just one bit of the excellent economics writing in this piece from @jwmason, on arguments about the futility of industrial policy due to overcapacity narrowly, and how politically we make progress in economics policy more broadly. https://jwmason.org/slackwire/at-jacobin-yes-we-should-support-industrial-policy-and-the-green-new-deal/ ht @ryanlcooper
“There's an important truth to the idea that, in a world of long-lived specialized capital goods and constant or falling marginal costs, there is no tendency for market prices to reflect costs of produc-tion. Too much competition, and firms will sell at prices that don't recoup their fixed costs, and drive each other to bankruptcy. Too little competi-tion, and firms will recover their full costs and then some, while limiting socially useful output. No market process ensures that competition ends up at the goldilocks level in the middle.”