Warnings from history for a new era of industrial policy
The danger is not that America’s reshoring push fails—but that it succeeds
“Free trade is almost dead,” declared Morris Chang, the founder of tsmc, dampening the mood at an event in December to celebrate a milestone in the building of the Taiwanese chipmaker’s new fab in Arizona. The remark was not out of character. In July he called America’s effort to bring chipmaking home an “exercise in futility”. Until recently, rich-world governments mostly shared his judgment. But worries about supply-chain security in a fraught world are prompting experimentation. History provides some reasons for optimism—as well as many for concern.
This article appeared in the Finance & economics section of the print edition under the headline “Picking losers”
Finance & economics January 14th 2023
From the January 14th 2023 edition
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Germany’s economy goes from bad to worse
Things may look brighter next year, but the relief will be short-lived
An economics Nobel for work on why nations succeed and fail
Daron Acemoglu, Simon Johnson and James Robinson tackled the most important question of all
Why investors should still avoid Chinese stocks
The debate about “uninvestibility” obscures something important
China’s property crisis claims more victims: companies
Unsold homes are contributing to a balance-sheet recession
Europe’s green trade restrictions are infuriating poor countries
Only the poorest can expect help to cushion the blow
How America learned to love tariffs
Protectionism hasn’t been this respectable for decades