The Real Economy: August 2021
The rebirth of industrial policy in the United States
THE REAL ECONOMY
The U.S. Innovation and Competition Act of 2021, a $250 billion legislative package passed in June to facilitate the research and development of science and technology, represents a sea change in U.S. economic strategy and a return of the government’s use of industrial policy.
But the embrace of industrial policy to solve economic and strategic problems carries with it considerable possibilities and risks.
In this month’s The Real Economy, we explain what’s behind this new adoption of industrial policy in the United States. We also look at the increase in negative-yielding debt around the world, the rise of household debt to wealth, why the surging housing market still has room to run, and the use of employee stock ownership plans for owners of construction firms looking to retire.
IN THIS ISSUE
The U.S. Innovation and Competition Act of '21 represents change in U.S. economic strategy, a return of government use of industrial policy.
As the economy picks up steam, concerns about a debt hangover like the one that followed the 2008−2009 financial crisis are proliferating.
The issuance of negative-yielding debt declined as the global economy prepared to reopen, but that has reversed as investors seek safety.
The housing market is as hot as ever, helping to lead the economy out of the recession as builders scramble to keep up with demand.
What is the right succession plan? For many in the construction industry, the answer is often found in the employee stock ownership plan.
Middle market businesses are ready to invest, and want to participate in the rebuilding of America’s infrastructure.