U.S. Treasury Secretary Janet Yellen emphasized the economic benefits of the Inflation Reduction Act (IRA) in a speech in North Carolina and warned that Republican attempts to repeal the IRA could lead to job losses and weakened competitiveness against China. Even Secretary Yellen is trying to strengthen the Democratic position in North Carolina, a traditional Republican stronghold and a key battleground state.

According to the Associated Press on the 5th (local time), Secretary Yellen said in a speech at Wake Tech Community College in Raleigh, North Carolina, “Republican strongholds such as North Carolina have enjoyed significant tax benefits from the IRA,” and “abolishing the IRA law would be a ‘historic mistake. ’” North Carolina has been classified as a Republican stronghold for the past 50 years. It is also the place where former President Donald Trump won the 2020 presidential election.

Recently, with Vice President Kamala Harris’s sudden rise, former President Trump’s position in North Carolina is analyzed to have weakened somewhat. On the 28th of last month, Cook Political Report, a nonpartisan election analysis organization, reclassified North Carolina from “Republican strong” to “competitive.” In this situation, Secretary Yellen is stepping in to give strength to the Democratic Party.

Citing Treasury data, Secretary Yellen said that 90,000 North Carolina households received more than $100 million in residential clean energy tax credits and $60 million in energy efficiency tax credits. “Abolishing IRAs would increase costs for working families and jeopardize manufacturing investment and jobs,” she said, adding that it could give China a competitive edge in the clean energy industry.

Hankyung Economy Reporter hankyung@hankyung.com