Economics Explored Industrial Policy vs Free Trade w/ Ian Fletcher, Coalition for a Prosperous America - EP271
Ian Fletcher, co-author of Industrial Policy for the United States, published by Cambridge University Press, joins the show to argue that free trade does not always serve national interests. Fletcher defines industrial policy as government intervention to support better industries, emphasizing that some industries are inherently more valuable. He highlights successful industrial policies in Japan, Korea, and Germany. Fletcher also discusses the role of tariffs in protecting domestic industries, using the example of U.S. electric vehicle tariffs on Chinese imports.
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About this episode’s guest: Ian Fletcher
Ian Fletcher is an Advisory Board Member for Coalition for a Prosperous America. He is the author of Free Trade Doesn't Work (2010) and a co-author of The Conservative Case Against Free Trade. He was Senior Economist at the Coalition for a Prosperous America and a Research Fellow at the US Business and Industry Council. He was educated at Columbia and Chicago.
Timestamps for EP271
- Introduction (0:00)
- Defining Industrial Policy (3:31)
- Ian Fletcher's Journey into Industrial Policy (6:48)
- Better Industries and Manufacturing (11:27)
- Arguments Against Free Trade (18:10)
- Case Studies and Successes of Industrial Policy (28:07)
- Tariffs and Modern Industrial Policy (48:21)
- Taiwan's Success Story (51:46)
- Conclusion and Final Thoughts (53:51)
Takeaways
- Industrial Policy Defined: Industrial policy focuses on nurturing high-value industries that provide higher wages and foster innovation.
- Free Trade Critique: While free trade reduces consumer costs, it can lead to job losses, regional economic disparities, and reliance on foreign manufacturing.
- Global Lessons: Successful industrial policies in countries like Taiwan and Germany show strategic government intervention can be successful in some instances, while failures in the UK and India underscore the risks of mismanagement.
- Technology Pipeline: Ian Fletcher argues that a robust pipeline connecting scientific research to commercialization is critical for maintaining competitiveness in manufacturing and innovation.
Links relevant to the conversation
Ian’s book “Industrial Policy for the United States: Winning the Competition for Good Jobs and High-Value Industries”:
https://www.amazon.com.au/Industrial-Policy-United-States-Competition/dp/1009243071
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Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.