[CharlesColeman]

> Once you lose a capability it’s gone forever. That is why countries cling desperately to domestic steel, shipbuilding, arms and other industries. Once the institutional knowledge is gone and the infrastructure is gone it’s never coming back. And other countries whose interests may not align with your own have you over a barrel.

Not exactly: that's only true if you let neoliberal economists set your economic policy.

Countries like China recently gained those industrial capabilities, and the reason for that is not just because they have access to cheaper labor. More importantly, they have industrial policy that prioritizes the development of domestic industry.

Nothing fundamental prevents Western democracies (perhaps collectively) from implementing industrial policies that prioritize industrial development rather than stuff like finance in its ever more byzantine forms [1].

[1] I read somewhere that financial development is only really beneficial up to a point. Past that point, it actually does more harm than good.

[goatinaboat]

Countries like China recently gained those industrial capabilities, and the reason for that is not just because they have access to cheaper labor.

Don’t forget the psychological side. If an industry is booming then ambitious, motivated people flock to it, colleges teach courses in it, people look to build long-term careers in it. The West had that from the Industrial Revolution up until the 80s maybe. China has it now. There are still a few steelworkers and shipwrights and even miners in the UK but those industries are winding down. If we ever need a lot of warships in a hurry - which has happened not that long ago - we would struggle. The expertise is lost.