- July 15th, 2024, 5:54 am
#465176
This topic is about the July 2024 Philosophy Book of the Month, Launchpad Republic: America's Entrepreneurial Edge and Why It Matters by Howard Wolk, John Landry
Historically, mercantilism involved state-directed economies with protectionist measures like tariffs and subsidies to enhance national power. The British Empire's mercantilist policies on its American colonies ultimately led to the American Revolution. Post-WWII, the U.S. adopted protectionist practices against Japan to rebuild its own industrial capacity.
The U.S. and China are now in a trade war echoing mercantilist policies. The U.S. has imposed tariffs, restricted technology transfers, and provided subsidies to its industries, such as in semiconductors. China responds with state subsidies, non-tariff barriers, and export controls on materials like germanium and gallium.
Philosophically, these protectionist policies raise questions about economic nationalism's ethics and practicality. While protecting domestic industries and jobs, these policies can create inefficiencies and international tensions.
Economically, the re-emergence of mercantilism can be seen in the context of great power competition. The U.S. seeks to balance free trade principles with protecting strategic interests in technology and manufacturing.
Economists like Friedrich List and Ha-Joon Chang argued that nations initially rely on protectionist policies to build industrial capacities before embracing free trade. China's rise mirrors this pattern. As the U.S. adopts similar measures against China, the global economic landscape appears to revert to a more mercantilist order.
Is the U.S.'s current trade policy towards China a return to mercantilism? What are the potential benefits and drawbacks of this approach in the modern global economy?
How do historical examples of mercantilism, such as those practiced by the British Empire and early U.S. industrial policies, inform our understanding of today's trade wars and economic nationalism?
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Historically, mercantilism involved state-directed economies with protectionist measures like tariffs and subsidies to enhance national power. The British Empire's mercantilist policies on its American colonies ultimately led to the American Revolution. Post-WWII, the U.S. adopted protectionist practices against Japan to rebuild its own industrial capacity.
The U.S. and China are now in a trade war echoing mercantilist policies. The U.S. has imposed tariffs, restricted technology transfers, and provided subsidies to its industries, such as in semiconductors. China responds with state subsidies, non-tariff barriers, and export controls on materials like germanium and gallium.
Philosophically, these protectionist policies raise questions about economic nationalism's ethics and practicality. While protecting domestic industries and jobs, these policies can create inefficiencies and international tensions.
Economically, the re-emergence of mercantilism can be seen in the context of great power competition. The U.S. seeks to balance free trade principles with protecting strategic interests in technology and manufacturing.
Economists like Friedrich List and Ha-Joon Chang argued that nations initially rely on protectionist policies to build industrial capacities before embracing free trade. China's rise mirrors this pattern. As the U.S. adopts similar measures against China, the global economic landscape appears to revert to a more mercantilist order.
Is the U.S.'s current trade policy towards China a return to mercantilism? What are the potential benefits and drawbacks of this approach in the modern global economy?
How do historical examples of mercantilism, such as those practiced by the British Empire and early U.S. industrial policies, inform our understanding of today's trade wars and economic nationalism?
“There is only one thing a philosopher can be relied upon to do, and that is to contradict other philosophers”
– William James
– William James
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