Sunday, February 01, 2015

Government Agencies Tasked to Help Manufacturing : Not Possible

Just from the idea that government will have a positive effect on industry is enough to say this is non sense. The only way for manufacturing to prosper is for government to stay the hell in Washington leaving industry to find the open market for innovation and success.

Government by it's very nature is corrupt and then to believe giving responsibility to a pack of bureaucrats to invigorate manufacturing  without bringing bias with them is to except the idea that politicians are there to help the country. Please.

Government Intervention in Manufacturing
Source: Thomas A. Hemphill, "Enabling Manufacturing vs. Tilting the Playing Field," Real Clear Policy, January 29, 2015.

January 30, 2015

Included in the massive omnibus spending bill passed by Congress in December was the Revitalize American Manufacturing and Innovation (RAMI) Act. The bill gives the Commerce Department authority to establish networks of manufacturing innovation centers across the country.
Writing at Real Clear Policy, Thomas A. Hemphill, NCPA senior fellow and professor at the University of Michigan-Flint School of Management, explains the centers:
  • The Department of Commerce can appropriate $5 million each year for administrative expenses for the centers for 10 years, and the Secretary of Energy can transfer $250 million over a decade to match state and private funding for the centers.
  • Each center will have a specific, manufacturing-related focus, such as a new process or a new material.
  • Federal funding for each center will begin decreasing after two years of funding and will disappear after seven years. However, Hemphill notes there are that allow the Commerce Department to alter funding for the centers.
While promoting manufacturing has bipartisan support, Hemphill says the bill tilts the playing field in favor of the technologies the government decides to promote, moving away from policies that simply set ground rules that allow for industrial innovation and moving towards government intervention in the manufacturing sector.
 

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