"Econ 102" with Noah Smith and Erik Torenberg The Deindustrialization Paradox
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Apr 24, 2025 Dive into a thought-provoking discussion that connects the eerie themes of 'Black Mirror' with the real-world implications of technology on society. Unpack the economic impacts of Trump’s tariff policies versus Biden’s growth strategies. Explore the rising influence of libertarianism in American politics and how social media shapes democratic engagement. The hosts blend humor with insightful analysis, shedding light on trade dynamics and ideological shifts that reflect the complexities of our modern era.
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The Tariff Paradox in Manufacturing
- Tariffs aiming to replace foreign goods with domestic production often backfire, reducing overall manufacturing jobs.
- Tariffs lower purchasing power, hurt exports, shift consumption to services, and add costly domestic sourcing burdens.
Biden's Growth-Focused Industrial Policy
- Biden's growth-oriented industrial policy focuses on adding support rather than disrupting the economy.
- Targeted subsidies successfully spurred massive private investment, exemplified by the TSMC chip factory in Arizona.
Libertarianism's Unique Political Role
- Libertarianism acted as a positive diversion for right-wing politics in the U.S., preventing more destructive ethnocentric and protectionist tendencies.
- Without libertarian influence, right-wing movements risk becoming oligarchic, xenophobic, and corrupt.