Under President Joe Biden’s leadership, the US federal government has created major new programs to support supply-side investments in America’s economic capacity. But success will require close coordination with state and local governments, which must respond with their own complementary measures.
BERKELEY – A new breed of industrial policy is taking hold in the United States. Under President Joe Biden’s leadership, the federal government has created major new programs through the Infrastructure Investment and Jobs Act ($550 billion), the CHIPS and Science Act ($280 billion), and the Inflation Reduction Act ($394 billion). These are not traditional spending measures to stimulate demand. Rather, as Secretary of the Treasury Janet Yellen explains, they are supply-side investments to boost US economic capacity, both overall and in key sectors such as semiconductors and renewable energy.
BERKELEY – A new breed of industrial policy is taking hold in the United States. Under President Joe Biden’s leadership, the federal government has created major new programs through the Infrastructure Investment and Jobs Act ($550 billion), the CHIPS and Science Act ($280 billion), and the Inflation Reduction Act ($394 billion). These are not traditional spending measures to stimulate demand. Rather, as Secretary of the Treasury Janet Yellen explains, they are supply-side investments to boost US economic capacity, both overall and in key sectors such as semiconductors and renewable energy.