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Washington, D.C. shouldn’t run the nation’s economy

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Washington, D.C. shouldn’t run the nation’s economy


In the popular mind, nearly every American city owes its prominence to one private industry or another: steel barons built Pittsburgh, modern finance defined New York City, San Francisco and Austin have ridden high on technology. The one big city without a defining private industry, of course, is Washington, D.C., home of America’s federal government. That’s why it’s so odd that many on the right are now championing “industrial policy” efforts that would try to transform D.C. into a center of economic innovation.

Indeed, proposals for this heavy level of government engagement in the economy, once considered by many on the right as a crony-capitalist venture favored mostly by Democrats, has become increasingly popular with Republicans ranging from presidential candidate Donald Trump to Florida Sen. Marco Rubio. The sheer size of the federal government – more than a fifth of the economy – means that a totally hands-off attitude towards industry is impossible. But, even if the government can’t stay out of the economy entirely, recent history shows it can still foster innovation without picking winners and losers.

The actions typically thought of as industrial policy have an undeniable allure: nearly all experts consider important certain sectors such as artificial intelligence, energy production and biomedicine. By earmarking resources, changing regulations and imposing tariffs on non-U.S. industries and companies, the thinking goes that D.C. can secure prosperity. This is the fundamental approach taken by the Biden administration’s Inflation Reduction Act subsidies for green energy as well as proposals from Republicans to bolster heavy manufacturing and fossil-fuel production.

But expecting these efforts to work flies in the face of history. Since World War II, nearly every president has picked out a favored industry and tried to slant things in its direction. The Trump administration proposed billions of subsidies and even more costly regulations on competitors intended to benefit coal companies which slumped anyway. Bill Clinton’s administration spent millions on a “supercar” project that angered environmentalists and set back America’s efforts to build hybrid vehicles. Richard Nixon’s Department of Housing and Urban development launched an ambitious effort to change how housing got built and ended up making housing more expensive.

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American economic leadership in the 20th century was not the result of a bureaucratically overseen industrial policy. Our nation’s dynamism flows from a broadly supportive government role that involves multi-use infrastructure, limited but important support for science and regulatory certainty.

The government’s role has been most visible in major projects like the interstate highway system and modern internet. While both would not have existed without heavy federal subsidies, neither of these projects was intended to benefit one specific sector. Nobody wanted “leadership” or “jobs” in asphalt or fiber-optic cable production. Instead, the architects of both intended to create accessible scaffolding upon which the private sector could experiment, innovate and scale. Fast-food restaurants probably gained more from the interstate system than roadbuilders.

Similarly, the breakthroughs in technology emerged from regulatory environments where the government’s role was to lay the groundwork – funding basic research, experimenting with a few pilot programs, and then stepping back to allow the private sector to take the lead in development, commercialization and scale. This approach succeeded because it created new knowledge in every field of human endeavor rather than having politicians decide what was important.

Most important, the establishment of limited, efficient regulatory systems that offer clarity and certainty for private enterprises has been critical. Such frameworks enable businesses to plan for the long term, secure in their understanding of the rules of the game. Right now, the American tort law system punishes entrepreneurs and burdensome regulations favor slow-moving incumbent companies. Furthermore, many legacy regulations are ill-suited to the characteristics of new technologies.

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For example, the foremost challenge faced by green industries is regulatory burdens, whereas most green subsidies in the Inflation Reduction Act constitute corporate welfare. Comprehensive reforms to outmoded power-industry regulation and permitting and siting processes could do more to reduce emissions than the trillions of dollars the IRA is likely to cost taxpayers.

As policymakers grapple with the best path forward, it is imperative to remember that the strength of the U.S. economy lies in freedom, diversity and innovation. Principles that emphasize a limited government role could pave the way for a new era of American leadership in the global economy in a way that picking winners and losers never has. It is a no-brainer that Washington, D.C. shouldn’t run the economy.

Eli Lehrer is president of the R Street Institute.



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Washington, D.C

DC Public Health to begin daily testing of Potomac, Anacostia rivers for E. coli

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DC Public Health to begin daily testing of Potomac, Anacostia rivers for E. coli


Beginning on Monday, the D.C. Department of Health will be conducting daily tests for E. coli in the Potomac and Anacostia rivers. 

It comes more than five weeks after the Potomac interceptor collapse sent millions of gallons of sewage into the river.

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The testing will also coincide with an important safety advisory being lifted.

Why it matters:

Director of the D.C. Department of Health, Dr. Ayanna Bennett, says they will begin daily testing for E. coli in the Potomac and Anacostia rivers on Monday, along with help from the Environmental Protection Agency.

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Currently, D.C. is only testing weekly.

“We feel really secure that the initial sewage is not a threat to people, it’s passed through some time ago, but we do want to get more information about what the long term condition of the river is gonna be and how we should look at it going forward.”

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Big picture view:

Monday is also an important day because it’s when the District is expected to lift its advisory that recommends against recreational activities on the Potomac — we’re talking boating, fishing, walking pets by the water.

It’s important to note, however, that D.C.’s advisory pertains to its portion of the Potomac, and it has no bearing on advisories issued by officials in Maryland or Virginia.

