Industrial Policy Returns from the Grave
One of the worst responses by officials to the financial crisis and deep recession has been to revive “industrial policy.” Governments' use of subsidies, mandates, regulation, and capital investment to pick industrial winners and losers failed in the 1970's and 1980's, and it is just as bad an idea today.
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PALO ALTO – One of the worst responses by officials to the financial crisis and deep recession has been to revive “industrial policy.” Once again, governments are using subsidies, mandates, regulation, and capital investment to pick industrial winners and losers, rather than using a broad, even-handed approach.