No Policy is Good Policy: A Radical Proposal for U.S. Industrial Policy

23 Pages Posted: 29 Aug 1998

See all articles by Kristi Spissinger

Kristi Spissinger

College of the Holy Cross - Department of Economics

Walter E. Block

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business

Robert W. McGee

Fayetteville State University - Department of Accounting

Date Written: March 1998

Abstract

There are three main paradigms that are the basis for the industrial policies throughout the world: institutionalism, Marxism, and free-enterprise. Of the three, two have been widely and intensively implemented and both of them have dismally failed. Institutionalism and Marxism either are, or have been, attempted to the fullest degree in the United States and abroad. Both have left nations struggling to find something better. The answer to this troublesome question is simple. No industrial policy is the best industrial policy. The classical liberals and libertarians have been arguing this since the days of Adam Smith, yet for the most part have been repeatedly dismissed. Critics have claimed their theories were unrealistic, and few nations have ever actually tried a policy close to laissez faire capitalism, at least in our century. If they had, there would not still be the quest for a better policy. This paper takes the position that it is time to learn from the previous mistakes and failures of government intervention. It is time to abolish industrial policy.

JEL Classification: K2, L5

Suggested Citation

Spissinger, Kristi and Block, Walter E. and McGee, Robert W., No Policy is Good Policy: A Radical Proposal for U.S. Industrial Policy (March 1998). Available at SSRN: https://ssrn.com/abstract=115075 or http://dx.doi.org/10.2139/ssrn.115075

Kristi Spissinger

College of the Holy Cross - Department of Economics

1 College Street
Worcester, MA 01610-2395
United States

Walter E. Block (Contact Author)

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business ( email )

6363 St. Charles Avenue
Box 15, Miller 321
New Orleans, LA 70118
United States
(504) 864-7944 (Phone)
(504) 864-7970 (Fax)

Robert W. McGee

Fayetteville State University - Department of Accounting ( email )

Fayetteville, NC 28301
United States

HOME PAGE: http://robertwmcgee.com

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