Government Intervened in Big Business to Boost US Manufacturing Competitiveness

The United States is a global leader in manufacturing, accounting for 18% of the world's total output despite having only 4% of the global population. However, concerns about China's rapid rise as a major economic power have led some to call for government intervention to boost US manufacturing competitiveness.

Recently, the Biden Administration proposed its American Jobs Plan, which includes over $400 billion in government funding for domestic manufacturing, research and development. The House soon followed suit by passing two bills aimed at increasing funding for the National Science Foundation and the Department of Energy's Office of Science.

Additionally, the Innovation and Competition Act is currently under consideration, which would trigger roughly $245 billion in new direct government spending and appropriations for various purposes, including semiconductor manufacturing, 5G development, and increased funding for the National Science Foundation.

Some argue that tariffs on over $260 billion of imported goods used in American production and growing regulatory burdens are hindering manufacturers' ability to invest in productive expansions. However, rather than implementing industrial policies that could have unintended consequences, Congress should focus on addressing the current challenges faced by US manufacturers.

Despite these concerns, it's worth noting that government intervention is not a new phenomenon in the US manufacturing sector. In fact, tariffs and other forms of protectionism have been used in the past to support domestic industries. However, it remains to be seen whether such measures would ultimately boost US competitiveness or simply create new challenges for businesses.

Ultimately, finding a balanced approach that supports American manufacturers without stifling innovation and competition will require careful consideration of all options on the table. Rather than resorting to government intervention, Congress should work towards creating a business-friendly environment that encourages investment and growth in the US manufacturing sector.

Government intervened in big business to