An investment bank to help the US prosper

01/22/2021
Network Papers

US president-elect Joe Biden wants to massively increase investment in everything from clean energy to healthcare and housing. But his efforts will be hampered because the US lacks vital tools that its major competitors and allies rely on.

Author(s)

To address the challenges America is facing — Covid-19, recession, inequality and climate change — Mr. Biden should create a public investment bank. Without one, the US is trying to respond with one arm tied behind its back.

Well-capitalised, vigorous public financial institutions can work with the private sector to soften the blows during downturns and extend prosperity in upturns. They support infrastructure investment and small and medium enterprises, especially in innovative sectors or serving vulnerable communities.