This seems like an "if you build it, they will come" situation. We clearly don't have a thriving chip maker industry in this country, so it's going to take a while to build that job market.
I thought the US gov was dedicated to making this happen no matter the cost?
There isn't an easy statement that explains why things are getting worse.
The housing market, for instance, was being affected by low interest rates. Low rates make being a slum lord more profitable than other forms of investment. This caused a massive amount of investment in the housing market by rich people and corporations, and normal people were priced out.
The banks that failed did so because they either invested in dumb things (crypto) or in long-term bonds. Those bonds lose value as interest rates rise, and SVB invested far too much into them.
There's all kinds of reasons