Confronting Capitalism with Vivek Chibber
Can Trump Bring Back Manufacturing?
Mar 12, 2025
The discussion delves into Trump's trade strategies and their impact on American manufacturing. It contrasts various presidential approaches, examining the roles of tariffs versus subsidies in reshoring industry. Insights from post-war Japan and France highlight successful state-led industrial policies, while the challenges of the CHIPS Act reveal systemic hurdles in achieving manufacturing goals. The podcast also critiques de-industrialization in the U.S. and advocates for public investment and stronger labor movements to revitalize the industry against global competition.
46:19
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Quick takeaways
- Trump's tariffs aimed at reviving American manufacturing have largely failed to create significant jobs while exposing the economy to international retaliation.
- A successful industrial policy requires robust governmental support and a focus on public investment to effectively rebuild and direct key sectors.
Deep dives
Understanding Industrial Policy
Industrial policy involves state intervention in economic sectors to influence investment and production patterns, distinguishing itself from broader macroeconomic management. Rather than focusing solely on variables like interest rates, industrial policy seeks to impact specific industries or even individual firms by guiding their investment decisions. The U.S. has historically utilized this approach less than developing nations, which often rely on it to boost key sectors. Countries like Japan and France effectively implemented industrial policy during their post-war recovery, using it to rebuild and direct their manufacturing capabilities.
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