“Homeland economics” will make the world poorer
- Industrial-policy successes are few and far between
In 1987, industry bigwigs and civil servants noted that American semiconductor manufacturing was struggling. Japan was stealing market share and jobs, threatening national security and economic growth. In partnership with industry, the government pledged $100m ($250m in today’s money) in annual subsidies to form an r&d consortium called Sematech, to boost production.