Trump’s ‘industrial policy’ is just bad economics
In a recent article discussing the future of American manufacturing, the author argues that relying on subsidies and tariffs is not the solution to reviving this vital sector of the economy. Instead, true industrial strength in the United States hinges on enhancing productivity, fostering innovation, and nurturing healthy competition. The piece highlights that while government interventions like subsidies can provide short-term relief, they often fail to address the underlying issues that affect manufacturing competitiveness. For instance, the article points out that short-lived incentives may create dependency rather than encouraging sustainable growth and efficiency.
The author emphasizes that a robust manufacturing sector must be built on a foundation of innovation and technological advancement. Companies that invest in research and development are more likely to thrive in the global market, as they can offer unique products and services that meet evolving consumer demands. The article cites examples of successful American firms that prioritize innovation, illustrating how they have outpaced competitors in both productivity and market share. Moreover, the piece stresses that competition—both domestically and internationally—is essential for driving improvements in quality and efficiency. By fostering an environment where businesses can compete freely, the U.S. can stimulate a more dynamic manufacturing landscape that benefits workers and consumers alike.
Ultimately, the article concludes that policymakers should focus on creating a conducive environment for innovation and competition rather than relying on temporary measures like tariffs and subsidies. This approach not only supports long-term economic growth but also positions American manufacturing to adapt to future challenges. By investing in education, infrastructure, and technology, the U.S. can cultivate a manufacturing ecosystem that is resilient and capable of thriving in an increasingly globalized economy.
Subsidies and tariffs won’t spur a manufacturing revival. True American industrial strength rests on productivity, innovation and competition.
