Let’s Not Participate In a TRUE Race to the Bottom
()
Here’s a letter to someone who disagrees with opposition that I expressed, (in a letter) in yesterday’s Wall Street Journal, to industrial policy.
Mr. M__:
Thanks for your e-mail in response to my letter in yesterday’s Wall Street Journal in which I express opposition to industrial policy.
You write:
We can afford to stick to the free market only if other countries do too, but not when places like China are heavy into practicing industrial policy…. We can’t afford not to retaliate in kind.
With respect, I disagree.
The economics of the matter are plain. If industrial policy is an effective means of improving the performance of an economy, our government should use it to improve the U.S. economy regardless of the policies pursued by other governments. But if industrial policy is an effective means of worsening the performance of an economy, our government should avoid using it regardless of the policies pursued by other governments.
Politicians and bureaucrats either are or aren’t able to outperform the free market at spurring economically beneficial innovation and allocating resources efficiently. Such an ability is not miraculously turned on and off by the policies pursued by other governments.
When foreign governments abuse their countries’ economies with industrial policy we Americans should pity the harmed citizens of those foreign lands. We should not, however, respond by abusing our own economy with industrial policy and thereby turning Americans into similar objects of pity.
Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA 22030
]]>
Source: https://cafehayek.com/2022/08/lets-not-participate-in-a-true-race-to-the-bottom.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).