Darussalam wrote:Novus America wrote:
Improving the lives of the workers and the capitalists is not mutually exclusive...
If your goal is to make Detroit better, sweat shops do not do that.
Sure industrial policy is complicated. You have to weigh a variety of considerations and factors against each other.
But historically countries with no industrial policies fair badly when competing against countries who have effective industrial policies.
Plus the US had industrial policies the first nearly 200 years of its existence.
Some worked very well.
Since the abandonment of those policies manufacturing has struggled.
Part of that policy includes repressing unions and shooting workers on strike. Maybe we should consider re-implementing that. The negative effect of labor resistance on development is not as widely known as it should.
The only country without substantial industrial policy I can think of is Hong Kong. It didn't fare that badly. Generally what happened is that countries with industrial policy compete with other countries with industrial policy.
At any case, whatever industrial policy being designated shouldn't be made with the interest of a few low-productivity manufacturing workers in mind.
The US is another country without a substantial industrial policy.
It has not worked. But it did when we had one.
Repressing unions and violent stike breaking was not always part of the US. It did happen.
It was not good.
And we do not want to go back to that. Again cooperative labor relations (like Japan and Germany) are better than adversarial ones.
Low productivity manufacturing will not work here.
But high productivity manufacturing can (we still have a large manufacturing sector even if it has declined somewhat), and ours is one of the most productive (actually we have higher productivity than Japan).