Trade

Whether it’s being sold under the banner of a “New Paradigm”, “new centrism”, “neopopulism”, or a “Future Made in Australia”, industrial policy will lead to less growth, insipid labour productivity, and a much poorer and more vulnerable Australia.

Biden’s new China tariffs are driven by politics, not economics or national security. But protectionism tends to beget more protectionism, risking trade wars that could cause significant damage to the global economy.

Biden’s tariffs are a glimpse into our Future Made in Australia; the Americans are an innovative bunch (no wonder they’re so productive); who benefits from the welfare state; the post-pandemic war on prices; and how the Jevons Paradox is shaping artificial intelligence.