Though US President Joe Biden’s massive industrial-subsidy programs have fueled a construction boom, they have failed to revive US manufacturing output – a goal that Donald Trump’s tariff-based approach will also fail to achieve. In the US and the EU alike, resisting the secular trend of “de-manufacturing” may well be a losing battle.
shows that Joe Biden’s subsidies failed to boost industrial production – and Donald Trump’s tariffs will, too.
Rather than use “normal” policy tools, such as interest rates and fiscal spending, to address low consumption or deflationary pressures, Chinese policymakers should be pursuing fundamental reforms that address the issues underlying these problems. The key is to allow for a more market-driven allocation of land, money, and labor.
concludes that, with fundamental reforms, another wave of rapid economic growth is possible.