DONALD MACKAY: SA must get its countervailing act with incentives together
Subsidies are becoming popular in the US and will have negative effects on many of its trading partners
09 May 2023 - 05:00
Industrial policy is the fancy name governments use when they try to pick winners they believe the market has missed. They do this by erecting barriers to imports (duties, import permits and so on) and through subsidies, sometimes called incentives.
Subsidies as industrial policy are becoming popular in the US and will have negative effects on many of its trading partners. The Creating Helpful Incentives to Produce Semiconductors (Chips) Act attempts to bring semiconductor manufacture from Taiwan to the US, because the Americans are worried that if China invades Taiwan it will steal its secrets...
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