The Morning Dispatch: A Shortfall of Chips

Plus: A barrage of sexual harassment allegations against New York Gov. Andrew Cuomo.

(Photo by Doug Mills/Pool/Getty Images.)

Happy Wednesday! Today’s newsletter features 1,200 words on semiconductor manufacturing and supply chain managem—Hey! Where do you think you’re going? Don’t click out of this email, this is important, darn it!

Quick Hits: Today’s Top Stories

  • President Biden pledged in a speech yesterday that the United States will have enough supply for “every adult in America” to be vaccinated by the end of May, due in large part to a corporate partnership between Johnson & Johnson and Merck that will expedite manufacturing of the former’s recently authorized vaccine.
  • The Treasury Department announced on Tuesday it was imposing sanctions on seven Russian government officials in response to their involvement in the poisoning and imprisonment of opposition leader Alexei Navalny. “The Kremlin’s use of chemical weapons to silence a political opponent and intimidate others demonstrates its flagrant disregard for international norms,” Treasury Secretary Janet Yellen said.
  • The White House withdrew Neera Tanden’s nomination to serve as director of the Office of Management and Budget last night, as it became clear the former think tank president did not have enough support to be confirmed by the Senate.
  • The Senate voted 84-15 on Tuesday to confirm Rhode Island Gov. Gina Raimondo as Secretary of Commerce.
  • The governors of Texas and Mississippi announced executive actions yesterday rolling back pandemic-related restrictions, ending statewide mask mandates and allowing all businesses to reopen at full capacity. “COVID-19 has not disappeared,” Texas’ Republican Gov. Greg Abbott said, “but it is clear from the recoveries, vaccinations, reduced hospitalizations, and safe practices that Texans are using that state mandates are no longer needed. Today’s announcement does not abandon safe practices that Texans have mastered over the past year.”
  • The United States confirmed 57,845 new cases of COVID-19 yesterday per the Johns Hopkins University COVID-19 Dashboard, with 4.8 percent of the 1,210,732 tests reported coming back positive. An additional 2,143 deaths were attributed to the virus on Tuesday, bringing the pandemic’s American death toll to 516,476. According to the COVID Tracking Project, 46,388 Americans are currently hospitalized with COVID-19. According to the Centers for Disease Control, 1,731,614 COVID-19 vaccine doses were administered yesterday, bringing the nationwide total to 78,631,601.

Breaking Down the Global Computer Chip Shortage

Last Wednesday, President Biden signed an executive order intended to “strengthen the resilience of America’s supply chains.” The order detailed a variety of potential vulnerabilities—from pharmaceuticals to rare-earth minerals to large capacity batteries—but the main impetus for the action was a global semiconductor shortage that threatens to slow manufacturing in the automotive, consumer electronics, and home appliances industries.

In remarks just before signing the order, Biden held up one such semiconductor—more commonly known as a computer chip—and told reporters that while it is “smaller than a postage stamp,” it contains eight billion transistors, each 10,000 times thinner than a single human hair. “These chips are a wonder of innovation and design that powers so much of our country, enables so much of our modern lives to go on,” he said. “Not just our cars, but our smartphones, televisions, radios, medical diagnostic equipment, and so much more.”

The automotive industry is currently among the hardest hit. With manufacturers adding more and more features to new models—touch screen surfaces, high-tech sensors, cellular and internet connectivity—the number of microchips in most cars has risen to more than 100. And with demand for semiconductors severely outpacing supply, companies across the globe—General Motors, Ford, Toyota, Volkswagen, Nissan, Subaru—have had to shut down or alter production in recent weeks.

How did we get here? It is, as you might expect, complicated.

To take a 30,000-foot view: Domestic automobile production ground to a halt last April as the coronavirus pandemic set in—seriously, check out this chart from the St. Louis Fed—so car manufacturers understandably scaled back their orders of input materials, including semiconductors. At the same time, however, demand for consumer electronics began to skyrocket, primarily thanks to increases in remote work and remote schooling. And those products need computer chips, too.

Cuomo Facing Multiple Investigations

New York Gov. Andrew Cuomo’s bad week has turned into a bad month. Three different women have come forward over the course of just six days with accusations that the governor initiated inappropriate conversations and made unwanted advances. Cuomo now faces two investigations: One into his administration’s alleged covering up of COVID-19 deaths in nursing homes and another looking at his alleged sexual misconduct.

Cuomo has sought to control each step of the inquiry process in both cases—threatening state lawmakers into silence and deflecting blame for coronavirus deaths to nursing home employees rather than his administration; and, in the sexual harassment scandal, seeking to hand over the investigation into his alleged behavior to former U.S. District Judge Barbara Jones, who has close ties to the governor’s orbit. Following backlash from state and federal lawmakers, the latter probe has instead been handed off to New York Attorney General Letitia James.

