Industrial policy could be a new way forward for the US. No, I am not as naive to think that Congress and State Legislatures will have a revelation inspiring them to work for the public good. No, I don’t think that BigFinance will ever stop lobbying the legislatures, pumping a torrential stream of money into political campaigns. But, there is hope for some new ideas on how the US can foster new industry…and jobs…and trees.

Before you slavishly spew the neo-con psychobabble they taught you in a second-year Econ course, let me quickly defend “protectionist” industrial policy. It promises new jobs. It presents a targeted method to stimulate new industries with positive externalities for all of society to enjoy (e.g. clean energy). Industrial policy aimed at “green” jobs and industry is not “as” protectionist since there is a very weak global green industry presence to begin with. Sure, the Chinese and Europeans are in the race, but the race just started. There is real potential here, and all industries can be considered “infant” at this stage. Give the baby a goddamn bottle already!!!

It is time for the US to stop the weak subsidies at the backend (buyer credits) and start a more comprehensive, and incentivizing, approach. The Feds should use carrots to get States to get their act together with a local green movement, use public universities as incubators, etc. It’s not really a question of how, but how much: a ROBUST package of policies should be implemented that energizes and strengthens this pathetic industry. The private market (gasp!) is too slow; putting a few hybrids on the roads and a smattering of solar panels on American roofs will not do.

To all ye who think government is incompetent: the US Military is the most socialist organization in the United States, and the most advanced military in all of human history. If the US can contract with Boeing and others to build the best jets in the world, why can’t the US government contract with green technology firms to build a new future for the US? Shame on you.

the current state of affairs