Planet Money
A controversial idea at the heart of Bidenomics
Feb 23, 2024
Réka Juhász, a Professor of Economics at the University of British Columbia, dives into the polarizing world of industrial policy. She outlines its government-driven approach to boosting specific sectors, which has been deemed taboo by many economists. With Biden's ambitious plans for investing in microchips and clean energy, Juhász explores the potential successes and pitfalls of this controversial strategy. She unpacks historical lessons and examines the challenges of government intervention, posing the question: can this new wave of industrial policy truly reshape the economy?
25:52
Episode guests
AI Summary
Highlights
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Governments adopting industrial policy to boost economic growth face debates on efficiency and market distortions.
- Proponents argue that industrial policy can rectify market imperfections, but critics raise concerns about implementation challenges and political favoritism.
Deep dives
Understanding Industrial Policy
Industrial policy, historically considered controversial in economics, involves governments promoting specific sectors of the economy to boost economic growth. Despite economists traditionally opposing industrial policy due to concerns of inefficiency and market distortions, countries like the US under President Biden are now adopting extensive industrial policies to fund sectors like microchip manufacturing and clean energy. This shift marks a significant departure from past economic ideologies, raising questions about the effectiveness and outcomes of such policies.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
