Notes Notes to the Introduction 1. Thomas Jefferson, Notes on the State of Virginia (Chapel Hill, NC: University of North Carolina Press, 1955), pp. 164-5. 2. Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations (New York: Oxford University Press, 1993), pp. 220-1. 3. Alexander Hamilton, "Continentalist No. V" (18 April 1782), "Opinion on the Constitutionality of an Act to Establish a National Bank" (23 February 1791), "Report on the Subject of Manufactures" (5 Decem­ ber 1791), in Morton J. Frisch (ed.), Selected Writings and Speeches of Alexander Hamilton (Washington, DC: American Enterprise Institute, 1985), pp. 279, 312, 296, 294, 57, 299, 58-9, 311. 4. Aaron Wildavesky, "Industrial Policies," in Claude Barfield and William Schambra (eds), The Politics of Industrial Policy (Washington, DC: American Enterprise Institute for Public Policy Research, 1986), p. 15. 5. Thomas K. McCraw, "Mercantilism and the Market: Antecedants of American Industrial Policy," in Barfield and Schamba (eds), Politics of Industrial Policy, p. 33; James M. Swank, The Industrial Policies of Great Britian and the United States (Philadelphia, PA: American Iron and Steel Association, 1876). 6. Mancur Olson, "Supply-Side Economics, Industrial Policy, and Ra­ tional Ignorance," in Barfield and Schamba (eds), Politics of Indus­ trial Policy, p. 266. 7. Robert B. Reich, "Small State, Big Lesson," Boston Observer, vol. 3 (July 1984), p. 32. 8. For the leading works on America's industrial policy debate, see: Michael and Susan Wachter, Toward a New U.S. Industrial Policy? (Philadel­ phia, PA: University of Pennsylvania Press, 1981); Barry Bluestone and Bennett Harrison, The Deindustrialization ofAmerica: Plant Closings, Community Abandonment, and the Dismantling of Basic Industries (New York: Basic Industries, 1982); Phyllis Levinson et al., The Federal Entrepreneur: The Nation's Implicit Industrial Policy (Washington, DC: The Urban Institute, 1982); Robert Reich, "Making Industrial Policy," Foreign Affairs, Spring 1982; Congressional Budget Office, The Indus­ trial Policy Debate (Washington, DC: Government Printing Office, 1983); US International Trade Commission, Foreign Industrial Targeting and its Effects on US Industries, Phase I, Japan (Washington, DC: USITC Publication 1437, 1983); Richard B. McKenzie, "National Industrial Policy: An Overview of the Debate," Heritage Foundation, Backgrounder, no. 275, 12 July 1983; Chalmers Johnson (ed.), The Industrial Policy Debate (San Francisco, CA: Institute for Contemporary Studies, 1984); Steven Schlosstein, Trade War: Greed, Power, and Industrial Policy on Opposite Sides of the Pacific (New York: Congdon & Weed, 1984); 263 264 Notes William Cline, "US Trade and Industrial Policy: The Experience of Textiles, Steel, and Automobiles," in Paul Krugman (ed.), Strategic Trade Policy and the New International Economics (Cambridge, MA: MIT Press, 1986); Claude E. Barfield and William A. Schambra (eds), The Politics of Industrial Policy (Washington, DC: American Enter­ prise Institute for Public Policy Research, 1986); For the mercantilist foundation of most industrial policies, see, Friedrich List, The National System of Political Economy (London: Longmans, Green, 1885); Eli F. Heckscher, Mercantilism, 2 vols (Lon­ don: Allen & Unwin, 1955); Jacob Viner, "Mercantilist Thought," in International Encyclopedia of the Social Sciences (New York: Macmillan, 1968), pp. 435-43; Chalmers Johnson, MITI and the Japanese Miracle (Stanford, CA: Stanford University Press, 1982); Paul Krugman, "The US Response to Foreign Industrial Targeting," Brookings Papers on Economic Activity, vol. 15, no. 1 (1984); Richard Harris, Trade, Indus­ trial Policy, and International Competition (Toronto: University of To­ ronto Press, 1985); Donald McFetridge, "The Economics of Industrial Policy," in D.G. McFetridge (ed.), Canadian Industrial Policy in Ac­ tion (Toronto: University of Toronto Press, 1985); Avinash K. Dixit and Albert S. Kyle, "The Use of Protection and Subsidies for Entry Promotion and Deterrence," American Economic Review, vol. 75, March 1985); Jonathan Eaton and Gene M. Grossman, "Optimal Trade and Industrial Policy under Oligopoly," Quarterly Journal of Economics, vol. 101 (May 1986), pp. 383-406; James A. Brander, "Shaping Com­ parative Advantage: Trade Policy, Industrial Policy, and Economic Performance," in R.G. Lipsey and W. Dobson (eds), Shaping Com­ parative Advantage, Policy Study No. 2 (Toronto: C.D. Howe Insti­ tute, 1987); Joan Pearce and John Sutton, Protection and Industrial Policy in Europe (London: Routledge & Kegan Paul, 1986); C.T. Saunders (ed.), Industrial Policies and Structural Change (London: Macmillan, 1987); James A. Brander, "Rationales for Strategic Trade and Industrial Policy," in Paul Krugman (ed.), Strategic Trade Policy and the New International Economics (Cambridge, MA: MIT Press, 1986); Although every analysis of the subject notes the strengths and weak­ nesses of specific industrial policies, for ideological critiques see, Charles L. Schultze, "Industrial Policy: A Dissent," Brookings Review, vol. 2, no. 1 (Fall 1983), pp. 3-12; Charles L. Schultze, "Cars, Quotas, and lntlation," Brookings Bulletin, vol. 17, no. 3 (1983), pp. 3-4; Herbert Stein, Presidential Economics (New York: Simon and Schuster, 1984). 