What industrial policy should be

Robert Reich's Blog
by Robert B. Reich

05/19/09

America now has a full-blown industrial policy. But it’s an odd one — a combination of lemon socialism and taxpayer-financed regulation. Consider GM and Chrysler. To what purpose are our taxpayer dollars being put as we bail them out? Apparently only to help them survive, even as pale shadows of their former selves. Steve Rattner, the Administration’s auto expert, explained last month that the government was ‘making an investment decision. We’re not running these auto companies. We are helping them restructure and reposition themselves for the future.’ Which raises the question: Why bother at all, if a huge portion of their employees and those of their dealers and suppliers are losing their jobs?

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Informant: Thomas L. Knapp



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