What is going on in people’s minds when they talk about industrial policy today? Why are politicians of all stripes demanding industrial policies? In this episode, EconTalk Russ Roberts welcomes back perennial favorite guest Mike Munger for a discussion.
Roberts and Munger agree that people often don’t like what a profit and loss system produces, and think they can Guidance Better with industrial policy. So what are the things that policy makers care about? When and why is industrial policy superior to markets? Both free-market enthusiasts, Roberts and Munger, delve deeper into answering these objections.
Now we would like to hear what You are Taken from this episode. Please, help us continue the conversation.
1. Munger begins by reminding us that the existence of profits in an industry does not necessarily mean that the output is of social value. It also reminds us of Schumpeter’s view of economics, which “may involve violent and painful changes.” This leads him to a provocative question: What are entitlements? Workers Who lose their jobs through no fault of their own? ” how do you want You are answer this question?
2 – Perhaps the central question in this episode is if there is he is objection to industrial policy, what he is Correct objection? Munger replied (in part) simply that impossible to solve the political problem in a democratic country. On what basis does he build this argument, and to what extent are you convinced of it?
3- Roberts brings up his recent conversation with Devon Zwegel about Argentine inflation, which Munger describes as the perfect example to illustrate his position. What does Roberts mean when he says of the Argentines, “They prefer the world of hyperinflation with all its horrors?” Who are “they” in this statement? Why is the Central Bank of Argentina political? worst of rampant inflation?
4- Roberts Munger is challenged to learn a conversation lesson. what You are Take to be a lesson? Is it that you shouldn’t try to make the world a better place? Are you just stuck with reality? Explain.