9. "President Bush's Press Conference," New York Times, 25 June 1992. 10. Atack and Passell,A New Economic View of American History, p. 651. 11. Laura D'Andrea Tyson, Who's Bashing Whom? Trade Conflict in High­ Technology Industries (Washington, DC: Institute for International Economics, 1992), p. 1. 12. US Bureau of the Census, Statistical Abstract of the United States, 1990, 1l0th edn (Washington, DC: Government Printing Office, 1990). 13. Ikenberry, "Institutional Approach," p. 230; See also, Charles Tilly (ed.), The Formation of National States in Western Europe (Princeton, Notes 265 NJ: Princeton University Press, 1975); Gianfranco Poggi, The Devel­ opment of the Modern State (Stanford, CT: Stanford University Press, 1978); Reinhard Bendix, Kings and People: Power and the Mandate to Rule (Berkeley, CA: University of California Press, 1978); Peter Evans, Dietrich Rusechemeyer, and Theda Skocpol (eds), Bringing the State Back In (New York: Cambridge University Press, 1985). Notes to Chapter 1: Policymaking 1. Hugh Heclo, "Issue Networks and the Executive Establishment," in Anthony King (ed.) The New American Political System, (Washington, DC: American Enterprise Institute, 1979), p. 89. 2. Graham Allison, Essence of Decision (Boston, MA: Little, Brown, 1971), p. 163. 3. For an excellent article which explores these different ways of analyzing foreign economic policy, see G. John Ikenberry, "Conclusion: An In­ stitutional Approach to American Foreign Economic Policy, International Organization, vol. 42, no. 1 (Winter 1988), pp. 219-43. System-centered approaches include, Charles Kindleberger, The World in Depression (Berkeley, CA: University of California, 1973); Immanuel Wallerstein, The Modern World System, vols 1 and 2 (New York: Aca­ demic Press, 1974 and 1976); Robert Keohane and Joseph Nye, Power and Interdependence (Boston, MA: Little, Brown, 1977); Robert Keohane, "The Theory of Hegemonic Stability and Changes in International Economic Regimes," in Ole Hosti, R. Siverson, and Alexander George (eds), Change in the International System (Boulder, CO: Westview Press, 1980); Stephen Krasner, International Regimes (Ithaca, NY: Cornell University Press, 1982); David A Lake, "International Economic Struc­ tures and American Foreign Economic Policy, 1887-1934," World Politics, vol. 28 (April 1976), pp. 317-43; Bruce Russett, "The Mysterious Case of Vanishing Hegemony; Or Is Mark Twain Really Dead? ," International Organization, vol. 39 (Spring 1985); Duncan Snidal, "The Limits of Hegemonic Stability Theory," International Organization, vol. 39 (Autumn 1985), pp. 579-614; Robert Gilpin, The Political Economy of Inter­ national Relations (Princeton, NJ: Princeton, 1987); Society-centered approaches include, E.E. Schattschneider, Politics, Pressures, and the Tariff (New York: Prentice Hall, 1935); David Truman, The Government Process: Political Interests and Public Opinion (New York: Knopf, 1951); Robert Dahl, Who Governs? (New Haven, CT: Yale University Press, 1963); Theodore Lowi, The End of Liberalism (New York: Norton, 1969); Jonathan J. Pincus, Pressure Groups and Politics in Antebellum Tariff~ (New York: Columbia University Press, 1977); Timothy McKeown, "Firms and Tariff Regime Change: Explaining the Demand for Protection," World Politics, vol. 36 (January 1984), pp.215-33; State-centered approaches include, Peter Katzenstein, "Conclusion: Domestic Structures and Strategies of Foreign Economic Policy," in 266 Notes Peter Katzenstein (ed.), Between Power and Plenty (Madison, WI: University of Wisconsin, 1978); Peter Katzenstein, Small States in World Markets (Ithaca, NY: Cornell University Press, 1986); Stephen Krasner, Defending the National Interest (Princeton, NJ: Princeton University, 1978); Peter Evans, Dependent Development (Princeton, NJ: Princeton University Press, 1979); Peter B. Evans, Dietrich Rueschemeyer, and Theda Skocpol (eds), Bringing the State Back In (Cambridge: Cam­ bridge University Press, 1985). 4. Aaron Wildavesky, "Industrial Policies in American Political Culture," in Claude Barfield and William Schambra (eds), The Politics of Indus­ trial Policy (Washington, DC: American Enterprise Institute for Pub­ lic Policy Research, 1986), p. 17. See