U.S. senators propose 25% tax credit for semiconductor manufacturing

Re:U.S. senators propose 25% tax credit for semiconductor ma... by SkyMarshal on Saturday June 19, 2021 @06:50PM (#27565246)

>And it is known how to build such culture in relatively short time frame, culture. Just look at Japan, South Korea or Taiwan.

Indeed. To expand on that, there is an economist Richard Werner [1] who has studied that process in depth.

The TLDR is that new money/credit creation needs to be allocated primarily toward production and innovation, vs consumption or asset speculation (the three things money can be allocated toward).

In post-WWII Japan this process was called "Window Guidance" [2], an informal system by which the BoJ directed the banking system to fund industrial development.

The Asian Tigers and then China all copied the model in their development program too, so it's clearly portable, but interestingly remains informal. You would think an effective model like this would be formalized into law at some point.

[1]:https://professorwerner.org/; https://www.researchgate.net/profile/Richard-Werner

[2]:http://princesoftheyen.com/central-bank-money-creation/ (scroll down to Window Guidance section).

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Re:U.S. senators propose 25% tax credit for semiconductor ma... by rasz on Saturday June 19, 2021 @09:22PM (#27566163)

Another thing China and Japan rapid growth had in common were foreign currency quotas, ownership limits, central planning and indirect subsidies.

"MITI'S SUCCESSES AND FAILURES IN CONTROLLING JAPAN'S TECHNOLOGY IMPORTS" https://www.jstor.org/stable/43294946

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Re:U.S. senators propose 25% tax credit for semiconductor ma... by sudosysgen on Saturday June 19, 2021 @11:52PM (#27566939)

Isn't it basically official in China though?

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