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Thoroughly Questioning U.S. Industrial Policy (CATO)

2021-06-18 165

Thoroughly Questioning U.S. Industrial Policy

 

 

 

 

June 17, 2021

Scott Lincicome

 

 

As discussed here repeatedly, "industrial policy" is having a(nother) big moment in the United States. Just this month, for example, the Senate passed the U.S. Innovation and Competition Act, which provides tens of billions of dollars for domestic semiconductor manufacturing and the commercialization of "key technologies"; the Biden administration released a lengthy new report urging new federal actions on “supply chain resiliency”; and lawmakers inched closer to a trillion-dollar infrastructure bill - each promising to counter China's rise and/or revitalize the U.S. economy and key industries in ways that the market supposedly can't or won’t.

 

As Huan Zhu and I explain in a new Cato working paper, however, advocates for these and other federal interventions routinely leave unanswered several important questions about U.S. industrial policy's efficacy and necessity:

 

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