The 2022 Policy Agenda: Restore Fiscal and Public Health
As the President and Congress debate the 2022 agenda, many of our nation’s top business leaders see our nation’s calling at this defining moment in our history as startlingly clear: to demonstrate that we can work together to address challenges and achieve common goals at home and provide leadership abroad. We must deepen faith that democracy functions and that capitalism is sustainable.
While the US economy regained its pre-pandemic GDP peak level by the second quarter of 2021, and the near-term outlook for the economy is promising, we are facing important challenges. In 2022, we must deliver solutions on the interdependent objectives of restoring the nation’s public health, and restoring its fiscal and economic health, so that all Americans have equal opportunity to prosper. The steps are clear.
Defeat the Pandemic and Restore Public Health
While variants have produced setbacks, the U.S. has made steady progress toward controlling COVID-19. Now we must finish the job. That will mean greater public/private cooperation on vaccinations, treatments, testing capacity, and R&D to address variants. The federal government must clarify vaccine policy to avoid confusion and adverse, unintended consequences for the workplace, and carefully ease regulations to increase our healthcare system capacity, such as with telehealth.
The public and private sector together must reverse the flight of frontline workers. This includes recruiting new and retired personnel, accelerating degree attainment, and deploying the National Guard for healthcare duty. The Strategic National Stockpile must determine supplies needed, and how they are managed and supplemented through surge production and a strengthened supply line.
Equally important is the fight against COVID-19 globally. The U.S. must build international cooperation on vaccine and treatment distribution.
Revive the Nation’s Fiscal Health
The federal debt’s exponential growth, accelerated by the pandemic response, is unsustainable. Rising interest costs will preclude both public and private investment, and stunt economic growth. New spending must be fully paid for, and the reconciliation process should return to deficit reduction. To curb the rising debt, the costs of the pandemic response should be segregated and financed with very-long-term bonds. Along with fiscal policy, monetary and regulatory policy need revision to bring inflation back to target.
Revive the Nation’s Economic Health
Priority no. 1 is getting Americans back to work. Payroll employment remains more than two million jobs short of pre-pandemic levels. Employers, community colleges, other trainers, and policy leaders must collaborate to ensure that skills training is linked to job opportunities. Attracting and retaining talent will involve exploring hybrid work models and ensuring sufficient workplace flexibility and childcare options; local governments should prioritize at-risk children for pre-K education.
To address long-term negative demographic trends, the U.S. must compete in the global talent market by reforming the H1-B visa process, increasing legal immigration while stemming the illegal flow.
Education is the prerequisite of equal economic opportunity. Quality preschool is an integral part of education and workforce preparation. K-12 curricula and postsecondary education should align with in-demand job skills through collaboration among business leaders and educators.
To spur economic growth, the historic new levels of infrastructure modernization funds must be disbursed wisely and cost-effectively. This can be achieved through a streamlined regulatory process, cost-benefit analysis, and public/private partnerships. We must also increase federal funding for basic research to keep America an innovative global leader and to improve critical technologies for national security, public health, and economic growth. Investing in basic R&D is also needed to mitigate against climate change. Funding should focus on advanced energy technologies, including renewables and energy storage, and smart regulation to limit economic disruptions and preserve energy reliability and affordability.
Equally important, U.S. leadership is needed to address challenges to international trade rules—most importantly, from the second largest economic global powerhouse, China. U.S. leaders must work with our allies to protect intellectual property, enforce WTO global standards, and lower trade barriers. We must also identify potential supply chain vulnerabilities, global and domestic, determine what critical manufacturing needs to be re-shored, and establish what private and public stockpiles will protect against adverse contingencies.
The health of our democracy is the heartbeat of our prosperity. Secure, transparent, fair, credible, and accessible elections are fundamental to the confidence of Americans in their democratic government and require fair, competitive electoral districts determined by independent commissions on the state level.
Finally, a National Task Force is needed to identify lessons learned and prepare the nation for future crises.
Policy leaders must work on bipartisan solutions, so all Americans have equal opportunity to prosper in a society that is civil and just. Business leaders are essential partners in this effort. To prepare for what’s next, we must, together, take action now.
Dr. Lori Esposito Murray is President of the Committee for Economic Development, the public policy center of The Conference Board (CED). CED is a non-profit, non-partisan, business-led policy center that delivers well-researched analysis and reasoned solutions in the nation’s interest.
