You will be shocked to learn that a “race to the top” in aviation subsidies between the U.S. and Europe has fueled what Tim Carney calls an “airplane bubble” that is due to crash in the not-too-distant future. The aviation industry is often cited as the poster-child for the virtues of a high-road industrial policy. Not coincidentally, it appears to be plagued by overcapacity.
But aviation isn’t the only example of industrial policy at work. Josh Barro cites a more prosaic example.