Manchin-Schumer bill has key weakness

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Manchin-Schumer bill has key weakness
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It relies on a non-existent electric vehicle supply chain.

The proposed legislative compromise between Democratic Sens. Joe Manchin and Chuck Schumer would either boost the share of electric vehicles on the road or undermine such efforts completely — depending on whom you ask.

That means “[to] the extent the policy is effective, it will slant the market in the direction of American products,” George Mason economist and Bloomberg columnist Tyler Cowen wrote. “This is the one issue that may stop this proposal from going forward,” Joseph McCabe, president and CEO of AutoForecast Solutions, said in an interview. “The current language sets aggressive time-based sourcing targets, which are considered very difficult to hit. Basically, it is designed to push out the reliance on countries like China but will most likely add significant costs and stress on the supply chain.

“Broadly speaking,” he said, the measure “is an important step for the United States. We can’t stop one dependence on oil for transportation and go to a new dependence on batteries.”

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