Michael Munger on Industrial Policy

Michael Munger, an economist and political scientist from Duke University, discusses the complexities of industrial policy in a democratic context. He argues that industrial policies often lead to crony capitalism, as attempts to improve the system fall victim to political realities. The conversation highlights how profit and loss influence resource allocation, the challenges of implementing effective strategies, and the cultural barriers to tax compliance in places like Argentina. Munger critiques expert-driven solutions and underscores the unpredictability of political dynamics.