The Revival of Industrial Policy
The Revival of Industrial Policy
Paul Craig Roberts
In the 1970s a few economists attempted to create interest in “industrial policy,” which implied some sort of picking of winners and losers by a government bureaucracy. The topic did not gain traction. Soviet central planning was on the ropes. The influence of the free market Chicago School was rising, and Japanese industrial policy had given the concept two black eyes by trying to prevent Honda from entering automobile production and Sony from producing sound equipment.
The topic died, but not for Ian Fletcher who has spent years with Marc Fasteau producing a 831 page tome titled Industrial Policy for the United States.
My opinion is that as the authors define industrial policy, the most likely result would be that award approval and accompanying subsidies would go to lobby groups that pay the most in campaign contributions. Industrial policy would be a way to reward political friends and for others to purchase their way into the system in the same way that affirmative action has been exploited. The authors’ view of government is, of course, more optimistic, but it is disconnected from the way government works.
Nevertheless, there is an important point that a renewal of interest in industrial policy could successfully address. In the decades during which industrial policy has been off the agenda, American manufacturing and industry have been offshored, depriving US workers and state and local budgets of the income and taxes associated with the production of goods and services that Americans consume; the economy has been financialized at the expense of productive investment; monopolies have been encouraged “in order to compete,” thus hindering new startups.
An industrial policy properly understood could have prevented these destructive developments in the US Economy.
Therefore, I recommend the book as possibly it could result in putting content intoTrump’s renewal of America, a renewal that most certainly is not compatible with H-1B and L-1 work visas. It is pointless to deport aliens and them import them with work visas.
The book’s 180 pages on the history of American protectionism should be read by every academic economist. It is indisputable that the US developed under protectionism and not under free trade. Indeed, the US fought a “Civil War” in order to impose a high tariff regime on the South. The study of economics no longer includes economic history or the history of economic thought. Few economists today have ever read Adam Smith or Alfred Marshall or even Keynes and Paul Samuelson. They know nothing about the Enclosures, the appearance of a labor market, and the industrialization of England.
Today’s academic economists entertain themselves with models that have no bearing on reality. Essentially, they play games and are useless.
In my opinion, advocates of industrial policy have more faith in government bureaucrats than in entrepreneurs. This is their mistake. An entrepreneur is personally involved–it is his money, his career — a bureaucrat has nothing at risk.
For me the question is not whether industrial policy can produce winners but whether it can block policies whose only purpose is to reward a favored interest group.
You can purchase the book here: https://www.barnesandnoble.com/w/industrial-policy-for-the-united-states-marc-fasteau/1145307174?ean=9781009243070
Putin Relies on Negotiations Instead of Military Victory
Putin Relies on Negotiations Instead of Military Victory
Paul Craig Roberts
The wags in Washington are having a field day with Putin and Lavrov:
“Putin and Lavrov are afraid they will offend the West with a military victory in Ukraine and are hoping Trump will rescue them from an embarrassing victory that would hurt globalism by encouraging Russian nationalism.”
“Putin and Lavrov are pleading for negotiations that will rescue them from a victory that Putin has delayed for longer than it took Stalin to drive the Wehrmacht out of Russia, Eastern Europe, and occupy Berlin.”
“Putin and Lavrov are so afraid of victory that they will accept Trump’s terms: Give back all conquered territory, pay reparations to Ukraine, reimburse America and NATO the full cost of the weapons they sent to Ukraine, and accept Ukrainian occupation troops to ensure Russia never again violates Washingtons ‘rules based order.'”
It is a pity that a proud people who have successfully withstood every challenge in their long history have such weak leaders who are humiliating them in hopes of gaining the West’s favor.
How can Putin enter into negotiations with Art-of-the-Deal-Trump from such a perceived weak position. Putin failed to enforce every red line he declared. Throughout the war over Donbas, Putin and Lavrov have been pleading for negotiations and have intentionally delayed winning the conflict. What is to be made of this?
Putin’s own behavior has caused Washington to view him as a weak person, devoid of resolution, a person who ran away from his commitment to Syria, a person so afraid of offending the West that he will not enter into a mutual security agreement with Iran and China, a formidable alliance that would block Washington and ensure peace.
I think that this view of Putin is false even though he is responsible for it. Putin might think that he is reassuring Washington and NATO, but what he is doing is encouraging them to disregard him. The West’s conclusion is: Putin won’t fight, but Washington will.
It is entirely possible that Trump wants to concentrate on America, a country delegated to third world status by previous administrations, and that the extraordinary weakness and irresolution conveyed by the Russian president and foreign minister will not be taken advantage off by Trump who wants to be rid of external events unrelated to his domestic agenda.
This is the best hope. But the downside is that humiliation of Russia is regarded as a definite sign that America is being made great again, with the bringing to heel of foreign enemies.
Since the Cold War’s beginnings in the mid-20th century, Americans have been accustomed to seeing Russia as the principal enemy. Facts can’t overcome the decades of brainwashing and won’t play a role. For Trump a victory over Russia is evidence that he is making America Great Again.
I cannot predict the outcome of these possibilities. But I do note that the possible outcomes are not noticed or discussed. Therefore, what happens can be a surprise to all of us.
Eric Zuesse asks if there has been a turnabout in Russia’s conflict with Ukraine
“At least 11% of Russia’s total annual oil-refinery and storage capacity has been disabled by swarms of drones from Ukraine that have blown them up during the past two months. 11 Russian oil refineries and storage facilities, all within 1,500 miles of Ukraine, have been hit in the past 60 days, and the 73 Russian refineries that have not been hit are beyond that distance. But potentially, 20% or more of Russia’s oil could become eliminated in this way.”
https://ericzuesse.substack.com/p/a-possible-turnabout-in-the-ukraine
Third World US Cannot Get Its Astronauts Home From Space
Third World US Cannot Get Its Astronauts Home From Space
Paul Craig Roberts
US Corporations, Universities, and government have driven America so deep into third world existence that Washington is incapable of rescuing its astronauts trapped in space for 200 days.
Butch Wilmore and Suni Williams made what was supposed to be an eight day trip to the International Space Station and have been suck there for seven months because the United States is no longer sufficiently competent to bring them home.
It was 55 years ago that Americans walked on the moon. In the years since, DEI universities have graduated ignorance instead of competence, US corporations have offshored American manufacturing and industrial capability, and a corrupt government has favored wars in behalf of Israel over everything else.
So the great, hegemonic, “superpower” cannot bring its astronauts home. Biden was too embarrassed to ask Putin to rescue the Americans. So President Trump, acknowledging America’s incapacity as a government, has asked Elon Musk “to go get our astronauts stranded in orbit.”
Musk responded: “will do.” Most likely it will be at his own expense as Washington has spent its money financing Israel’s wars against Arabs and NATO’s war against Russia.
To make America Great Again, a country run deep into the ground by scum Democrats, scum RINOs, scum presstitutes, and scum Woke leftwing sub-creatures, Trump has a huge task, one that scum Democrat and RINO Republican judges will try to block at every turn.”
It is a fight to the death. If MAGA Americans are not prepared to fight to the death, they will lose.
No comments:
Post a Comment