and current President of the Economic Policy Institute, Heidi Shierholz, said that they added 678K employments in Feb. 2022, for a total of 7.9M added since December 2020. It is overwhelmingly fast and sustained growth, adding that more than 0.5M employments created monthly on average for over a year.
Moreover, Shierholz said that over 90 percent of employments lost during the pandemic collapse had been recouped. But again, the consensus estimates for the report – 400K employments – missed the mark. Moreover, erratic swings in the labor markets from thirty days to another have made predictors’ employments much harder in the coronavirus pandemic.
The President said that during the pandemic, they observed that supply chain disruptions could put ‘lives and livelihoods’ of US people at risk. At the time, when they need it the most, they’re short on face masks, ventilation, gloves, gowns, and other important health products that they need to purchase abroad. Therefore, they’re creating a new ‘price preference’ – willingness to pay a higher price to procure goods or services.
Joe Biden said they’re speaking about products like advanced batteries, some drug agreements, semiconductors, among other things. It’s worth it for them to make sure they’ve a domestic capability to protect them from nonexistence and price hikes in the near future.