What Britain should learn from Biden’s IRA plan

The UK needs to adopt a more strategic approach to economic policy and not simply react impulsively to global developments, such as Joe Biden\’s Inflation Reduction Act and its green subsidies. To respond effectively, the UK must first accept the reality of the situation, which is that the US is pursuing a powerful combination of national security and political goals. In response, the UK should focus on its own industrial policy related to achieving net-zero emissions and support green growth industries with active government intervention. This includes prioritising green technologies that have smaller economies of scale, where energy security is an issue, or where the UK has a comparative advantage. The UK should also consider the benefits of allowing other countries to subsidise production in areas where it can result in cheaper prices or more resilient supply chains. Finally, the UK\’s economic strategy should look beyond net-zero and focus on the country\’s long-established advantages, such as services, beverages, aerospace, and culture. The US approach serves as a wider lesson for the UK and shows what strategic economic thinking looks like.

>Source link>

>>Join our Facebook Group be part of community. <<

Leave a Reply

Your email address will not be published. Required fields are marked *