Industrial Policy vs Regulative Policy

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"Industrial policy is often trying to make sure that certain industries are thriving," he says. "It's not so much tax this and subsidize that although it does involve that sometimes" The over and the under is with reference to what is known to be correct by 'the omniscient benevolent bureaucrat'

Economist and political scientist Michael Munger of Duke University talks about industrial policy with EconTalk host Russ Roberts. Munger argues that in a democracy, the default outcome for industrial policy is crony capitalism--attempts to improve on that outcome either by appointing experts or eliminating cronyism are going to fail for political reasons. The conversation concludes with a discussion of the reliability of Munger's claim and what options are left for dissatisfied reformers.