How investing in the public sector can boost the economy
Chair Rouse’s lecture highlighted the areas in which the public sector can be involved during periods of economic growth and recovery and three of the Biden-Harris Administration’s critical economic policy initiatives: the Bipartisan Infrastructure Law, the Creating Helpful Incentives for Producing Semiconductors for America (CHIPS) and Science Act, and the Inflation Reduction Act.
“We’ve been disinvesting in our public sector for quite some time,” she said. “We made a good start, but it’s just a start.”
She underscored the challenges facing the United States and its workforce, particularly “long COVID” and the unknown implications of post-COVID health conditions, as well as a growing number of critical areas in need of public sector involvement, from climate change and childcare to renewable energy.
“Investing in the public sector is an important tool for addressing the many diverse challenges facing the nation,” said Chair Rouse, who believes strongly that “the public sector is better equipped at times handle [the] losses” associated with financial risks like investing in physical capital to improve productivity.
“If we’re going to get back to a place of steady growth,” she said, “we need to be improving our capacity for productivity.”