The United States is an example of the advantages of the market economy

Zu The numerous errors of judgment made by the Russian president before the start of the war include the assumption that the West is weak. This seems all the more false when we look at the United States. The American economist Alex Tabarrok referred to an interesting historical tradition in this context, as forecasting the economic decline of the United States has a long tradition. In the end, however, market economics won out over forced industrial policy.

For the first 30 years after World War II, not only Moscow propagandists but also respected American economists predicted the ability of the Soviet Union to catch up with America. In fact, the Soviet Union, with its command economy, proved incapable of generating lasting prosperity. She separated. After that, Russia never managed to embark on a growth trajectory driven more by value creation than by commodity exports.

Around 1980, Japan was seen as the main competitor in the race for economic dominance. A protectionist-influenced industrial policy promoted by the legendary Ministry of International Trade and Industry (Miti) led to such impressive export successes that Japan’s auto industry temporarily voluntarily reduced its car exports to the states. United to appease American anger. This era belongs to the past. Japan is still a respectable industrial country, but no longer an intimidating giant.

For several years, Chinese state capitalism has been seen as the great challenge to American supremacy. But anyone watching Beijing’s wildly unsupervised behavior during the pandemic may have doubts about whether China really has the supposed strength. Today there are voices in German business that see the United States as the economic winner of the war in Eastern Europe. It is important that Europe learns the right lesson from this. It cannot bear to rely more and more on industrial policy.

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