This Wall Street Journal headline from this weekend caught our eye:

This is the same Intel that is in line to be the biggest corporate welfare recipient under the CHIPS Act – the Biden bill designed to make sure that microchips are made in the USA. Intel is first in the soup line to receive $8.5 billion in grants and $11 billion in subsidized loans.

Now Intel’s near broke. The industrial policy advocates say it’s because the big bucks haven’t started flowing yet. But the stock market is forward looking and Intel’s outlook is negative. So negative, that they were just replaced by their rival chipmaker Nvidia in the Dow Jones composite. Nvidia gets none of the stashes from the Chips Act, yet its stock price has soared more than four-fold.

Talk about politicians betting on the wrong horse.

Ironically, Intel made more than $20 billion in profits BEFORE the Chips Act welfare bill was passed. So far this year it has lost nearly $20 billion.

There’s an important lesson here. Corporate welfare subsidies never work. Just ask the EV industry.

Amazingly Biden still trumpets the Chips Act as a glittering success.