"Econ 102" with Noah Smith and Erik Torenberg A Debate with Scott Sumner: Industrial Policy, China, and National Security
89 snips
Jan 15, 2025 
In this engaging conversation, Scott Sumner, a renowned economist and former director at the Mercatus Center, dives into the shifting dynamics of U.S.-China relations and its impact on industrial policy. He critiques the retreat from neoliberalism towards more authoritarian approaches, especially in manufacturing green technology. The discussion also highlights China's role in global climate efforts, debates the effectiveness of tariffs, and underscores the essential link between manufacturing capabilities and national security amid rising geopolitical tensions.
AI Snips
Chapters
Transcript
Episode notes
Shifting Economic Policy
- Scott Sumner identifies as a "neoliberal" and believes neoliberalism was the most successful policy framework in history.
- He observes a shift away from neoliberalism toward industrial policy and authoritarian nationalism.
Industrial Policy for National Security
- Noah Smith argues for industrial policy due to China's manufacturing capacity exceeding that of the US and its allies combined.
- He highlights the potential threat to economic freedom if democracies lack manufacturing power.
Industrial Policy Skepticism
- Scott Sumner is skeptical of industrial policy, citing potential counterproductivity, like trade barriers on Chinese green tech.
- He argues that tariffs don't work for reindustrialization, and effective policies should address savings-investment imbalances.