Cato Institute
Policy Analysis
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Office of Technology Policy. This office
ing uncompetitive industries by enforcing
directs many of the corporate welfare pro-
"antidumping" regulations. Free trade
grams in the Department of Commerce. It
should be encouraged, but it should be done
would not be necessary if the federal govern-
by means of free-trade agreements, not subsi-
ment were not involved in giving money and
dizing certain industries and penalizing for-
benefits to private industry.
eign imports.
Manufacturing Extension Partnership. This
Department of Defense
program provides grants to fund the creation
Army Corps of Engineers. The Army Corps of
and maintenance of dozens of extension cen-
Engineers builds, operates, and maintains the
ters to assist small and medium-sized manu-
nation's inland waterways system, including
facturing firms in making use of modern
dams and other structures. Those activities
manufacturing and production technolo-
subsidize the private barge companies and
gies. General taxpayer funds should not be
bulk commodity shippers who make frequent
used to provide assistance to one specific
use of the waterways. In addition, the corps'
industry, as they are in this case.
water supply and hydroelectric projects subsi-
Minority Business Development Agency. The
dize the water and power supplies of industry
Minority Business Development Agency
General taxpayer
in the areas served by those projects. Its opera-
attempts to promote the development of
funds should not
tions could be privatized so an efficient toll-
minority-owned businesses through the provi-
based system or private pricing system could
sion of management and technical assistance
be used to pro-
be used to fund those activities.
and assistance in gaining access to capital. The
vide assistance to
Cargo Preference Program. The Cargo
MBDA's activities often focus on helping
one specific
Preference Act of 1904 requires all goods pro-
minority-owned businesses chase government
cured by the military to be transported by
grants and contracts. To encourage the devel-
industry.
U.S. merchant marine vessels. This monop-
opment of minority-owned businesses, the
oly protects the merchant marine from com
-
federal government should stop showering
petition with foreign shipping companies
them with taxpayer money and instead focus
that can typically transport goods more
on removing the many government impedi-
cheaply. It also protects the merchant marine
ments to the formation and growth of minor-
from competition with other more efficient
ity firms, such as unnecessary regulations and
forms of transportation, such as airplanes.
the onerous burden of taxation.
Defense Advanced Research Projects Agency.
National Oceanic and Atmospheric Administra-
This agency gives money to companies and
tion: Non-Weather-Related Activities. The non-
industry consortiums to undertake cost-
weather-related portion of the National
shared research projects to develop technology
Oceanic and Atmospheric Administration
that would have a "dual-purpose" application:
budget funds activities such as the analysis of
technology that can be used by the U.S. mili-
fishery industry information, fishery trade
tary and also has a commercial purpose. One
and export promotion, and industry assis-
of the stated goals of the program is the
tance programs through the National Marine
"commercialization" of the technology devel-
Fisheries Service, all of which provide benefits
oped with taxpayer money.6 8 The participat-
to the fishing industry. The American
Fisheries Promotion Act gives grants directly
ing companies retain title and license rights to
to fisheries to increase their productivity.
the inventions so they can sell the products in
the private marketplace.6 9 The Department of
Other non-weather-related activities include
the mapping and charting services, which are
Defense should buy technologies in the open
used by private industry, of the National
market when they are developed, not subsidize
Environmental Satellite, Data, and Informa-
the development of technology that has clear
tion Service. Those services could be provided
money-making potential for private firms out-
by the private sector.
side the military demand for them.
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