Paul Krugman says that "From the perspective of the year 2010, current projections of Asian supremacy extrapolated from recent trends may well look almost as silly as 1960s-vintage forecasts of Soviet industrial supremacy"
Posted by Themetalin
Paul Krugman says that "From the perspective of the year 2010, current projections of Asian supremacy extrapolated from recent trends may well look almost as silly as 1960s-vintage forecasts of Soviet industrial supremacy"
Posted by Themetalin
5 Comments
Aged like milk
> Asian growth, like that of the Soviet Union in its high-growth era, seems to be driven by extraordinary growth in inputs like labor and capital rather than by gains in efficiency.
Am I missing something? Didn’t China start to dominate because they mastered efficiency with their supply chains and industrial clustering to deliver the cheapest product possible, complemented with their subsidies?
Is bro serious? The entire tech industry is being held up by one Taiwanese and two South Korean chipmakers. China makes the majority of all solar panels, batteries, and EVs. America might be holding up with its dominance in software and design but Europe is getting curbstomped.
weapons grade copium
Turns out that extrapolating that most countries are unwilling (Japan) or unable (99% of the rest) to pursue industrial policy is correct really often, until you get the big economy that somehow learns that 2-3% of GDP spent in industrial policy may not be *theoretically* the most efficient use of money but buys you immense power.