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National Industrial Policy in America - Research Paper Example

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National Industrial policy in America Full Name Name of Instructor National Industrial policy in America “National industrial policy is a government-sponsored economic program in which the public and private sectors coordinate their efforts to develop new technologies and industries…
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National Industrial Policy in America
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National Industrial Policy in America

In the 1980s and 90s, industrial policies enjoyed some success in Germany and Japan. In the United States, such direct government involvement in business planning has traditionally been viewed with suspicion. However, the Advanced Technology Program, begun in 1990, has been instrumental in the research and development of promising, high-risk technologies. U.S. government subsidies can also be found in such areas as defense, energy, transportation, and home construction.” (Reich, 1991). The National Industrial Policy in US have been one of the hot and happening topics in the recent time and is subjected to mixed reactions from different corner. This paper will discuss about the cons of the Industrial policies in America and is set to provide sources supporting it. Let us take the instance of Soviet Union. Industrial policies have been used elsewhere in the world and have proved unsuccessful. The fall of the former Soviet Republic stands proof to this. An industry definitely require motivation to build up which can be achieved only when there is a competition. Also, a competitive market can be measured well unlike other market. According to (Grahame 1989), “The competitiveness of an economy can be a rather elusive concept since there are a number of ways in which it can be defined and measured”. ...
It is very clear that industry policies are created keeping in mind the need for the development and establishment of industries with in the US. The Governments undertakes and promotes such industrial policy by way of using many beneficial industrial mediums and policy implementation such as tax exemptions, lessening of tax amount, industry-favoring plans, and trade protections. Some other scenarios such as government-initiated mergers and a protection against acquisition of foreign company takeovers are also practiced. Many eminent proponents like that of Bechara have maintained that the industrial policies that are passed by the governments should be rational rather than national in order to achieve its purpose. United States needs to learn from Japan, one of the leading industrial spaces, where economy is taken care by the Ministry of International Trade and Industry (Bechara, 1985) It is not possible to develop an industry to a greater level in a region with socialistic structure. There needs to be enough free-hand to develop something novel. Only when people get some edge over a business by way of money or special status, they will strive to survive otherwise full efforts will not be taken and the industry will become stagnant. As per Ulrich (2009), “Anytime a government consciously favors some economic activities over others it is engaging in industrial policymaking”. As per DiLorenzo, the “US National Industrial Policy is leaning more towards the concept of protectionism and thereby is set to create a lot of difficulties in the international trade arena”. The high tariff charged on the American goods that are exported to the other ... Read More
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