The Faulty Logic of Industrial Policy

Publication Date: October 1983

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Dwight R. Lee

Research Area: Manufacturing and industry

Type: Report


Intellectual support for the notion of an industrial policy is unraveling. Several decades of increasing political control over the economy have left a record that only the most doctrinaire interventionists attempt to defend. And the growing field in economics known as public choice has developed a formidable set of models indicating that the failure of intervention is not an aberration, but a logical consequence of political decision-making.