US embarks on a new kind of industrial policy

Washington reinvents strategy with focus on microchip production and charging stations, rather than traditional ‘roads and bridges’

The US is undergoing an economic epiphany. Decades of underinvestment have left its infrastructure stranded back in the middle of the 20th century, and policymakers realise that leaving business strategy entirely to the discretion of incumbent industries has not worked out well. The Biden administration, which has not even logged 90 days in office, has seized upon this sclerosis and taken bold action. In the details of its aggressive infrastructure plan released late last month, one can easily pick out the areas of most concern. Essentially, Biden’s policy wonks want to make sure the country quickly electrifies. And that means far better control over microchip production capacity, the broade