A Debate with Scott Sumner: Industrial Policy, China, and National Security

In this episode, Noah Smith and Erik Torenberg are joined by Scott Sumner, an American economist and previously the Director of the Program on Monetary Policy at the Mercatus Center at George Mason University, examine the impact of U.S.-China relations on economic and industrial policies, discussing topics such as tariffs, manufacturing capabilities, technologies like drones and batteries, climate change, defense strategies, and the evolving role of neoliberalism.

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Highlights from the Episode:

• Neoliberalism vs. Industrial Policy: The world is moving away from neoliberalism toward industrial policy and authoritarian nationalism.
• Chinese manufacturing of green technology has supported global climate efforts, sparking debate over whether US trade barriers on Chinese green tech are counterproductive, alongside a discussion of carbon taxes versus other climate policies.
• China now matches US and allies combined in manufacturing capacity.
• Trump's tariffs are seen as ineffective for reindustrialization, while Biden's CHIPS Act and IRA are viewed as more successful in specific sectors, prompting a discussion on targeted versus broad industrial policies.
• Housing and healthcare costs are significant barriers to living standards.

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LINKS:

Noahpinion: https://www.noahpinion.blog/

The Pursuit of Happiness: https://scottsumner.substack.com/