Economist Podcasts Industrial waste: the world’s misguided manufacturing policies
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Aug 3, 2023 
Christian Odendael, The Economist's European economics editor, discusses the global shift towards boosting domestic manufacturing. He examines the risks of government spending on local industries and questions the effectiveness of current subsidy policies. The conversation also reveals Japan's tightening asylum policies and the plight of refugees, highlighting societal reactions and calls for reform. Additionally, the podcast touches on the renewed interest in Los Alamos, linked to Oppenheimer, and how it impacts its historical narrative.
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The Industrial Arms Race
- Governments worldwide are engaged in an industrial arms race, heavily subsidizing domestic manufacturing.
- This is driven by concerns about climate change, reliance on autocracies, and job creation.
Economic Dangers of Subsidies
- The current industrial policies risk harming economies due to wasteful spending and duplication of efforts.
- Subsidy shopping by firms forces states to overbid, leading to inefficient allocation of resources.
Denmark's Success without Manufacturing
- Despite potential harm, governments continue subsidizing manufacturing due to fear of being left behind.
- Denmark's higher GDP per person than Germany, despite lacking a car industry, challenges this fear.