This Is How Industrial Policy Can Go Bad
Odd Lots
Bloomberg
4.5 • 2K Ratings
🗓️ 26 September 2024
⏱️ 54 minutes
🧾️ Download transcript
Summary
Right now, industrial policy is back in vogue in the US. The administration is making an effort at reviving specific sectors, notably in areas of clean energy and semiconductors. But despite all of the money being spent on subsidies of various sorts, there's no guarantee it will actually work. If it were easy, every country would do it. So what are the conditions that make it possible? And how can it go sour? On this episode of the podcast, we speak with Vivek Chibber, a professor at NYU, and the author of several books including Locked In Place, which compares the development experience of South Korea and India. We talk about the interaction of economic policy and domestic politics, as well as the specific political conditions that need to be in place that allow the government to provide "gifts" to companies, and for those gifts to actually turn into leading edge industrial leaders, rather than for that money to simply go into the pockets of investors. Among the things we discuss are: What industrial policy actually is and what it's going to take for the US endeavors to actually become successful.
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| 1:01.0 | Podcasts, Radio News. Hello and I'm Tracy Alaway. Tracy you know we obviously talk a lot of the Odd Lots podcast. |
| 1:18.0 | I'm Joe Wiesenthal. |
| 1:20.0 | And I'm Tracy Alaway. |
| 1:21.0 | Tracy, you know we obviously talk a lot on the show about US industrial policy and these |
| 1:25.7 | various investments were making in things like chips, clean energy, batteries and so forth. |
| 1:30.8 | Did you see there was some actually good news on the chips front recently? |
| 1:34.0 | Oh, what was that? The new fab that T.S.M.C is building in Arizona is getting as good |
| 1:41.5 | yields as their existing fabs in Taiwan. |
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