The Cato Institute's "Questioning Industrial Policy" report argues that government manufacturing plans are ineffective and unnecessary. The authors contend that industrial policy requires a range of elements, including government investment in research and development, protection of intellectual property, and support for domestic industries. However, they argue that industrial policy is often ineffective because it is difficult to identify the best industries to support, and it can lead to distortions in the market and unintended consequences. Additionally, the authors argue that public choice considerations, particularly in the American system, can hinder the effectiveness of industrial policy. The report concludes that industrial policy is unlikely to be an effective way to promote economic growth and that policymakers should focus on other strategies.
