What I came here to post:
A while ago I made a point about the possibility that we were entering into an age of neo-mercantilism. Mercantilism focused on promoting trade, often with the active aid of government as opposed to government standing back and “letting the markets decide.” (It was often associated with colonialism, although I would argue that it can also be protectionist by defending against colonialism from the outside). Robert Reich has posted a recent article in which her refers to “industrial policy.” It very much has the flavor of the neo-mercantalism that I had in mind.
How Biden Did It
by Robert Reich
August 18, 2022
Introduction:
As other examples, the article also briefly mentions the CHIPS and Science Act, the Infrastructure Investment and Jobs Act Trump’s “Operation Warp Speed” that “delivered $10 billion of subsidies to Covid vaccine manufacturers,” and Obama’s Affordable Care Act. How and why this trend has developed (or rather accelerated) is also discussed.(Robert Reich via Substack) The Clean Air Act of 1970 authorized the government to regulate air pollution.
The Inflation Reduction Act, which Joe Biden just signed into law, allocates more than $300 billion to energy and climate reform, including $30 billion in subsidies for manufacturers of solar panels and components, wind turbines, inverters, and batteries for electric vehicles and the power grid.
Notice the difference?
The Inflation Reduction Act is a large and important step toward slowing or reversing climate change. It also illustrates the nation’s shift away from regulating businesses to subsidizing businesses.
Read more here: https://robertreich.substack.com/p/how-biden-did-it