Recommendation

The administration should develop a national productivity strategy using sector-specific analyses.

Details

Productivity growth is the most important factor in national economic performance because strong across-the-board income growth cannot occur without it. Yet markets acting on their own will underperform, so nations need explicit, well-thought-out productivity policies—and that should start with a sophisticated understanding of how industries differ and thus which policies will be most effective in driving productivity improvements.

Keep reading:

▪ Robert D. Atkinson, “Sectoral Policies to Drive Productivity Growth” (ITIF, October 2021), https://itif.org/publications/2021/10/12/sectoral-policies-drive-productivity-growth/.