It's complicated, isn't it? Industrial policy is definitely tilting the scales in favor of the government. Comparisons to China often contain an "isn't China smart?" bias. Corporate America has, over the last 40 years been complicit in the hollowing out of our industrial base because it has made sense in pure bottom-line terms. Should the government have intervened? Much of that period operated on the Fukuyama-type assumption that markets would end wars and the neo-liberal order would sweep all conflicts into a happy pool of globalist nirvana. That didn't happen. So, rather than simply handing over CHIPS Act funds, Trump decided there should be a quid pro quo. Remember the TARP era of forcing TBTF banks to take the preferred? Provided we are not taking the Solyndra route, I am prepared to see how this experiment plays out. I think refocusing our extractive energies to maximize the capture domestically of REE and other key materials is inspired, as is the relaxation of nuclear regs that has the FT wringing its hands about a nuclear winter and radiation everywhere. It's a new era. Can't wait for part 2!
Thanks Neil. Great input from you and yes I remember TARP. The last 40 years showed that it was more profitable to let the industrial machines lie sleeping and get the cheap goods from elsewhere. I guess that my view point would be more positive if I could trust the current administration from making the wrong moves against these public companies. Thx
I thought that this article expressed a very real concern about government involvement in the markets. Keep up the good work in presenting us readers with this kind of information.
It's complicated, isn't it? Industrial policy is definitely tilting the scales in favor of the government. Comparisons to China often contain an "isn't China smart?" bias. Corporate America has, over the last 40 years been complicit in the hollowing out of our industrial base because it has made sense in pure bottom-line terms. Should the government have intervened? Much of that period operated on the Fukuyama-type assumption that markets would end wars and the neo-liberal order would sweep all conflicts into a happy pool of globalist nirvana. That didn't happen. So, rather than simply handing over CHIPS Act funds, Trump decided there should be a quid pro quo. Remember the TARP era of forcing TBTF banks to take the preferred? Provided we are not taking the Solyndra route, I am prepared to see how this experiment plays out. I think refocusing our extractive energies to maximize the capture domestically of REE and other key materials is inspired, as is the relaxation of nuclear regs that has the FT wringing its hands about a nuclear winter and radiation everywhere. It's a new era. Can't wait for part 2!
Thanks Neil. Great input from you and yes I remember TARP. The last 40 years showed that it was more profitable to let the industrial machines lie sleeping and get the cheap goods from elsewhere. I guess that my view point would be more positive if I could trust the current administration from making the wrong moves against these public companies. Thx
I thought that this article expressed a very real concern about government involvement in the markets. Keep up the good work in presenting us readers with this kind of information.