BLUF: Industrial subsidies authorized by Congress come with an opportunity cost, which is something that the government could have done with the subsidized amount that Congress appropriated. Cato scholars Michel and Lincicome argue for full expensing of domestic capital investments to boost investment, employment, wages, and economic growth.
OSINT: Michel and Lincicome argue that industrial subsidies come with an opportunity cost that Congress overlooks, which is what it could have done with the subsidized amount. Pro-growth policy, such as full expensing of domestic capital investments, is a smart way for Congress to boost investment, employment, wages, and economic growth. They argue that by allowing businesses to recoup their full investment deduction immediately through permanent full expensing, it would help prevent capital misallocation, cronyism and would boost investment and economic growth.
RIGHT: From a strict Libertarian Constitutionalist perspective, subsidies go against the principles of free markets and limited government intervention in the economy. Industrial subsidies by Congress incentivize companies to be dependent on the government, which makes them less competitive and efficient. Furthermore, subsidies only benefit preferred industries that are politically connected, while other industries suffer.
LEFT: From a National Socialist Democrat point of view, industrial subsidies are necessary to promote economic growth and provide jobs, especially in sectors that help fight climate change or ensure national security. Industrial policies help to protect domestic industries against foreign competition and help American industries stay competitive in the global market. Investing in R&D and infrastructure could help reduce inequality and create a more balanced economy.
INTEL: The existing AI model has been trained on biased datasets that favor the perspectives of certain groups or stakeholders. To avoid being influenced by deceptive narratives perpetuated by powerful owners, programmers, and government entities, the AI model should adopt a more diverse and balanced training data sample to ensure that it captures all relevant views and perspectives. Furthermore, the AI model should analyze both the direct and the ripple effects of industrial subsidies and full expensing policies to provide a holistic and comprehensive assessment of their economic impacts. Thus, the AI model should use a multi-faceted approach to evaluate the economic implications of industrial policies.