Todd N. Tucker Profile picture
Mar 27, 2023 12 tweets 8 min read Read on X
What do collapses of Silicon Valley Bank and Signature mean for Biden's industrial policy?

Over at @DemJournal, @STOmarova and I have thoughts, in this new essay:

Industrial Policy Requires Public, Not Just Private, Equity.

🧵👇
democracyjournal.org/arguments/indu…
We argue that the turn to industrial policy can play a vital role in reconnecting finance to the real economy—but only if industrial policy is seen holistically as a comprehensive economic development strategy, and not just as a way to onshore the making of particular widgets.
Thus, the attaching of conditions to industrial policy loans and grants should be seen as a normal part of development lending (as it is at World Bank and elsewhere) - not a distraction. @lenorepalladino and @Isabel_Estevez_ have been really sharp on this.
rooseveltinstitute.org/publications/t…
Industrial policy is about winding desirable industries up, but also winding undesirable industries down, as @stephsterlingdc and I write here.
rooseveltinstitute.org/publications/a…
Saule and I point to the crypto industry as a good candidate for wind-down.

Its benefits were oversold, and it's blocking climate progress in key locales like the Intalco aluminum plant in WA state. Image
Biden's recent budget moves in interesting directions here, with taxes on crypto electricity usage, as @jimtankersley reported.
We conclude on the value of a "public option for private equity" in the industrial policy space, including through a National Investment Authority. This can help get around capacity constraints in existing federal agencies, and revives and improves on best practices from FDR era.
Movement towards NIA-like institutions can happen even in divided government, as the 1932-33 genesis of the Reconstruction Finance Corporation shows.
politico.com/news/magazine/…
At a time when there's more agreement on the need for speed in clean energy deployment, it's important to note finance and financial elites can be a key source of slowdown, as @joeldodge07 @michaelsjoel @lenorepalladino and I argue here.
rooseveltinstitute.org/publications/p…
To read the essay by Saule and me in full, head over to @DemJournal.
democracyjournal.org/arguments/indu…

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Todd N. Tucker

Todd N. Tucker Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @toddntucker

Mar 25
BREAKING from @AP: @Energy agency announces $6 billion to slash emissions in industrial facilities.

@JenMcDermottAP @anniesartor @SecGranholm @alizaidi46 and me on why this is game changing, and could allow the US to catch up/ lead on industrial decarb.
apnews.com/article/climat…
The mix of projects funded here is exciting, including a range of technologies to be deployed by US leader @CLE_CLF, and even projects by Sweden's SSAB.
energy.gov/oced/industria…
For more on the history of Sweden's investments in green steel, read @JonasAlgers @rooseveltinst here.
rooseveltinstitute.org/publications/l…
Read 6 tweets
Jul 27, 2023
"EVEN IF YOU’RE CONVINCED that unionized labor is sclerotic and expensive and an impediment to production, cutting them out creates the very real risk of losing the coalition necessary to sustain green industrial policy."
@ddayen responds to @ezraklein.
prospect.org/economy/2023-0…
I am sympathetic to Klein's wish to live in a society with more corporatist labor arrangements.
https://t.co/5jiumaovWrnytimes.com/2023/07/16/opi…
Image
Here's a report about the corporatist ideal, along with ideas at the margin to move towards that goal.
rooseveltinstitute.org/publications/s…
Read 21 tweets
May 28, 2023
Want government that builds super fast, without the pesky guardrails of civil society input, local government consultation, or environmental or safety permitting?

Ladies and gentlemen, Erdogan's Turkey.

Via @suzyhans @NewYorker.
newyorker.com/magazine/2023/…
The last 70 years of development economics has been technocrats & engineers slowly learning that you can't wish away politics and institutions. If your developmental strategy can't work politically and institutionally, it can't work.

See @Isabel_Estevez_.
rooseveltinstitute.org/publications/u…
That's why @ddayen's framework @TheProspect of A Liberalism That Builds Power is so useful. If you try to Either/Or your way through economic development or (countervailing) power-building, you could end up with neither.
prospect.org/economy/2023-0…
Read 10 tweets
May 12, 2023
The Biden administration just released guidance on the domestic content bonus for the Inflation Reduction Act's clean energy subsidies.

What's this all about?

Read-along thread on these latest Made-in-America incentives.

home.treasury.gov/news/press-rel…
Here are reactions from @SecYellen @SecGranholm @SecretaryPete, noting the boom in clean energy investments and production, that will now have incentives to use domestic supply chains. Image
These new incentives will run through long-standing programs of the US government: clean energy production tax credits (PTCs) and investment tax credits (ITCs). Image
Read 5 tweets
May 3, 2023
So much good in this piece by @djrothkopf:

How Bidenomics Has Finally Defeated Reaganomics.

Digs deep on work by @JakeSullivan46 @jennifermharris and others.
thedailybeast.com/how-bidenomics…
"Some old school economists who have been peddling the failed or damaging policies the administration has sought to undo decried the fact that the new approaches represented too much meddling with markets by government officials.

But of course, that is just the point."
"Finally, after many decades of deferring to the financial and corporate interests who also happen to be big political donors, a president and his team have come along to say, “enough.” It is time to make economic decisions that serve all the people and address the damage done."
Read 4 tweets
Apr 27, 2023
What is the Biden administration’s international economic agenda?

National Security Advisor Jake Sullivan (@JakeSullivan46) kicks off a @BrookingsInst talk on the New Washington Consensus. Image
Elements of new thinking:

- Markets don't always allocate capital in socially optimal ways
- Trade liberalization shouldn't be pursued for its own sake
- Privileging finance over real economy was a mistake
- Economic integration doesn't lead to alignment on other values
- Climate crisis and economic inequality change everything
- Trickle down, labor union squashing, tax cuts, deregulation, corporate concentration made things worse
- China shock wasn't adequately anticipated or addressed
- Combined result endangered democratic stability
Read 25 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(