Manufacturing Policy is NOT “Industrial Policy”

Robert D. Atkinson February 3, 2012
February 3, 2012

There is much debate over the state of U.S. manufacturing. Many have been arbitrarily using the term "industrial policy" to refer to a host of problems and initiatives in this critical sector. If we’ve come this far (or low) in the debate that a policy to help ALL manufacturers is industrial policy, then essentially neoclassical economists are saying that all policies need to be completely neutral between industries. This is too critical an issue for our nation’s future for it to be decided in the newspaper articles and offhand quotes from neoclassical economists.