Industrial Policy & Economic Security Conference: Session 3

This podcast features an interview with Brian Deese, who reflects on his experiences in government implementing industrial policy, particularly in the automotive and chip industries. He discusses the challenges of prioritizing multiple, sometimes conflicting, goals such as energy transition, national security, and economic development. Deese revisits the auto bailout of 2009, highlighting the importance of clearly defined objectives, and contrasts it with the Biden administration's approach, which he admits sometimes suffered from "everything bagel liberalism," trying to achieve too many goals simultaneously. He also addresses the balance between government intervention and market dynamics, the role of competition, and the effectiveness of different policy tools like tax credits and direct funding, using examples such as the electric vehicle tax credit and critical minerals initiatives. The conversation touches on the political considerations of industrial policy, including the linkage between domestic investments and international economic leadership, and concludes with a discussion on the government taking equity stakes in companies.