President Joseph R. Biden Jr.’s policies to get the U.S. economy back on track seems to be working as the country is experiencing a robust economic recovery and a surge in worker productivity that could rival that of the tech boom 20 years ago. Since he took office on January 20, 2021, productivity has soared well-above the national average for the last decade.
Washington Post Heather Long writes that, “the U.S. could be on the verge of a productivity boom, a game-changer for the economy.” According to Long, “the optimism this time derives partly from Congress and the White House taking steps to make significant investments in physical and digital infrastructure.”
Productivity growth has widespread benefits for American households and the broader U.S. economy.
Long says “productivity gains typically lead to lower prices since factories and offices can produce more, and it tends to bring higher pay as workers are seen as more valuable and effective.” But productivity growth is not occurring by accident. According to Long, “the decision to stimulate the economy has also created a lot more demand than normal coming out of a recession, which is helping drive continued productivity and business investment.”
The bipartisan Infrastructure Investment and Jobs Act and President Biden’s Build Back Better Agenda will lay the foundation for increased productivity in the years ahead.
“The $1.2 trillion bipartisan infrastructure bill that recently passed the Senate has received widespread praise among business leaders and economists,” Long says. And, when it comes to President Biden’s proposals to bolster the care economy, economists agree that “creating more child-care infrastructure could cause the labor market to be more dynamic and drive stronger workforce participation from women.”