Why Labour's UK Industrial Strategy Could Leave Us Poorer | Economy Explained

In this episode of the new IEA series, Economies Explained, Harrison Griffiths, International Programmes Manager, delves into the controversial topic of industrial strategies. As the new UK Labour government embraces the concept of mission-driven government, Griffiths exposes the potential pitfalls and hidden costs of such top-down economic planning. Drawing from historical examples and economic principles, he challenges the notion that government-led industrial strategies are the key to economic growth and prosperity.

Griffiths takes viewers on a global tour, examining industrial strategy experiments in countries like South Korea, Germany, and China. While these nations have seen periods of growth, our host reveals the unseen costs and long-term consequences of state intervention in the economy. From misallocated resources to concentrated economic power, Griffiths argues that even seemingly successful industrial policies often leave countries poorer than they would have been under free market conditions.

As debates around economic policy intensify in the face of global challenges, this video offers a timely and thought-provoking perspective on the limits of government-driven economic planning. Whether you're a policy maker, student, or simply interested in understanding the forces shaping our economic future, this episode of Economy Explained provides valuable insights into why industrial strategies consistently fall short of their lofty goals.

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[heremyjunt]

Didn't you guys support Truss' mini-budget ? How you have the nerve to still be an organisation is beyond me

[shaunmac]

And not a single word about the structural issue that is causing consumer demand to plummet, and which is affecting the entire world economy regardless of whether it was state suported, industrial, or service-based.

[carwynj.thomas]

But mission orientated approach doesn’t try to out perform the free market. What it does do is incentivise free market to go towards a specific goal.

[timmk]

You guys literally brought the economy to its knees with your ideas. What are you doing still trying to pretend you have clout? 😂

[TCJones]

So which american billionair, who wants to turn the uk into a mini usa without workers' rights, paid for this tuften street hatchet job?

[findlay]

mission led government scares the heck out of me... governments shouldnt be trying to 'shape' societies'... they work for us ... remember!

[johnjakson]

If you don't understand how much energy we as a "civilized" society uses, it's a lot more than people imagine. When people think they have net zero solar on their home roof they get that warm fuzzy smug feeling of job well done. Energy uses is about 100 times as large as the solar panels on your roof, its in the fossil fuels that really powers transport, industry, commercial, residential. Every thing we touch is made of energy, esp in a throwaway society .Increasing efficiency has cancelled out more wasteful energy use and higher lifestyle. energy use. IE big ass cars.

See "Without the hot air" by David MacKay, See Wikipedia "Per Capita Enrgy Use", See "LLNL Energy Flow Graph", find your US state or country, its all there.

[alanak]

Dead right but smarmer is not listening !

[scarletpimpernel]

Well done and well argued! Thank you.

With South Korea, first you gave the theoretical argument, then backed it up with empirical studies.

Now if only IEA could advise Starmer's government, instead of Ms. Mishikata....

[Miks]

What's the alternative to industrial strategy, your ill fated mini budget. The zero strategy and beyond simplistic alternative, that you endorsed??? Also why have so many countries with industrial strategy historically out performed the UK? Germany and Japan grew their economies far more. Also China have done pretty well having an industrial strategy. Basically the UK has had no industrial strategy since 1980, look where that has left us, we literally live in an ever increasing foreign owned privatised hell scape of rent extraction. I fell like I live in a country that was invaded and subjugated by some malign foreign power, sucking all the wealth from the citizens. You guys look like the enemy to me.

[ballofcuriosity]

And you're the ones to tell? The Mini Budget Guys?

[greeny]

The examples you gave are all of incredibly strong economies. If you said we'll end up like South Korea, Germany or China I'd have said great.

[plagiarisedwords]

You are the jokers who support Liz Truss's mini budget. Please stop talking about UK economics. You are clearly clueless

[jonkey]

Very interesting ... until I realised you guys are the Truss guys.

[somebodyintheinternet]

One again Mises' ECP strikes again

[Jabskin]

not very convincing when youre examples of a failed economy is germany, singapore, south korea etc lmao