The Different Types of Industrial Policies for Good Jobs

A policy of industrialization that creates good jobs is a key policy which should be accompanied by additional policies. It will strengthen the bargaining rights in the workplace, ensure adequate aggregate demand in an extremely tight labor market, and strengthen worker safety. They should be complemented by each and not serve as an alternative to them.

Long-term care sector

Making investments in the long-term health industry can create employment for hundreds of thousands of Americans, with stronger rewards and the possibility to organize and collectively bargain to receive a greater salary. It will increase productivity, high-quality and security of healthcare.

In the United States, the policy on industrial policy United States has long focused on the manufacturing sector and supply chain. However, recently, a Harvard economist has proposed an alternative approach that could result in more employment in service industries, like the long-term care sector. The economist defines a job that is good as one that pays well and places emphasis on workers’ abilities. This strategy will boost the quantity of excellent jobs in the service industry, that is one of the sectors with a a high rate of employee turnover.

Sector of Services

The third sector in the economy is the service industry. This is comprised of retail, office and service positions. It is the largest sector that is a part of the global economy, and it employs the most people. The manufacturing and agricultural sectors create tangible goods, the service sector provides essential services to the population. Automation is destroying middle-skilled jobs which is causing income inequalities along with political instability as well as adverse health and social outcomes. Democracy is also affected by the loss of middle-skilled workers.

In order to address this problem, the federal government has to take a stand to create good jobs. The federal government must create an oversight task force to look over regulators’ responses, and also provide funds for voluntary programs. The government should also establish governance mechanisms to ensure employment quality and the quantities. These policies can include requirements to meet higher quality standards and provide better services to employees.

Small and medium-sized businesses

Contrary to traditional industrial policies that are managed at the national level , and can be controlled only by large companies, an industrial strategy specifically designed for small and medium firms must be designed specifically for each location. This allows you for specific policies to meet the needs of the local market. The aim is to create an environment in which local companies prosper and produce good job opportunities.

It is imperative to determine the industrial policy in a more precise manner. Berger’s criticism is valid in some instances. Political consensus is necessary to accomplish the government’s objectives. The phrase of Warwick, “an industrial policy for good jobs in small and medium enterprises,” is insufficient, as it doesn’t reveal much about the nature of intervention in the field of industrial policy.

Public investments agreements

Public investment agreements constitute an important part of industrial policy that promotes good job opportunities. As a way to get public funds the agreements permit companies to use advantage of. These are common features in local and municipal economic development initiatives. The Commerce Secretary needs to modify the agreements to serve the best interests of the public, so that the financial support can be best used to achieve what is desired. The agreements must also contain the notion of working with workers, as well as encouraging enterprises to stick to established wage and work structures.

There are many ways to design public investment agreements to protect against corporate extraction practices. The policies that extract money from the financial sector include stock buybacks, for example, divert investment from innovation and productivity. Additionally, The CARES Act prohibits companies from paying dividends to shareholders when getting public support. The legislation also often contains broad language that allows for transfer of authority to government agencies. Therefore, the administration state decides on the conditions for the government-business partnership.


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