Governmental policy drives industry in vital ways that affect citizens’ everyday lives. Imagine a world where presidential priorities had never created the Works Progress Administration or Interstate Highway System. While many will not see the immediate impact, we cannot overstate the importance of industrial policy making.
Building National Infrastructure
Countries worldwide need government oversight and financial stimulation to provide a high-quality and sustainable infrastructure. From country roads to electrical grids, the national infrastructure always needs rebuilding and expanding.
President Biden’s infrastructure plan is a great example of industrial policy making at the top of the United States government. Infrastructural health is one of the primary indications of a functional and financially stable country. Infrastructure is one of the largest budget items in developing nations because they see the centrality of functional transportation and utilities.
The Role of Party Politics
Like all national decisions involving millions of dollars, various political parties have something to say about industrial policy. An economically liberal approach will vary significantly from a conservative one. Yet, it is vital to know that both parties vie for control over industrial policy, especially when it comes to federal versus private sector involvement.
Building Back Better
One of the cornerstone principles of development, infrastructural or otherwise, is the commitment to building back better. You may know this idea from adages like, “Leave it better than you found it.” When it comes to industrial policy, those in charge have the opportunity to put this idea into practice. Instead of leaving broken bridges and downed power lines, government-driven policies can build stronger bridges and more integrated power lines to reduce the likelihood of further disrepair.
Understanding the importance of industrial policy making can help those on both sides of the political aisle make informed decisions about the prospect of infrastructural growth and budgetary implementation. Though the liberal perspective on these issues will continue to develop over time and economic liberalism will determine policy execution, it is vital to see the broader scope of the issues at hand. This way, those with progressive agendas can provide balanced perspectives as we advocate for a liberalistic vision of American industry.