Industrial Policy’s Deceptive New Clothes
https://www.project-syndicate.org/commentary/industrial-policy-subsidies-tariffs-regulations-will-add-costs-harm-innovation-by-raghuram-g-rajan-2024-09
If the new "industrial strategy" is offering ideas for better public governance, it is useful. But it becomes positively dangerous when it turns to the private sector, where state interventions inevitably undermine competition, disrupt price signals, and dampen the motivation to innovate.
https://www.project-syndicate.org/commentary/industrial-policy-subsidies-tariffs-regulations-will-add-costs-harm-innovation-by-raghuram-g-rajan-2024-09
If the new "industrial strategy" is offering ideas for better public governance, it is useful. But it becomes positively dangerous when it turns to the private sector, where state interventions inevitably undermine competition, disrupt price signals, and dampen the motivation to innovate.