Biden Admin pledges $15.5B for EV makers amid Auto Strike threat.
President Biden’s Two-Tiered Conundrum: EVs and Autoworkers
President Biden is facing a couple of problems. Electric vehicles (EVs) are not selling as well as expected, and autoworkers’ unions are unhappy with his push for EVs, fearing it could cost them their jobs. So, what is the solution to this dilemma?
To put it bluntly, the Biden administration is now taking action by speeding up the delivery of $15.5 billion, funded by U.S. taxpayers, to artificially boost the EV market and appease political allies.
Accelerating Funding for EVs
On Thursday, Energy Secretary Jennifer Granholm announced that the U.S. government will release $10 billion in loans and $3.5 billion in grants to the industry. This move aims to support the transition to EVs while ensuring that workers and communities are not left behind.
However, the reality is that the U.S. is not transitioning to EVs as smoothly as anticipated. Reports indicate that EVs are sitting unsold in dealers’ lots for extended periods. One reason for this is that EVs are generally more expensive than traditional gas-powered vehicles. According to the data, the average price of a new combustible engine car is around $48,000, while a new electric car costs approximately $55,000.
Moreover, EVs are not only costly to purchase but also challenging to repair. According to one report, EV drivers have to wait nearly two months for repairs and pay an average cost of $6,587.
The Impact on Blue-Collar Workers
The Biden administration claims that its push for EVs is part of the fight against climate change. However, experts argue that EV production requires fewer workers, potentially harming thousands of blue-collar workers.
Politico recently reported that the Biden administration was trying to balance its EV goals with the support of autoworkers’ unions. These unions play a crucial role in mobilizing voters in swing states. However, union leaders have expressed concerns about the potential negative impact on workers in various factories. The UAW has yet to endorse Biden for 2024.
Now, it appears that the Biden administration has found a temporary solution to please the UAW. The newly announced funding will primarily focus on retooling existing factories for the transition to EVs, aiming to support good jobs and a just transition. However, according to an op-ed in The Wall Street Journal, even if major auto companies update their factories for EVs, thousands of auto-manufacturing jobs will still be lost in states like Michigan, Ohio, and Indiana.
Greasing Palms and Taxpayer Burden
The Biden administration’s actions seem to be an attempt to gain the endorsement and support of autoworkers’ unions, funded by taxpayers. However, there is no guarantee that this strategy will protect the jobs of tens of thousands of Americans in the Midwest.
While Energy Secretary Granholm claims that this funding will not impact collective bargaining, it is evident to others that Biden is trying to win favor by greasing some palms. Unfortunately, the burden falls on the taxpayers, and the outcome remains uncertain.
The views expressed in this piece are the author’s own and do not necessarily represent those of The Daily Wire.
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