Second, the United States has instituted industrial policies in the past out of unwarranted fears of other countries’ industrial policies. Conservatives — who take pride in their respect for history — should learn about the failed United States industrial policies of the 1980s, which were responses to the Japanese government’s attempt to dominate key consumer electronics technologies. These efforts worked neither in Japan nor in the United States. The past has taught us that industrial policies fail often because they favor existing industries that are well connected politically at the expense of would-be entrepreneurs and start-ups offering more innovative solutions. Also, Mr. Rubio’s report errs in concluding that because manufacturing wages are high, policymakers should work to increase employment in manufacturing.

Source: New York Times March 06, 2019 00:00 UTC