The destructive new logic that threatens globalisation

America's abandonment of free-market rules for an aggressive industrial policy has caused a dangerous global slide towards subsidies, export controls and protectionism, leading to extra economic costs and corroding global security.

February 10, 2023 . 1:05 PM

1 min read

Since 1945 the world economy has run according to a system of rules and norms underwritten by America, bringing economic integration and boosting growth.
President Joe Biden's abandonment of free-market rules for an aggressive industrial policy has dealt it a fresh blow.
America has unleashed vast subsidies and imposed export controls, setting off a dangerous spiral into protectionism worldwide.
The extra economic costs of these policies will hurt the poor most and vast amounts of public money could go to waste.
The more economic conflict proliferates, the harder it becomes to solve problems that demand global collaboration.