The American Manufacturing Renaissance with Michael Underhill | Tao of Chao 19

The Tao of Chao Podcast

Michael Underhill, a trained economist, investment strategist, and investor in the infrastructure space, emphasizes the urgency of two crucial policy areas for the future — energy and immigration. Michael and Philip Chao stress the need for a comprehensive energy policy to prepare for increased energy dependence and a coherent immigration policy to support the human capital demand necessary for the American manufacturing revival. These policies are not just beneficial but essential for the future of our economy.

With $2 trillion committed by the government through the Infrastructure, CHIP, and Inflation Reduction Acts, the revival of U.S. manufacturing and infrastructure is underway. Over the next 5-20 years, private industry might invest an additional tenfold. The goal is to bring back high-value manufacturing and critical industries to the U.S., creating thousands of blue and white-collar jobs locally. Significant investments will focus on chip fabrication, energy production, and transition. The next five years may be a renaissance for the American economy, driven by a new industrial policy emerging from great power competition and supply chain insecurities highlighted by the pandemic.

However, challenges lie ahead, particularly in sourcing strategic minerals and accessing a labor force with the necessary skills. These limited resources are a concern for all major economies. Michael Underhill explores these themes and challenges, providing insights into why inflation and interest rates will likely remain high for much longer.

DISCLOSURE: Views expressed in the Tao of Chao podcasts are individual opinions and they do not represent the employers of each guest or the firm with which each guest is associated. Our podcasts are for educational and informational purposes only and should not be deemed or viewed as investment advice or recommendations. Please consult your personal financial advisor, investment expert, or investment fiduciary before taking any actions about your plan and investments.

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1. Cold Open (00:00:00)

2. Introducing guest: Michael Underhill (00:00:00)

3. Background: Unpacking $2 Trillion in stimulus for infrastructure (00:02:05)

4. Has this type of infrastructure investment happened in the past? (00:07:14)

5. Impacts of infrastructure investment (and energy policy) (00:08:42)

6. Energy transition and impact on economy (00:13:53)

7. Limiting factors on growth (00:18:07)

8. Limiting factor 1: Strategic metals (00:19:51)

9. Limiting factor 1: Labor force (00:22:33)

10. How does inflation factor into stimulus spending (00:29:38)

11. Central Bank policy on inflation rates (00:33:51)

12. Why is inflation expectation still anchored (00:36:40)

13. What are we seeing globally? (00:43:19)

14. Wrapping up (00:47:38)

15. EoS (00:48:40)

16. Legal Disclosure (00:49:02)