Industrial Policy

Industrial policy is the set of government actions meant to support particular industries, such as manufacturing, through subsidies, tax breaks, loans, trade rules, and sometimes ownership stakes. Supporters argue that it protects national security and jobs. Critics argue that governments pick winners poorly. Congress, the Commerce Department, and other agencies carry out these policies.

People usually bring questions about how the government supports American manufacturing, what labels such as Made in America mean, and when taxpayers should own part of a company. They also ask why manufacturing jobs have declined, how trade agreements and foreign investment fit in, and how federal programs help small manufacturers.