As a dyed-in-the-wool capitalist, the notion of government support to private industry raises some big concerns. Certainly as it’s practiced now in America via crony capitalism it reeks of evilness. Solyndra, Tesla, GE and many others are examples of funding things that politicians think are “good ideas” is at best stupid, and at worst stealing from the American people.
But what if it is strategic interests? The best example right now is our virtually non-existent nuclear power industry. The last company that existed in America that built reactors is bankrupt. Westinghouse doesn’t build them anymore. For that matter, Westinghouse isn’t even owned by an American company.
Liberals in the US hate nuclear power, so they don’t really care that we don’t have that capability. Yet, most of the rest of the world does like nuclear power and in developing countries and eastern Europe in particular, new construction of nuclear power plants is booming.
China is taking huge advantage of our withdrawal of the playing field. Unlike the US, when China provides aid, they take equity positions and will have control of much of the electrical grid of eastern Europe.
We can never take politics out of the equation, but a serious discussion on strategic industries in needed now. Identify the industries and figure out a free market strategy to create economic incentives to nurture innovation and production. Read more here.