Abstract
What is the government’s proper role in the economy? Do free or managed markets best promote economic development? Who can best pick industrial winners and losers, the government or the private sector?
I want to unleash the magic of the marketplace!
Ronald Reagan
I do not want to see the Government pick winners and losers.
George Bush
Nothing in our economic policy is so deeply ingrained, and so little reckoned with by economists, as our tendency to wait and see if things do not improve by themselves.
John Kenneth Galbraith
I do not know much about the tariff, but I know this much, when we buy manufactured goods abroad we get the goods and the foreigner gets the money. When we buy the manufactured goods at home we get both the goods and the money.
Abraham Lincoln
The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise to the occasion. As our case is new, so we must disenthrall ourselves and then we shall save our country.
Abraham Lincoln
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Notes
Chalmers Johnson, The Industrial Policy Debate (San Francisco, Cal.: Institute of Contemporary Studies, 1984), p. 2.
Stuart Bruchey, Enterprise: The Dynamic Economy of a Free People (Cambridge, Mass.: Harvard University Press, 1990), p. 208.
B. Guy Peters, American Public Policy: Promise and Performance (Chatham, NJ: Chatham House, 1993), pp. 174–5.
Adam Smith, Wealth of Nations (New York: Dutton, 1964).
David Ricardo, The Principles of Political Economy and Taxation (London: Dent, 1973). For contemporary neoclassical economists,
see: Milton Friedman, Capitalism and Freedom (Chicago: University of Chicago Press, 1962);
Jagdish Bhagwati, Lectures: International Trade (Cambridge, Mass.: MIT Press, 1983);
Jagdish Bhagwati, Protectionism (Cambridge, Mass.: MIT Press, 1988);
Jagdish Bhagwati and Hugh Patrick (eds), Aggressive Unilateralism (Ann Arbor, Mich.: University of Michigan Press, 1990);
Jagdish Bhagwati, The World Trading System at Risk (Princeton, NJ: Princeton University Press, 1991).
Quoted in Stephen Bailey, Congress Makes a Law (New York: Columbia University Press, 1950), p. 6.
John Maynard Keynes, The General Theory of Employment, Interest, and Money (New York: Harcourt, Brace, 1936).
Robert Kuttner, “Economists Really Should Get Out More Often,” Business Week, April 24, 1989; Clyde Prestowitz, Alan Tonelson, and Robert Jerome, “The Last Gasp of GATTism,” Harvard Business Review, March-April 1991, p. 134; Laura D’Andrea Tyson, Who’s Bashing Whom? Trade Conflict in High-Technology Industries (Washington, DC: Institute for International Economics, 1992), p. 3.
John Frendreis and Raymond Tatalovich, The Modern Presidency and Economic Policy (Itasca, IL.: F. E. Peacock Press, 1994), p. 170.
Robert B. Reich, The Next American Frontier (New York: Times Books, 1983), p. 233.
Martin and Susan Tolchin, Selling our Security: The Erosion of America’s Assets (New York: Alfred A. Knopf, 1992).
For discussions of strategic trade theory, see: Paul Krugman, “New Theories of Trade among Industrial Countries,” American Economic Review, 73, May 1983; R. W. Jones (ed.), International Trade: Surveys of Theory and Policy (Amsterdam: North-Holland, 1986); Klaus Stegemann, “Policy Rivalry among Industrial States: What Can We Learn from Models of Strategic Trade Policy,” International Organization, 43: 1 (Winter 1989);
Helen V. Milner and David B. Yoffie, “Between Free Trade and Protectionism: Strategic Trade Policy and a Theory of Corporate Trade Demands,” International Organization, 43: 2 (Spring 1989), pp. 239–73.
Tyson, Who’s Bashing Whom? (Washington, DC: Institute for International Economics, 1992), p. 250.
US Congress, House Energy and Commerce Committee,” Report on HR 4360, reprinted as House Report 98–697, part 2, p. 23, quoted in Robert W. Russell, “Congress and the Proposed Industrial Policy Structures,” in Claude Barfield and William Schambra (eds), The Politics of Industrial Policy (Washington, DC: American Enterprise, 1986), pp. 319, 324.
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Nester, W.R. (1997). Introduction: The Great Debate — Free or Managed Markets?. In: American Industrial Policy. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-25568-9_1
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