The Case for Industrial Policy

Industrial policy is framed as a crucial component for nurturing a competitive economy that can thrive in a global market. The authors argue that certain industries are inherently more beneficial for economic growth and prosperity, as they yield better wages and can drive synergies across the economy. They contend that a purely free market system does not guarantee the emergence of these advantageous industries, hence active government intervention is necessary to foster their development. This perspective is highlighted by examples of successful industrial policies in protectionist countries like Japan and contemporary China, emphasizing a more strategic approach to industrial growth.