The problem has been at least two decades in the making. American industry did not modernize its manufacturing processes soon enough. It did not pay enough attention to quality. It looked for high short-term re turns and neglected investments in R&D that ensure long-term prosperity. Moreover, the federal government has eschewed any thing like a coordinated industrial policy.
But now there is consensus that the federal government can and should play a role in improving America's competitive position. In his last State of the Union address, President Reagan underscored competitive ness as a priority issue for the nation and for his administration. In Congress, 160 senators and representatives have joined a caucus to promote competitiveness. Outside government, some 25 institutions in industry, education and labor have banded together as the Council on Competitiveness.
Out of all this, however, little of substance has yet emerged. In the past few years the ...
