Dubnick, Mel, “American States and the Industrial Policy Debate,” Policy Studies Review, 4 (1), 1984: 22-27.
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The document discusses the role of state governments in industrial policy, their incentives programs, and the implications for national economic strategies.
State Incentive Programs and Their Growth
- States have significantly expanded their incentive programs from 1966 to 1983 to attract and support industries.
- These programs include loans for building and equipment, tax exemptions, and land or resource moratoriums.
- The number of states offering these incentives has increased, indicating a proactive approach to economic development.
- Many states also promote their regions through media campaigns and deregulation efforts.
The Role of States in Industrial Policy Debate
- States actively participate in economic development, often independently of federal initiatives.
- Their jurisdiction covers critical areas like land, labor, resources, and regulations.
- State policies can influence industry decisions and regional economic health.
- There is potential for renewed federal-state conflicts over policy jurisdiction due to microeconomic programs.
Federalism and Intergovernmental Dynamics
- National industrial policy likely involves significant state participation, complicating federalism.
- Intergovernmental lobbying and regional coalitions influence policy development.
- States’ experience in microeconomic policies can aid in designing national strategies.
- Ignoring states in policy debates risks missing vital resources and expertise.
Implications for Policy and Constitutional Issues
- Including states in industrial policy raises constitutional questions about jurisdiction.
- State involvement could lead to conflicts with federal authority.
- Policymakers must consider legal, political, and programmatic impacts.
- Recognizing state efforts is crucial for effective and comprehensive industrial strategies.
Critique of Current Policy Discourse
- The debate often overlooks state activities, focusing mainly on federal policies.
- Many advocates dismiss or underappreciate state contributions to economic development.
- There is a need for more balanced analysis of state and federal roles.
- Understanding state policies’ influence is essential for shaping effective national industrial policies.