![]() ![]() ![]() ![]() As Brian Deese - the midwife of its US resurgence and former Director of Biden’s National Economic Council - recently explained, industrial strategy takes as given that “the private market on its own, private actors operating to maximise their own utility, will end up under investing in areas of the economy that have strategic and economic significance.” Public investment and, in Sullivan’s words, “a deliberate, hands-on investment strategy” mark a new, green era of US state-led developmentalism.ĭecarbonisation at required pace and scale fundamentally depends upon the extent to which democratic planning displaces market coordination - private control - of investment. ![]() In its stead, industrial strategy has returned. In a (decidedly and perilously China-hawkish) Brookings Institution speech last month, National Security Advisor Jake Sullivan declared the end of the Washington Consensus, which had rested on the “embedded assumption” that markets invest productively and efficiently “no matter what.” Decades of economic policy informed by this delusion - per Sullivan - have eroded infrastructural and productive capacity, driven financialisation, stagnation and inequality, and failed to (even begin to) deliver decarbonisation. The Biden Administration has taken to waging rhetorical war on the primacy of market-led capital allocation. ![]()
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