I think the other reason is that the countries that were best known for pursuing industrial policy, like Japan and western Europe, they did very well up until around the ’90s, and their economy started to slow down. Solyndra or supersonic transport or fast breeder reactors or syn crude, these were all boondoggles where the government spent a lot of money and didn’t have much to show for it. Greg Ip: I think people intrinsically, when they hear that the government is going to be picking winners, they think, “Well, the government can’t do that better than the private market, can it?” And the mistakes that we’ve made with industrial policy tend to be remembered. If you have questions, observations, or ideas for future episodes, email us at You can find us on TikTok at the following excerpt, Greg Ip discusses government interventions in the economy and the factors that have led to supply chain breakdowns.ĭerek Thompson: So industrial policy has a bad reputation. Greg Ip, the chief economics commentator at The Wall Street Journal, helps us separate fear from fact as we talk about industrial policy. build an abundance of computer chips and green energy infrastructure. ![]() But there’s another view, which is that industrial policy is utterly necessary to help the U.S. There is a strong case against industrial policy in economics: It’s the idea that governments do not know better than markets when it comes to picking winners, and industrial policy just wastes money and distorts the economy. ![]() is pivoting toward what some people call “industrial policy”-that is, using the government to support key industries, like green energy manufacturing and the manufacture of advanced computer chips.
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