America Beyond 2001 | America Does Not Need an Industrial Policy

President Clinton, stressing the need to “copy our competitors,” is devising an expansive U.S. industrial policy. His main model is Japan. Unfortunately, the president doesn’t seem to understand the true strengths of the Japanese economy—or its underreported weaknesses. The fact is, Japanese industrial policy offers very little to envy or copy.

The Popular Fable of MITI
In popular fable, the grand intelligence behind Japan’s economic miracle has been the Ministry of International Trade and Industry. In the aftermath of World War II, MITI bureaucrats used...

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