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Wilson Center Expert Analysis of the Inflation Reduction Act

Mount Equity Group Tokyo Japan > News > Markets > Wilson Center Expert Analysis of the Inflation Reduction Act

The IRA and Competitiveness

Kent Hughes
Wilson Center Public Policy Fellow

The IRA takes several steps to make America competitive in the world of green energy.  By relying on incentives rather than regulations, companies will be able to use the best available technology rather than being locked into today’s innovations. The IRA also incentivizes use of the prevailing wage (usually the union wage), which will help US manufacturing attract more young people to master today’s high-tech skills. It keeps its eye on the widely shared goal of increasing manufacturing in North America, leveling the international playing field by using American incentives to match the competition from overseas. The European Union already complains that the US incentives may violate the rules of the World Trade Organization, but that will require international negotiations over a new global standard. The IRA also promises $300 billion in deficit…

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