Trump Administration: Boosting US Manufacturing Economy?
TL/DR –
Under both the Trump and Biden administrations, industrial policy has been used to strengthen domestic manufacturing industries to maintain global economic competitiveness and national security. However, these policies have met with controversy and are criticized for being protectionist, fiscally costly, and potentially damaging to economic growth and international alliances. Opinions also differ on the nature of industrial policy, with some advocating for a proactive approach to shape investment and production in strategic industries, while others argue that such interventions risk politicizing business decisions and distorting the market.
Revived American Industrial Policy Under the Biden and Trump Administrations
Recently, both the Trump and Biden administrations have resurrected the use of industrial policy as a method to fortify domestic manufacturing industries. These policies are designed to both maintain global economic competitiveness and safeguard national security. However, these approaches have not been without controversy, as they challenge decades-long economic policy consensus that opposes active national industrial policy.