One argument is that uncertainty associated with a disorderly transition will make it difficult for households and businesses  Total losses were $ billion, of which losses on first-lien mortgages, home equity, and commercial real estate loans were $ billion. See https://www.federalreserve.gov/publications/files/2022-dfast-results20220623.pdf.
They may help to maintain a level playing field and to prevent a regulatory race to the bottom in policy fields that serve the whole of society. Therefore, I do not entirely follow Rodrik’s reasoning. Still, what I see as his most important message is that we should not artificially separate international economics from national or regional politics. 4.