The Problem With an Arms Race

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In terms of growth, there's no clear relationship between having a big manufacturing sector and economic growth. So why are governments pushing ahead, despite the fact that these policies risk harming the economy is more than they boost them? Well, that's the problem with an arms race, right? You don't want to be the one left behind. And European leaders think they must match America's handouts or face catastrophic deindustrialization - but that's probably not true.

The industrial arms race is on. For many political reasons, countries with the means are throwing billions of dollars into local industries. But when will leaders realise that it might harm their economies? Japan’s refugee policy was already stringent, but now the country is cracking down on asylum seekers even more (10:26). And, how Oppenheimer has reignited Los Alamos's tourist appeal (18:22).

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