Question

​It's widely believed that​ self-driving vehicles will become commonplace in the fairly near future and that their growth will be fast for years to come.​ Doesn't this mean that the United States should have policies designed to ensure that we are a leader in the​ self-driving car​ industry? Should the U.S. subsidize the domestic​ self-driving car​ industry?

Answer 1

Of course the US should implement policies designed to ensure that the country continues to lead the self-driving car industry. New technologies are always beneficial for the economy.

The government should consider handing out subsidies only if they can generate higher returns form market power than the costs of the subsidies.