Abstract: Since 2020, the United States has consecutively enacted three significant bills, collectively amounting to nearly $2 trillion: the Infrastructure Investment and Jobs Act, the 2021 Chip and Science Act, and the Inflation Reduction Act. The distinctive characteristics of industrial policy embedded in these bills have triggered extensive debates regarding the resurgence of American industrial policy. Despite enduring opposition to industrial policy from mainstream American economists, the United States has, in fact, utilized industrial policy to address challenges at various
points since World War II. This article, by elucidating the definition of industrial policy, traces the industrial policies of the United States prior to 2020, forming a foundation for observing new changes and trends in industrial policy in the U.S.
Historically, American industrial policy has primarily emphasized supporting research and innovation, seldom resorting to subsidies or actively "choosing winners" to achieve economic structural transformation. Five typical examples of policies targeting specific industries of Category I demonstrate that defensive trade protection measures, such as high tariffs, may reduce unemployment but often incur substantial costs. Conversely, expansive policies like opening foreign markets are more likely to succeed. Industrial policies of category II support research and development. Public research in advanced manufacturing has a leverage effect of two to three times on private capital. However, research programs related to energy transformation frequently face challenges in achieving structural transformation due to insufficient funding. The Defense Advanced Research Projects Agency (DARPA) played a pivotal role in the innovation waves, including the internet, in the latter half of the 20th century. Local (Regional) Policies of category III have demonstrated positive effects in augmenting local income in specific areas. Yet, there remains a debate about the effectiveness of such policies in improving national productivity and overall economic growth.
