Industrial Policy: Hearing Before the Joint Economic Committee, Congress of the United States, Ninety-seventh Congress, Second Session, May 18, 1982

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U.S. Government Printing Office, 1982 - 222 pages
 

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Page 193 - ... approach is wholly non-targeted. It sees no need to direct, aim, or guide the public resources released to the private sector in any particular way. Indeed, freeing them to go wherever the market will take them is the kernel of the approach. Targeted: Industrial Policy At the other end of the spectrum is the notion that, far from being reduced, the polity's role should be intensified. Here the diagnosis is that, compared to other highly successful economies, especially West Germany and above...
Page 194 - ... but as the term tends to raise fears of socialism, most of its advocates avoid the label. Instead, the term "industrial policy" is in favor. It is quite appropriate, because the assumption is that the unit at which the levers of policy are to take hold is not "the economy," or a major sector of it, but the specific industry. Also, "industrial policy" is the label used for such detailed government planning and direction of corporate efforts in other countries.
Page 195 - ... example, if we cut government revenues by $50 billion through across-theboard cuts in personal income tax, the funds released might well be used mainly to spur private demand for consumer goods and services; little rejuvenation of productive capacity might occur. On the other hand, if those resources are guided to the productive sectors of the economy — not to specific industries — reindustrialization is much more likely to follow. Thus, if tax revenues are "lost...
Page 180 - Neither economic performance in the United States prior to the New Deal nor contemporary economic performance in the most successful industrial economies, such as Japan. Sweden, or Germany, supports this view. Markets failed to guarantee growth and resource utilization during the Great Depression: and strategic government intervention and comprehensive social welfare programs, rather than free markets, have been the engines of economic success throughout the advanced industrial world. Government...
Page 195 - Will our polity, in which the government tends to be weak compared to business, labor, and local communities, especially when these work together for their Chrysler, be able to channel resources to those who merit them by some rational analysis, rather than to those who have political clout? (3) Is the country — both voters and leaders — willing to accept more politicization, less reliance on the marketplace?
Page 194 - ... most of what goes under the name of industrial policy in other countries is alien, un-American; not in the McCarthyite sense, but in a technical sociological sense: not suitable for the American context. Aside from being alien, industrial policy prompts other objections from critics: (1) we do not have the analytic capacity to determine correctly who will be a winner, who a loser. Our record suggests that we would misidentify industries and sink vast amounts of public resources in tomorrow's...
Page 192 - ... the polity as much as possible, by releasing resources to the private sector, deregulating, and letting the market do its wondrous things. The most radical of the lot, such as Professor Arthur Laffer, Congressman Jack Kemp, and Senator William Roth, hold that the revenue lost via monumental tax cuts will be restored by the higher tax yield of a more productive economy. Other laissez-faire conservatives, say Milton Friedman, are satisfied to cut back government expenditures and taxation drastically,...
Page 193 - ... that, compared to other highly successful economies, especially West Germany and above all Japan, American institutions provide insufficient guidance and support for the private economy. The market, it is implied or openly stated, has shown its inability to invest enough in new plant and equipment, in innovative and competitive capacity. Executives have grown risk-shy and dividend-happy. Steel mills, auto plants, the textile and rubber industries are crumbling. Computers face a government-orchestrated...
Page 106 - Assistant Secretary for Planning and Evaluation at the Department of Health and Human Services, resigned from the Clinton Administration in protest over the signing of the new welfare law. In an article entitled "The Worst Thing Bill Clinton Has Done," Edelman dubbed the new law "awful" policy that would do "serious injury to American children.
Page 11 - Directors to be comprised of 9 members, the appointment of which shall be allocated pro rata among the Speaker of the House, the Majority Leader of the Senate and the President.

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