Question

Explain why industrial policies are controversial.

Answer 1

ANSWER:

Industrial policies are often controversial as it depends on what the government finds useful to ithe needs of the society and whether unemployment has been high or low and for this we need to take an example like the obama government was in huge favour of green industrial policies as the government investment was needed to see that the high costs that are associated with the new industry , boosting of productivity with the use of new technologies and subsequently maintain high level of competitiveness in the global economy and if there was no involvement of the government the advantage could have been lost to other countries.

The controversy here is that the money invested by the government could have been invested in some other industry and therefore critics and economists say that this leads towards a lot of corruption with lobbying groups creating a mindset within the senate of a particular industry being important then the others and also if we look from a globalised point of view , this hands an unfair advantage to the united states over other countries.