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Industrial policy will bring you up to a point, and apparently, no further. Anyway, it was wildly successful in Japan, Germany, and the US. Up until the time i
by marcosdumay 2y ago
Industrial policy will bring you up to a point, and apparently, no further.
Anyway, it was wildly successful in Japan, Germany, and the US. Up until the time it stopped working. It has been arguably less successful in China, but still good enough to create massive change.
- ghaff 2y agoI don't really disagree. You need, sorry, effective capitalism and a legal structure underneath the policy but that doesn't replace entrepreneurship and broader cultural norms.
- marcosdumay 2y agoThe problem is that industrial policy seems to be incompatible with effective capitalism and universal rule of law to some extent. It's not very clear (at least to me) how and why. But it never seems to be a positive thing after some point, instead, it seems to have very negative impacts on more developed countries.
- JumpCrisscross 2y ago> It's not very clear (at least to me) how and why It's good at the initial stages and unproductive later on. The problem is that when you need to remove it is also when its recipients are most powerful.
- ghaff 2y agoThere's probably reasonable disagreement on the extent of anti-trust enforcement etc. in developed economies. We may see a case study in the coming years.
- ghaff 2y agoOf course, China has also been a very different animal politically. There's also the whole demographic equation which factors into Japan, China, and (at least eventually) the US.