The Economist Magazine's Attack on Industrial Policy
Posted on 08/09/10 by Steven Schuster
The latest Economist magazine has a giant octopus on the cover with the headline, "Leviathan Inc The State goes back into business." The danger according to the Economist is industrial policy. When it comes to the USA the Economist has it wrong. The fact that the U.S has no industrial policy is exasperating the jobless recovery. Ironically, without clearly stated goals about which industries the U.S needs to concentrate on, we raise the odds that pouring federal dollars into a scattershot of companies will result in wasted money.
Several business leaders recently have warned that the U.S has lost its manufacturing edge and that the situation is getting dire. In a Businessweek cover story, a few weeks ago, entitled, How to Create an American Job, former Intel CEO Andy Grove advocated just the type of industrial policy the Economist decried. ?If what I?m suggesting sounds protectionist, so be it,? said Grove.
Click Here to read the the entire article at Benzinga.