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Economy
See other Economy Articles

Title: Economic History Tells Us Something Important About Industrial Policy
Source: American Enterprise Institute
URL Source: https://www.aei.org/economics/econo ... rtant-about-industrial-policy/
Published: Dec 7, 2022
Author: James Pethokoukis
Post Date: 2022-12-07 20:05:27 by Charles_Byrd
Keywords: None
Views: 117

The headline of a recent Washington Post op-ed, “Biden is reviving a lost Democratic industrial policy playbook,” suggests an important question: Why was that playbook abandoned? Writer Henry M. J. Tonks spends considerable time explaining why a group of “young, highly credentialed politicos enamored with the high-tech economy of the future” initially created such a playbook back in the 1980s. After the volatile, stagflationary 1970s, these “Atari Democrats” were looking for a big, new economic idea to propel the party and to counter the “Reaganite, free- market revivalist ascendancy,” as Tonks puts it. They thought they found their answer in the booming Japanese economy, success that many at the time credited to its government-led economic model of central planning, subsidies, and trade protectionism. They pushed Washington to do its own strategic planning and intentional subsidizing of emerging high-tech sectors. What happened to the Atari Democrats and industrial policy ideas?

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