Industrial policy never made much sense for America, and now it’s not even working for China.
When President Joe Biden signed the CHIPS and Science Act a year ago, he did not talk just about how it would revive the US’s manufacturing base and enhance its national security, he also emphasized how it would help America compete with China. Back then the Chinese economy still looked unstoppable, and it was widely credited to a heavy government hand that moved labor, favored some industries and shut down others, and spent big on real estate.
Continue reading the entire piece here at Bloomberg Opinion (paywall)
___________________
Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
Photo by Chip Somodevilla/Getty Images