http://www.swtotd.blogspot.com
“A modern American industrial strategy identifies specific sectors that are foundational to economic growth, strategic from a national security perspective, and where private industry on its own isn’t poised to make the investments needed to secure our national ambitions.”Jake Sullivan, National Security Adviser Brookings Institution, April 27, 2023
The presumption in Jake Sullivan’s words, quoted above, are astounding – that there is a, yet-to-be-named, “modern American strategy,” which identifies “specific,” but unstated, “sectors that are foundational to economic growth,” which are “strategic from a national security perspective.” But since the private sector has neither the means nor the foresight to “secure our national ambitions” (whatever they are), then it must be left to the public sector to decide how much and where to invest, decisions prior administrations from both parties have left to markets. Sullivan refers to this as Bidenomics. In reality it is central planning.
Greg Ip, in last weekend’s edition of The Wall Street Journal, wrote of Mr. Sullivan’s speech: “Sullivan’s target was what some in the policy world call neoliberalism: the free trade, laissez faire economic priorities shared by Republican and Democratic administrations for decades.” “Executive policy-making,” wrote Christopher DeMuth, a distinguished fellow at the Hudson Institute, in the same issue, “has an ideological basis – that of ‘expertise,’ which holds that modern life demands government by expert administrators in place of amateur legislators.” When did Karl Marx replace Adam Smith?
Certainly, there have been times when government has had to take the lead – in times of war, in building the interstate highway system, DARPA, NASA, etc. But the concept that a state-mandated industrial policy is the wave of the future is to believe that Russia, China, North Korea, Cuba, Venezuela, etc. have brought to their people greater efficiencies, higher living standards, a cleaner environment, and greater financial opportunity and equality than the democracy and free market capitalism of the United States, and the West.
