ABSTRACT
Policy makers must make sure that there is a large tax-difference between the other sectors and manufacturing. The larger the difference, the larger will be the shift of resources from the other sectors on to manufacturing. Included under the rubric of financial incentives are grants and subsidized loans. The financial system shall provide the remaining and majority share of the financing. The financial system shall be entirely in private hands. The government shall guide private banks into allocating the largest possible share of their financial assets into manufacturing. Under the rubric of nonfinancial incentives are several mechanisms for reducing costs of production even more. A rational manufacturist policy can only operate adequately when governments also endorse the policies that mainstream economics has elaborated over the years. Even though a manufacturist policy considerably assists in the maintenance of fiscal rectitude and low inflation, governments must make additional efforts on the matter.
