The chief problem with industrial policy, as I noted in my last post, is less economic than political: with the government handing out investment money, there is a big danger that it will be allocated not on the basis of likely economic returns, but as a form of patronage by politicians.
Building Infrastructure the American Way
The chief problem with industrial policy, as I noted in my last post, is less economic than political: with the government handing out investment money, there is a big danger that it will be allocated not on the basis of likely economic returns, but as a form of patronage by politicians.