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Industrial Strategy: Policy Like It's 1964
Author(s) -
Crafts Nicholas
Publication year - 2018
Publication title -
the political quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.373
H-Index - 37
eISSN - 1467-923X
pISSN - 0032-3179
DOI - 10.1111/1467-923x.12601
Subject(s) - prosperity , discretion , government (linguistics) , skepticism , industrial policy , economics , government failure , state (computer science) , economic justice , market failure , shadow (psychology) , market economy , economic system , resource (disambiguation) , law and economics , political economy , public economics , political science , microeconomics , law , economic growth , psychology , computer network , linguistics , philosophy , epistemology , algorithm , computer science , psychotherapist
The remedies provided in Prosperity and Justice: a Plan for the New Economy are less convincing than its diagnosis. It entails a substantial shift back towards selective industrial policies and resource allocation by the state rather than the market, with the ambition of changing the structure of the economy. Many economists are likely to be sceptical of some of the arguments put forward in the report. An obvious issue is the huge policy discretion to be given to government without effective constraints, and the significance of government failure is overlooked. It is a triumph of hope over experience.