This Econ 102 episode features a panel discussion on industrial policy, specifically focusing on its application in the context of US-China relations. The discussion begins with introductions and self-descriptions of the panelists, followed by an exploration of arguments for and against industrial policy, particularly concerning climate change and national defense. A key point of divergence centers on the role of Chinese industrial policy in its economic growth and the implications for US manufacturing and military preparedness. The panelists debate whether the US should prioritize broad manufacturing growth or focus on specific dual-use technologies crucial for national security, highlighting the example of drones and their reliance on Chinese-manufactured components. The discussion concludes with a nuanced perspective on the complexities of industrial policy and the need for targeted interventions rather than broad-based approaches.
