Subsidies and protection for manufacturing will harm the world economy

POLITICIANS have always been captivated by manufacturing, but rarely has their desire to make things been as zealous as it is today.

In the West, they are doling out enormous subsidies to manufacturers, especially chipmakers and those behind green technologies, such as batteries. They say they are fighting climate change, enhancing national security and correcting for four decades of globalisation during which workers suffered and growth slowed.

In the emerging world, governments hope that subsidies can secure a foothold in supply chains as worried Westerners move production out of China.