If you want to boost USA manufacturing industries I’d look at the sector that killed it first.
Bring in international capital controls, forex restrictions, limit consumer / mortgage credit maybe bring in some directed credit requirements. Badically the bank regulation that was chucked out in the 1970s. When us msnufacturing industry mysteriously started to decline. 70s recessions were not only caused by oil price shocks, and the sectoral shift was reinforced by bank liberalisation.
I’d think you’d want to force the USA finance industry to invest (at least some decent amount) in the future of USA productive capacity, instead of letting them invest in China’s future and have an arms race to fuel a perpetual domestic property bubble.
Tarrifs might still be part of it - but if your domestic companies can’t borrow, they can’t grow or maintain/develop asset base.If they don’t have working capital facilities, they liquidate fast.
Tax breaks might work/help (as might tarrifs), but if taxes are all on profits, you still need to borrow against the future to make the investment in the present (i.e. make a loss and pay no tax anyway) to build the productive capacity. They’d be better for short payback or labour intensive industries than for capital intensive industry - without other stuff.
I guess if you mean income tax breaks for workers in certin types of jobs/companies, that is interesting. Either way you need quite a lot of monitoring to avoid corruption of just wierd distortions with unintended consequences. That’s what banks lending to businesses should do and be good at, monitoring their loans and their debtors.
If you want to boost USA manufacturing industries I’d look at the sector that killed it first.
Bring in international capital controls, forex restrictions, limit consumer / mortgage credit maybe bring in some directed credit requirements. Badically the bank regulation that was chucked out in the 1970s. When us msnufacturing industry mysteriously started to decline. 70s recessions were not only caused by oil price shocks, and the sectoral shift was reinforced by bank liberalisation.
I’d think you’d want to force the USA finance industry to invest (at least some decent amount) in the future of USA productive capacity, instead of letting them invest in China’s future and have an arms race to fuel a perpetual domestic property bubble.
Tarrifs might still be part of it - but if your domestic companies can’t borrow, they can’t grow or maintain/develop asset base.If they don’t have working capital facilities, they liquidate fast.
Tax breaks might work/help (as might tarrifs), but if taxes are all on profits, you still need to borrow against the future to make the investment in the present (i.e. make a loss and pay no tax anyway) to build the productive capacity. They’d be better for short payback or labour intensive industries than for capital intensive industry - without other stuff.
I guess if you mean income tax breaks for workers in certin types of jobs/companies, that is interesting. Either way you need quite a lot of monitoring to avoid corruption of just wierd distortions with unintended consequences. That’s what banks lending to businesses should do and be good at, monitoring their loans and their debtors.