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Still, this is being treated by many as a hopeful sign.

What they’re saying:

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But significant concerns absolutely remain for residents.

“I’ve had tons of messages from people saying they’re not going to let their kids row crew, they’re not going to go to sailing schools. We catch three million tons of blue cats out of the Potomac River. That season starts next week, and they’re not gonna be able to bring those blue cats to market,” said Dean Naujoks with the Potomac Riverkeepers.

“You knew years ago that parts of this Potomac Interceptor were corroded and vulnerable, especially where it broke, in Cabin John, our neighborhood,” one resident said, speaking at a public meeting in Bethesda on Thursday.

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“I know there are small business owners here. Who’s accounting for all of our losses that we’re getting due to your sewer blowing up?” another resident asked. 

Officials with D.C. Water, which is a public utility, have been running daily tests and will continue to do so as well.

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Pleasant, spring-like weekend for Virginia, Maryland, DC ahead of active start to March

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Pleasant, spring-like weekend for Virginia, Maryland, DC ahead of active start to March


After one of the coldest winters in years, the DMV is ending the month of February, and meteorological winter, with a nice spring preview.

Temperatures will reach the low 60s area-wide Saturday afternoon under mostly sunny skies. A real treat for the final day of February, enjoy!

Sunday will bring a few changes as an active weather pattern begins to bring in March.

Weekend forecast

A cold front will slowly move through the area and be mostly starved of moisture. There is a chance at a spotty shower or two, but most stay dry under mostly cloudy skies.

Temperatures will drop throughout the day as the front moves through with most afternoon temperatures in the 50s falling to the 30s by nightfall.

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European model forecast rainfall totals

European model forecast rainfall totals

This front will stall just to the south and be a focal point for several days of active weather next week around the DMV.

A wintry mix looks likely Monday with temperatures near freezing with little to no wintry precipitation accumulation, but a different story as that will then switch to all rain chances Tuesday through about Friday.

Forecast snowfall trend{p}{/p}
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Stay tuned to the First Alert Weather team as they continue to monitor forecast trends heading into next week.

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DC celebrates boost in college grant program for students – WTOP News

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DC celebrates boost in college grant program for students – WTOP News


The expanded funding aims to make college more affordable for thousands of D.C. students, continuing a program that has already helped nearly 40,000 graduates pursue degrees nationwide.

D.C. Mayor Muriel Bowser went back to school on Thursday. She headed to the gym at Coolidge High School in Northwest to make an announcement that could make college more affordable for eligible D.C. high school students.

Standing at the podium in front of a vibrant mural in the gymnasium, Bowser told the students, “A few weeks ago we got some good news from the United States Congress!”

“Even they can get it right sometimes!” she added.

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The news from Capitol Hill was that funding for the 25-year-old D.C. Tuition Assistance Grant program, or DCTAG, has been increased, something Bowser said she’s been working toward for 10 years.

Starting in the 2026-27 academic year, the maximum annual award for students who apply and qualify for the grants will go from $10,000 a year to as much as $15,000, and the overall cap increases from $50,000 to $75,000.

“These are real dollars guys, a real $15,000!” Bowser told the students. “This year alone, 4,500 students were approved for DCTAG, and that’s the highest number that we’ve had in the last five years.”

Since DCTAG was established, Bowser said nearly 40,000 D.C. high school students were serviced through the program, attaining degrees at more than 400 colleges across the country.

Among those who benefited from the DCTAG program was Arturo Evans, a local business owner who grew up in Ward 7 and graduated from D.C.’s Cesar Chavez Public Charter School.

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Speaking to the Coolidge students, Evans explained that as a high school student, he didn’t know if his dreams would ever come true.

“Do your homework, go to class, be on time, listen to your teachers,” he said. “Do not let your current situation determine who you can be tomorrow.”

Evans said without the grant money available in the DCTAG program his college prospects would have been “very limited.”

“I probably would have stayed local, probably would have had to go to a community college,” he said.

But he told WTOP, since he applied for and received grant money through the program, “TAG was able to pave the way for me to go ahead and achieve my dreams and go to my dream school,” at the University of Nevada, Las Vegas.

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While he was at UNLV, Evans said his mother’s illness meant he had to return to the District to help care for her. But thanks to help from his DCTAG adviser, he was able to complete his degree before becoming the CEO of his own D.C.-based business.

Among the Coolidge students attending the event was senior Victoria Evans (no relation to the speaker Arturo Evans), who also was in the DCTAG program and serves as the Command Sergeant Major of the Coolidge Junior Army ROTC.

Victoria Evans said she hopes to study medicine, and explained, “I found out about DCTAG through my school counselors and my college and career coordinators.”

Asked about the application process, she said, “It’s not hard at all. I would definitely say go and get the money they’re providing.”

D.C. Del. Eleanor Holmes Norton pushed to establish the funding when she introduced the D.C. College Access Act, which passed Congress in 1999. It was designed to address the fact that, since D.C. doesn’t have a state university system, D.C. students had limited access to in-state tuition at public colleges and universities.

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