I'm a skeptic of a lot (though not all) government planning - particularly at the local level with land use. That said, this article points out something essential with industrial policy - that it requires planning. https://americancompass.org/essays/planning-for-when-the-market-cannot/

The key is to delineate where planning is appropriate (particularly industries that intrinsically require scale), and where it isn't. Planning is essential for manufacturing cars. There's no mom and pop car manufacturers. That shouldn't be extended to retail.

The article also highlights the limits of Hayek's Knowledge Problem. Namely, the intrinsically political process of production in the industrial age. Public policy's role is essential to understand that.

On the East Asian export planning models, two key points need to be made. One is the politically driven access the producers were given to the American consumer market. Japanese cars didn't show up in America by accident. Japanese planners alone couldn't make that happen either.

The second is the feedback loops that the access to American consumers engendered. There were plans that required centralized knowledge that succeed, but I am sure there were also plans that failed. Survivorship bias

Having feedback loops is absolutely key for planning to succeed, in all parts of the process. Otherwise, you end up with another Saudi Aramco IPO valuation sham.

Another thought to expand on this thread.

The planned-export model has a base assumption that don’t translate to the US. Namely, the exogenous pressures that impact the US’s ability to produce goods.

Exporting countries have the ability to manipulate their currency in relation to the US dollar. This both cheapens their exports and suppresses local demand for tradable goods.

The US’s role as the world’s reserve currency doesn’t allow for this as easily. High demand for the US dollar/assets pushes up its currency’s price.

The exorbitant privilege is also an exorbitant burden.

Expensive currency makes it difficult to compete solely on price on global markets. Most US dollars abroad aren’t looking to buy American goods.

They want to buy assets in dollars.

Where are they mainly located?

In financial markets.

Demand for dollars can bring down the cost of borrowing for the federal government. It also reinforces the power of the financial system, at the expense of the real economy.

Exogenous pressures reinforce the feedback loop that values finance over production.