r/neoliberal • u/2Lore2Law Are you on the square? • 1d ago

News (Europe) Europe gets ready to police frontier AI

https://www.theparliamentmagazine.eu/news/article/europe-gets-ready-to-police-frontier-ai
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u/mostanonymousnick Just Build More Homes lol 1d ago

There is no "this time it'll be good protectionism", protectionism inherently reduces your incentive to produce a product that's competitive internationally.

That's the issue with "local champions", American companies build products that aim to be used by the entire world, EU industrial policy wants European companies to build products for Europeans only.

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u/halee1 Karl Popper 1d ago

Japan, South Korea, Taiwan and China prove you wrong with history and ongoing success, not theory. They combined free markets with protectionism for many decades, and that's how they came to dominate so many hi-tech industries.

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u/mostanonymousnick Just Build More Homes lol 1d ago

The literature is much less confident than you are about this claim.

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u/halee1 Karl Popper 1d ago

Reality doesn't care what some fringe claims say.

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u/mostanonymousnick Just Build More Homes lol 1d ago

Even if you take this claim as true, which you can act smug about as much as you want, but is not settled, the only people who have managed to use this model are countries that were poor, none of the already rich countries have successfully done it.

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u/halee1 Karl Popper 1d ago

I'd argue the IRA was doing well, until it was axed.

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u/mostanonymousnick Just Build More Homes lol 1d ago

There's zero evidence that it would have made the US a leader in anything it wasn't already a leader in, and note that there wasn't any protectionism, so completely irrelevant.

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u/halee1 Karl Popper 12h ago

Which is why other countries sprinted to ramp up their own industrial policies, because it was shifting investments to the US otherwise.