Congress passed Biden-backed legislation known as the Chip Act to spend $52 billion subsidizing semiconductor production. A Washington Post headline hailed "a big month for Bidenomics" and another headline celebrated "Biden's hot streak."

The Chip Act's passage sparked a volcanic eruption of economic illiteracy from the media and top politicians. Washington Post columnist E.J. Dionne proclaimed, "The chips bill means the Era of Hands-Off Government is over." Sen. Charles Schumer (D-NY), the Senate Majority Leader, huffed, "The old laissez-faire theory is: Leave the companies alone, and they'll do great." Inside the Beltway, anything less than total federal domination of the economy is derided as "laissez-faire." Schumer scoffed at the failure of laissez-faire just after Congress sharply raised taxes on corporations. Jared Bernstein, a member of the White House Council of Economic Advisers, declared, "When it comes to establishing a lasting legacy in terms of existentially necessary economic transformation, history may well put President Biden in the same sentence as FDR and LBJ."

The exaltation occurred because "many politicians believe that Beijing's economic planning is superior to the U.S. free-market system," as a Wall Street Journal editorial noted. Brian Deese, Biden's National Economic Council director, declared, "The question should move from 'Why should we pursue an industrial strategy?' to 'How do we pursue one successfully?'" And since Congress passed the law, that proved that Team Biden was successful.