Industrial Policy

DT Cochrane joins the livestream this week to talk about Industrial Policy. Industrial policy is government policy to encourage the development and growth of all or part of the economy in pursuit of some public goal. Historically, it has often focused on the manufacturing sector, militarily important sectors, or on fostering an advantage in new technologies.

[Alex_Plante]

When I was a teenager (this was over 40 years ago), I found a book, that was already rather old, describing Canada's industrial policy during the Second World War. We doubled the size of our economy in 4 years, and by 1944 military spending was 50% of the economy (up from nearly 0 % 5 years earlier). Canada became a massive arms workshop, building everything from planes, tanks, guns, ships, ammunition and so on. Much of this effort was carried out by the private sector with considerable aid and planning from the Federal government, but if a critical industry did not exist, the government would create it from scratch by creating a crown corporation. One thing that impressed me is Canada did not have an optics industry, so the government created an Optics company, which was probably called the Dominion Optics Company or Canadian National Optics Company (I cannot find any reference to in on the internet) to make gun scopes and other optics required by the arms industry.

After the war, all this was dismantled, and I remember from the introduction that the authors wrote the book because they felt Canadians would forget about this extraordinary history of Industrial policy experienced by Canada during the Second World War.

Unfortunately, 80 years later, almost every has forgotten about this experience. Unfortunately I do not have the book any more. Canada's post-war de-industrialization policy was probably even more surprising to me than the war-time industrial policy.

[detectiveofmoneypolitics]

Detective of Money Politics is following this very informative content cheers from VK3GFS and 73s from Frank Melbourne Australia

[Lyra]

The US has managed to build roughly 350 miles of high speed rail throughout its entire history. China has over 20, 000 miles, all built during the past quarter century. So how does the neoliberal market system expect ever to compete successfully with China and other Asian nations given its almost exclusively private, profit-driven system?

[larryjsummers]

DT Cochrane is always a great guest for this show😉

[longnewton]

Without question, industrial policy must focus on reducing (fast) high carbon intensity activities and growing sustainable alternatives.

[garrenosborne]

Market "Fundamentalism", not fun for humanity - but definately "Mental"

[randyosborne]

Free Market is the answer. The government will take donor monies, campaign contributions, then pick winners and losers.

[TheNemesisIX]

@1:28: These critique against right wing populism/socialism seem more valid when made against captured politicians or against richt wing ideologues. I think the 'Ideologues' part seem key to make his point.
@1:35: These sortition's seem to have the danger of capturing populistic decisions, only to have marketing influence them and ignore them when the wrong result is reached. I guess its a good choice for a pilot or to create a dialogue.
@1:45: Here in the Netherlands Labor-Unions seem to be all captured, the education Labor-Union seems very captured as well.

[tonywilson]

HOME WORK FOR NEXT WEEK
These are all on YouTube.
The first 2 go straight to Steve's comments on the water supply in Britain and Britain's water supply issue is almost identical to Australia's Energy issues and for the same reason.
"Why England's Chalk Streams are Dying" posted 4 Jul 2024 by John Horsfall
"Economist explains how to fix Britain - Torsten Bell MP" posted 20 Sept 2024 Channel 4 news

The really interesting stuff is at 20:47.

"The Problem with Wind Energy" 30 Jun 2024 posted by Real Engineering

"Enriching Uranium Understanding" 16 Nov 2023 posted by Decouple Media.
Warning - Decouple is hosted by Dr. Chris Keefer, a practicing emergency physician in Toronto, who's pro-nuclear power. He has some very good people on like James Krellenstein who's in the video above. James has been on the podcast several times and I found all of them very informative. Unfortunately Chris also has on some genuine ratbags, including a couple of Australians who I wont go into here.

And for some fun
YouTube - "How To Make Math Entertaining For Everyone. Don McMillan" posted 26 Jul 2024 on Dry Bar Comedy

[IshrakHossain-rtis]

It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Brian! Imagine i invested $50, 000 and received $190, 500 after 14 days

[davidcollins]

We need a discussion on industrial policy as it relates to the depletion of the earth’s resources and the unfortunate consequence of human over consumption and human overshoot. The negative feedbacks are obvious - extinction of other fellow earthlings, destruction of the biosphere resulting in a loss of habitat. We are faced with two paths: 1) Increased death rate or 2) a slowing birth rate. During this phase, I would like to see humans have both an equal opportunity and an equal chance of results. But alas, we know the answer to this wish. Ain’t gonna happen

[gregoryclifford]

It all begs the question: What would your team have done differently, having detected in your models the seeds of destruction or a house of cards waiting to fall? For instance, had you been in the FED or Treasury or cabinet positions, and when your system dynamics had exposed the danger of public debt at the tipping-point just prior to the cascading events of the latest financial crisis, what administrative inputs would have healed it easily? Forget legislation, that's for hindsight in a changed world, but in the driver's seat, what new or old inputs to your double-entry economic spreadsheet would have prevented the disaster?

[bleore]

Line of the livestream by DT begins at 1:14:13

[satyasarma]

Are we practicing economics or theology?

[raysimpson]

What about ESOP & CSOP & Co-Op ownership?

[jamescartledge]

Certification of residential and commercial buildings and structures would be at least a subsection of an industry that will be more effective under complete government control.
In Australia, we have the option of either private or public building certification.
The obvious problem is private certifier is a business like any other and builders expect them to issue certification regardless of non-compliant works....
If the certifier was employed by government cannot be influenced by the builder, and will only issue certification on complaint works

[raysimpson]

Political model based on predator and prey.
The book "a prosperous way down".

[gregoryclifford]

When the bell rings, it's a different world out on the playground. Playground rules are different than classroom rules, and in the real world of business/government relations, campaign contributions are the formula for Industrial Policy. Isn't that what the Supreme Court of the United States confirmed in Citizens United? I don't think Chief Justice Roberts is in your dynamics, is he?

[Amaglabiddiaghloughbuite]

the level of investment made by water companies is set by the regulator, it's a faliure of government.

[gregoryclifford]

Long-term/short-term capital gains are easy to understand and favor by tax policy for stability sake, but how does that principle apply to corporations, especially the corporate raiders who leveraged, looted, and left with their plunder? Government is left with the smoking hulk, workers must be retrained or compensated for the sake of families left in shambles, a bailout call, and unwary shareholders left holding the bag. DARPA is remarkable at instilling a need for real development with risks, but industry has not known any means of self-defense against pirates in thousand dollar suits. Your systems dynamics economic modeling programs can grab those curs by the scruff of the neck and pitch them into the hoosegow? Just when and where will that happen, in The Second Coming?