Economic selfreliance is a dangerous delusion

Economic selfreliance is a dangerous delusion

Governments and companies worldwide are prioritizing reducing supply chains and promoting domestic production post-COVID and Ukraine war. President Biden aims to boost U.S. economic self-reliance through new legislation supporting domestic manufacturing. The concept of “friend-shoring” is also gaining traction. Subscription to quality journalism is vital in the current information landscape.

Source: Link

FAQ: Economic Self-Reliance is a Dangerous Delusion - The Japan Times

FAQ: Economic Self-Reliance is a Dangerous Delusion - The Japan Times

1. What does the phrase "economic self-reliance" refer to?

- Economic self-reliance refers to the approach where a country prioritizes shortening supply chains, rebuilding domestic production capacity, and diversifying sources to reduce dependence on foreign imports and trade.

2. Why is economic self-reliance considered by some as a dangerous delusion?

- Some experts, including those writing for The Japan Times, argue that economic self-reliance may lead to systemic instability and increased international tensions. There is a belief that protectionist policies can result in higher costs for consumers and may trigger retaliatory trade policies.

3. Are countries pushing for economic self-reliance after the COVID-19 pandemic?

- Yes, in the aftermath of the pandemic, there has been a global trend where countries are looking to shorten supply chains and increase domestic production to safeguard against international disruptions.

4. What are the risks associated with pursuing economic self-reliance?

- Risks include potential trade wars, increased global instability, higher production costs, and the possibility of inefficient resource allocation due to reduced global cooperation.

5. Are there any benefits to economic self-reliance?

- While some may argue that self-reliance can protect a nation's economic interests during global disruptions, the consensus in the articles suggests that the drawbacks, such as higher costs and instability, might outweigh the benefits.

6. What is the opinion presented in The Japan Times regarding economic self-reliance?

- The Japan Times presents the view that striving for economic self-reliance is not a sustainable global strategy and that such an approach may do more harm than good by fueling international tensions and systemic economic issues.

7. How does the concept of self-reliance affect group cooperation according to studies?

- According to a study mentioned in the search results from NCBI, self-reliance can crowd out group cooperation, which is essential for establishing public goods, protecting against outside dangers, and disseminating information efficiently.

8. What position does the United States hold in the debate over economic self-reliance?

- The United States has been using trade as a strategic tool against competitors such as China and has pursued an exclusionary industrial policy, which has raised discussions on the efficacy and consequences of such strategies.