More (Discouraging) Lessons in Industrial Policy, American Style
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The article discusses how federal regulations since the 1970s have slowed US productivity growth, with economists suggesting that without these regulations, annual growth could've been more like five percent instead of just over three percent. The article also highlights the concept of 'anti-growth safetyism' in America's regulatory approach, which has stifled innovation in sectors like nuclear power and supersonic transport. The article then examines the expansion efforts of semiconductor contract manufacturer TSMC in Japan and the United States, noting that labor relations, local partnerships, and government subsidies have contributed to different outcomes in the two regions. In Japan, TSMC has benefited from investments and cooperation from major Japanese companies, while in the US, TSMC has faced labor disputes and slow government subsidy disbursements. The article also mentions the delays caused by environmental reviews required for federal funding and the regulatory problems faced by semiconductor firms, including environmental rules, export controls, and local permit and zoning laws. The author concludes that TSMC's experience in America should temper US policymaker enthusiasm for industrial policy, as spending taxpayer money is only part of the equation and progress can be hindered by the political economy.
#IndustrialPolicy #Regulations #ProductivityGrowth #Innovation #Tsmc #LaborRelations #GovernmentSubsidies #EnvironmentalReviews #SemiconductorFirms
https://www.aei.org/economics/more-discouraging-lessons-in-industrial-policy-american-style/
American Enterprise Institute /
npub14z…4fwd3
2024-02-23 17:18:41
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2024-02-23 17:18:41Event JSON
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"content": "More (Discouraging) Lessons in Industrial Policy, American Style\n==========\n\nThe article discusses how federal regulations since the 1970s have slowed US productivity growth, with economists suggesting that without these regulations, annual growth could've been more like five percent instead of just over three percent. The article also highlights the concept of 'anti-growth safetyism' in America's regulatory approach, which has stifled innovation in sectors like nuclear power and supersonic transport. The article then examines the expansion efforts of semiconductor contract manufacturer TSMC in Japan and the United States, noting that labor relations, local partnerships, and government subsidies have contributed to different outcomes in the two regions. In Japan, TSMC has benefited from investments and cooperation from major Japanese companies, while in the US, TSMC has faced labor disputes and slow government subsidy disbursements. The article also mentions the delays caused by environmental reviews required for federal funding and the regulatory problems faced by semiconductor firms, including environmental rules, export controls, and local permit and zoning laws. The author concludes that TSMC's experience in America should temper US policymaker enthusiasm for industrial policy, as spending taxpayer money is only part of the equation and progress can be hindered by the political economy.\n\n#IndustrialPolicy #Regulations #ProductivityGrowth #Innovation #Tsmc #LaborRelations #GovernmentSubsidies #EnvironmentalReviews #SemiconductorFirms\n\nhttps://www.aei.org/economics/more-discouraging-lessons-in-industrial-policy-american-style/",
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