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In economies with EXCESS productive capacity, targeted investment can yield a double benefit, generating short-run DEMAND and boosting GROWTH and productivity thereafter.

Author - Michael Spence

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1.
PROPERLY targeted public investment can do much to boost economic performance, generating AGGREGATE DEMAND quickly, fueling productivity growth by improving HUMAN CAPITAL, encouraging technological innovation, and spurring private-sector investment by increasing returns.

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In TERMS of productivity - that is, how much a worker PRODUCES in an hour - there's little difference between the U.S., FRANCE, and Germany. But SINCE more people work in America, and since they work so many more hours, Americans create more WEALTH.

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In America, you keep on HEARING productivity is low; secular stagnation, it's a new normal. It's just not true: We've had multiple wars; we're not educating our kids. We had GOVERNMENT shut downs, badly-spent money, failures in the HEALTH system, failures and an extreme AMOUNT of regulation - that's why we're going slow.

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The YEARS after 50 can be a TIME of great productivity, meaningful WORK, pleasure, creativity, and INNOVATION. It's a huge OPPORTUNITY.

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As a GENERAL principle, the American people would be well served by the active PURSUIT of effective POLICIES to support longer-run GROWTH in productivity.

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Stronger productivity growth WOULD TEND to raise the average level of interest RATES and, THEREFORE, would provide the Federal Reserve with greater scope to EASE monetary policy in the event of a recession.

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I was the one that brought it in, but not only for the north-east, for EVERY area so we can DEVELOP all the regional economies, lift up the national PRODUCTIVITY, GET greater wealth and share it more evenly.

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