Tuesday, February 3, 2015

When Import Substitution is Good

A correspondent objected to my endorsement of "import substitution" as a policy, but neglects to recall, as an anarchist, I have no use for policies.  He referred to the baleful results of the import substitution policies of fascist Italy.  Just so.  Policies....  in part my reply to Rv:
It fails as a government policy, because the state never picks the right winners and losers...    USA grew on import substitution, that is producing our own instead of importing what we want... but it was never a policy, it was organic.
The Soviets wiped out the 3rd best economy in the world when they moved to command economy...  After the reversion, the Russians maintained the welfare state and paid for it selling raw materials...  it ain't the sanctions, it's the prices that are causing the problems...  till now imports were cheaper than anyone could make, now anyone can make money making things in Russia...  by letting the ruble go to hell (depending upon which side you are in the trade) Russia is creating the conditions for organic import substitution.
Not surprised the fascists screwed up a policy.  They are so overrated in capitalist circles...
John
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