US president Joe Biden pledged in his first State of the Union address to improve the nation's economy by fixing the strained supply chain, repairing crumbling highways and bridges and increasing domestic manufacturing.
Inflation is robbing families of benefits they might gain from record job growth and higher wages, he said yesterday. "That is why my top priority is getting prices under control," Biden said.
Inflation has worsened in part because of a drop in domestic manufacturing and disrupted supply chains that bring imports to the US at a higher cost. "When factories close, it takes longer to make goods and get them from the warehouse to the store, and prices go up."
Biden plans to control inflation and lower costs by making more goods in the US, including automobiles and semiconductors.
"Instead of relying on foreign supply chains, let us make it in America," Biden said. His said his plan for domestic infrastructure will result in "more goods moving faster and cheaper in America."
Repairing transportation infrastructure is a key part of the plan. Supply chains have been upset for more than a year because of a surge in imports following an initial slow down in the first months of the Covid-19 pandemic.
"We will create good jobs for millions of Americans, modernizing roads, airports, ports and waterways all across America," Biden said. "We will not be able to compete for the jobs of the 21st century if we do not fix that."
Work will begin this year to fix more than 65,000 miles of highway and 1,500 bridges that are in disrepair. Other infrastructure plans include construction of a national network of electric vehicle charging stations, replacement of poisonous lead water pipes and improved availability of affordable high-speed internet.
Biden's comments underscore plans announced last week to fix logistics supply chains by making upgrades to infrastructure, including a $450mn grant program for US ports.
