Over the past few years, the term "industrial policy" has entered the American political debate. While much has been written about industrial policy, there is considerable confusion over what it actually means. There is general agreement that industrial policy involves some form of governmental asistance to industry, but the goals behind that assistance differ. This article explores the four approaches toward industrial policy prevalent in the current literature: problem solving, reindustrialization, reallocation, and structural. Each approach has its own core set of goals and policy focus and its own distinctive implications for economic policy making.
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