The latest allegation against the governor comes from Anna Ruch, a 33-year-old woman who told the New York Times Cuomo inappropriately touched her at a wedding reception in 2019. She provided a photograph of the alleged incident, and told the Times that—after she rebuffed his advances—the governor said her behavior was “aggressive” and asked if he could kiss her.

“It’s the act of impunity that strikes me,” Ruch said. “I didn’t have a choice in that matter. I didn’t have a choice in his physical dominance over me at that moment. And that’s what infuriates me.”

Ruch was not the first to allege impropriety on the part of Cuomo. In an essay published on Medium last week, a former aide to the governor named Lindsey Boylan detailed her own experiences of harassment. Boylan—who is now running for Manhattan borough president—included a series of screenshots of conversations between herself and other staffers and friends in which Cuomo’s conduct is referenced both vaguely and explicitly.

Worth Your Time

  • A few weeks back, we wrote to you about Sen. Mitt Romney’s child allowance proposal, and the robust debate that it sparked on the right. We’ve previously linked to a few articles praising the plan, and American Compass’ Oren Cass has published a thoughtful critique of it in the New York Times. Conceding that the allowance is “innovative and well-designed,” Cass argues it doesn’t do enough to incentivize work. “Money itself does little to address many of poverty’s root causes, like addiction and abuse; unmanaged chronic- and mental- health conditions; family instability; poor financial planning; inability to find, hold or succeed in a job; and so forth,” he writes. “Work plays a critical role in people’s lives, as a source of purpose, structure and social interaction; a prerequisite for upward mobility and a foundation of family formation and stability.”
  • Gallons of ink have been spilled over the seemingly unchecked proliferation of conspiracy theories in recent months and years, but such strains of thinking have been around forever. The difference today, Ross Douthat argues in his latest column, is the speed with which conspiracy theories spread and how deeply technology allows them to penetrate people’s psyches. “What we should hope for,” he writes, “is not a world where a ‘reality czar’ steers everyone toward perfect consensus about the facts, but a world where a conspiracy-curious uncertainty persists as uncertainty, without hardening into the zeal that drove election truthers to storm the Capitol.”
  • If you’re interested in foreign policy—particularly in the Middle East—you should never miss a piece from Dexter Filkins in The New YorkerHis latest, published Monday, focuses on Afghanistan, the Taliban, peace talks, and what comes next. “The United States has spent more than a hundred and thirty billion dollars to rebuild Afghanistan,” he writes. The country “presents Joe Biden with one of the most immediate and vexing problems of his Presidency. If he completes the military withdrawal, he will end a seemingly interminable intervention and bring home thousands of troops. But, if he wants the war to be considered anything short of an abject failure, the Afghan state will have to be able to stand on its own.”

Presented Without Comment

Twitter avatar for @JakeShermanJake Sherman @JakeSherman

The back cover of @SpeakerBoehner’s book — from @PunchbowlNews Midday. Image

Also Presented Without Comment

Twitter avatar for @JonErlichmanJon Erlichman @JonErlichman

On this day in 2000: Palm’s IPO values the company at $53 billion. Image

Toeing the Company Line

  • On yesterday’s episode of Advisory Opinions, Sarah and David break down Lange v. California, a Fourth Amendment case before the Supreme Court that will determine whether a police officer’s hot pursuit of a person suspected of committing a misdemeanor can justify the officer’s warrantless entry onto the suspect’s property. Plus: Should women be constitutionally required to register for the military draft?
  • The House passed a $1.9 trillion stimulus bill over the weekend, but there are a few more obstacles the legislation must overcome before it reaches President Biden’s desk. Haley dives into the budget reconciliation process—and how Biden’s Middle Eastern airstrikes last week are sparking debate over the authorization for the use of military force—in Tuesday’s edition of Uphill.
  • There’s been a lot of talk recently about possible ways to reform our electoral process: ranked-choice voting, multi-member districts, and the like. In the latest edition of The Sweep, Charlotte took a look at how these different voting methods end up working out in practice in various states—and how they could change our politics if they were adopted nationwide.
  • And in his latest French Press (🔒), David explores whether there’s a civil rights remedy for the wokeness that increasingly permeates our culture. “The more that hyper-left and hyper-woke policies and practices divide employees and students into distinct identity groups, and the more they enforce workplace policies and practices on the basis of those group differences, the more those policies and practices will collide with the plain language of federal anti-discrimination statutes,” David writes.

Reporting by Declan Garvey (@declanpgarvey), Andrew Egger (@EggerDC), Haley Byrd Wilt (@byrdinator), Audrey Fahlberg (@FahlOutBerg), Charlotte Lawson (@charlotteUVA), Ryan Brown (@RyanP_Brown), and Steve Hayes (@stephenfhayes).