Industrial Policy

By: EconomyWatch   Date: 22 December 2010

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An industrial policy plays a major role in the development of a country’s economy. It is a well-thought plan of developing the industrial sector of a country and also to identify and develop the potential markets for the products.

Basis of US Industrial Policies
An active policy for industrial development is needed for a nation’s economic progress. United States is known as a free trading nation. However, it has implemented a number of trade, tariff and tax laws in order to protect itself from unsavory industrial practices like dumping. Dumping is a process whereby a competing economy staffs a particular country's markets with services and products that are provided at lesser than the market rate of that particular country.

Status of US Industrial Policies
Over time, industrial policies in the United States of America have been a collection of economic policies that manifested themselves later on as unified political programs in the 1980s. In the presidential campaign of 1984 industrial policies were a major issue. Democrat candidates Gary Hart, Walter Mondale and Ernst Hollings were active supporters of a national industrial policy.

US Industrial Policies in 1791
In 1791, the first industrial policy of the United States of America was handed over to Congress by Alexander Hamilton who was the Secretary of the Treasury at that time. This proposal consisted of a number of things like tariffs, tax exemptions, export restrictions, government subsidies, infrastructure improvements and a lot more. Since then, the country has developed a lot and at present it is one of the major economies.

US Industrial Policies in 1985
One of the significant moves was taken in 1985 when the country followed an aggressive industrial policy that was known as "aggressive unilateralism." According to this particular industrial policy, the country asked the trading partners to provide it with open markets for exporting several commodities and also for making investments in different sectors of the particular country. As a part of their industrial policy, the United States of America has also concentrated on developing new technologies so that the growth of the US industrial sector can be stimulated further.

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