Humans are the most invested U.S. infrastructure

Does human care count as infrastructure? President Joe Biden’s $ 2.3 trillion has been a hot topic in the United States so far. American Jobs PlanAims to repair the country’s collapsing roads and bridges and strengthen its supply chain, but if the patchwork of small US coverage can be called a “system,” a system of health and childcare. It is also aimed at improving.

Biden’s plan is to spend $ 400 billion primarily on home health care for the elderly. An additional $ 25 billion will be spent to support childcare. Almost all Republicans and some Democrats in the middle are worried about this definition of extended infrastructure. Do we need to enhance such services to “build better”? Yes, then I would like to discuss some.

For starters, healthcare is where the future jobs are. Home care and personal care are projected to grow faster than other occupations over the next decade, according to the company. Ministry of Labor.. This is due to the aging of the vital population, but also to the automation of many other tasks.

This tech-driven work mess is painful for some, but not bad in nature. In the long run, based on historical experience, technology is a net job creator.But even in the short term, as economists Charles Goodhart and Manoji Pradan argue in their books. Massive demographic reversalRich nations “need all the automation available in the rest of the economy to properly increase productivity.”[and]To make up for what is lost by caring for an aging population. “

The job of care will be left at the bottom of the socio-economic spectrum. But hopefully they can release more productivity at the top. McKinsey Global Institute Better health results 2040 could add $ 12 trillion to global GDP. Much of this is due to increasing the productivity of existing workers who are suffering from health problems or who are responsible for their care.

Women, in particular, can make a lot of money by increasing their investment in the “care economy”. As Chairman of the Federal Reserve Board of Governors Jay Powell Said Recently, the United States “was leading the world in women’s workforce participation a quarter century ago, but now it’s not. That may be all. [our childcare] Policy has put us off. “

Women also took Extra hit Blockade. They generally had a disproportionate proportion of extra childcare and household chores (don’t let me start with the impact it has on mental health). They were also likely to be fired. In addition to Biden’s $ 25 billion infrastructure bill to upgrade child care centers, $ 39 billion Details for Childminders in the Covid Relief Package. In an ideal world, this would expand and improve care jobs, allowing well-educated women to play a more productive role.

Similar to the $ 100 billion allocated to schools, such investments improve human capital. Increasingly, this is the only type of capital that is important, as digital businesses simply do not require as much physical capital as older economic enterprises. The United States should also allow to cancel investments in worker training and other people, as companies do now with machines. This is endorsed by almost every business and Labor leader I know of.

When done properly, further investment in the care infrastructure can drive innovation.The White House is one of the reasons it is concerned about its supply chain Manufacturing generally promotes more innovation and productivity than any other sector. However, as manufacturing continues to be automated, it will not create as many jobs as it once did, regardless of how the supply chain is organized or whether or not it is reshored.

Can a caring economy fill the employment gap? Experts like Harvard economist Gordon Hanson, who are studying the interaction between the labor market and its location, say it is possible in some places. “Better bounce areas tend to have good colleges and medical facilities that can act as work engines,” says Hanson.

It’s easy to imagine that nursing homes and child care centers will be as hubs of innovation as large factories and R & D facilities. But there are already some.

Consider a location like the Cleveland Clinic, a non-profit medical center that integrates clinical and hospital care with research and education.Harvard Business School Subject Case StudyHas become a national and international job creator, but also a hub for cutting-edge innovation in areas such as pharmaceutical and device development and medical procedures. This is primarily due to leveraging big data, digital platforms and robotics, but also by working in an interdisciplinary way inside and outside the clinic.

At the very least, more investment in health and education will boost the types of social capital that characterize successful communities. Now, everywhere, we need more.Only 1.5 percent of World Bank concessional grant For health, only 1.9 percent for education.

Whether in rich or poor countries, investment remains primarily focused on physical capital. Perhaps more than any other form, it’s time to realize that human capital is the infrastructure of the 21st century.

rana.foroohar@ft.com

Humans are the most invested U.S. infrastructure

Source link Humans are the most invested U.S. infrastructure

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