In the 1980s and 1990s, a debate raged in the US on the question of industrial policy; the proponents arguing that the government should pick sectors and “winners” and the opponents arguing that government bureaucrats were not in a position to do so and that the market should be allowed to take its course.
One of the most effective methods of policy argumentation in the US is “we are falling behind [fill in the blank].” Those days, the country that was forging ahead of the US was Japan, in most cases (e.g., Fifth Generation Computing, High Definition Television) . The argument was that the strong government bureaucracy in Japan (in particular, MITI–the Ministry of International Trade and Industry) was picking winners, while the potential winners in…
Recent Comments