Matt Yglesias is great here. Seriously? What possible argument can there be for manufacturing subsidies?
It’s not an infant industry. It’s not clear that we have huge returns to capital in manufacturing that are being ignored by the private markets. And if we do, lowering the corporate tax rate and broadening the base is the right solution–why would we favor manufacturing jobs over other jobs? It just means less jobs.
Filed under: Uncategorized, economics, industrial policy, infant industry, jobs, manufacturing, Obama, Slate, taxes
Think Economically 