Special report | State v market
“Homeland economics” will make the world poorer
Industrial policy and protectionism could endanger trade, without making Western economies safer
In 1987, industry bigwigs and civil servants noted that American semiconductor manufacturing was struggling. Japan was stealing market share and jobs, threatening national security and economic growth. In partnership with industry, the government pledged $100m ($250m in today’s money) in annual subsidies to form an r&d consortium called Sematech, to boost production.
This article appeared in the Special report section of the print edition under the headline “State v market”
From the October 7th 2023 edition
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