Government Industrial Policies Yield Mixed Results; Current Made in America Push Faces Uphill Battle
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Government industrial policies have a mixed track record, with some successes like DARPA but many failures like Sematech. Overall the economic costs tend to be high.
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China's recent "Made in China" policy has helped Chinese firms but not clearly benefited the overall economy. Productivity may have fallen under Xi Jinping.
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Current government efforts like "Made in America" have not yet boosted manufacturing output or innovation. Early subsidy recipients are already asking for more money.
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Watchdogs are questioning whether new industrial policies are securing value for money. Huge sums may be misdirected to large firms.
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It's debatable whether slower growth is acceptable if policies reduce inequality. But the progressive impact of homeland economics remains overstated.