Sunday, June 12, 2011

Government-supported industry

Should government subsidize nascent industries?

Some might categorically oppose any government intervention, believing that the government shouldn't try to pick winners.

Others would say that the government should intervene, but be smart about where it chooses to play.

An interesting historical example that I was only dimly aware of is the early government support for the aviation industry in the U.S.  The U.S. Postal Service helped subsidize the early aviation industry.  Predictably, government intervention results in some scandals, but it seems to have also helped advance the growth of the industry in the U.S.

From Innovation Bootcamp

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