Restoring American Manufacturing

Officially, the United States has no industrial policy. But in practice, it has had one in place for decades that has shrunk America's manufacturing sector and blunted its technological edge: Tax and regulatory policies that discourage capital-intensive investment, subsidies for white-collar professionals rather than skilled workers, and shrinking support for the basic scientific research that sustains productivity. As a result, the US depends on China and other countries for strategic goods, and runs chronic deficits that have swollen our obligations to foreigners. All nations have industrial policies, and America need one that fosters industry rather than stifles it. We need an educational system that promotes skilled apprenticeships and engineering. The government also has a key role to play in suppressing harmful monopolies in Big Tech; in restoring tax and regulatory incentives to manufacturing; in training a skilled workforce; and--where national security demands it--subsidizing strategic industries to eliminate our dependence on foreign sources of critical goods. It is foolish to promote "free markets" when government policy in fact rigs the game to the detriment of industry.