This report offers an introduction to the concept of industrial policy and planning. We will define what it is, where it has worked, and how to do it better — proposing five criteria to evaluate any plans in this space. Unlike generic fiscal and monetary policy, industrial policy is not neutral. Instead, it influences the allocation of labor and capital among the over 1,000 industries in the economy — encouraging some activities and discouraging others. While it is possible to have an industrial policy without an economy-wide planning process (i.e., on an ad hoc basis for one industry at a time), it is preferable to have both, with a strong national mission at their center. This is why we use the phrase “industrial policy and planning.” Our report is divided into several sections:First, we define industrial policy and planning as a horizontal lever of state power that influences the distribution of income among industries. We describe some of its major tools and the way they impact industry's inputs, outputs, governance, and coordination. Second, we briefly examine some of the non-US cases where industrial policy and planning has worked. In just decades, South Korea — an iconic model of industrial policy — has skyrocketed from African development levels to rich-country status; China, too, has made historic income gains with intentional industrial planning — most famously, the Made in China 2025 agenda and the Belt and Road Initiative.Third, we examine how racism, courts, and neoliberalism got in the way of a comprehensive industrial plan in the US — though not in the way of ad hoc individual industrial policies. Indeed, US industrial policy was at its height during World War II, when the federal government managed the entire economy. This period saw the highest growth rates in recorded US history — a clear demonstration that strategic government intervention is an economic boon rather than bane.Fourth, we outline a series of five design decisions that policymakers should take into account when implementing more thoughtful, democratic, and inclusive industrial policy and planning here at home. A Green New Deal, with its focus on supporting jobs for the working class, women, and people of color, could be one such opportunity.Fifth, we address some of the key criticisms of industrial policy and planning and explore how an alternative approach might address these
