Changes to our economy through technological innovation and globalization have delivered enormous prosperity, but the benefits have not been equally shared.
Almost all of the increase in average household income over the past four decades has gone to the top 40% of earners, while families in the bottom 60% have seen average income stay flat or even decline. The benefits of our modern economy are strongest in certain geographic areas. 5 metro areas combine to receive more than 80% of venture capital investment while 16 states have more than 20% of their population living in economically distressed zip codes.
To ensure that everyone has an opportunity to live the American Dream, John Delaney proposes making significant investments in the areas that have been left behind by globalization and providing the necessary resources to prepare for the future of work.
- Direct investment in communities that have been left behind by globalization and technological change:
- Delaney will give priority in government contracting to companies with a majority of employees located in economically struggling communities. Ensuring that the government supports businesses that are not in already-prosperous areas will promote economic growth in areas that have suffered due to globalization and automation.
- Delaney supports opportunity zones, which encourage private investment in distressed communities by providing tax incentives on certain long-term investments. Investment from the private sector, supported by the right incentives, can turn around economically-struggling communities.
- Making an investment to rebuild our infrastructure will create jobs in hard-hit communities and encourage economic growth. This includes transportation, high speed internet, and clean water systems.
- Developing a national strategy to address Artificial Intelligence will allow every sector of our economy to benefit from technological change. By understanding the true effects of AI and other forms of innovation, our government can help manage the transition into the increasingly automated modern economy and minimize the disruption for American workers.
- Guaranteeing free Pre-K through 14 public education will give everyone the opportunity to succeed and ensure that students learn the skills they need.
- Doubling the Earned Income Tax Credit will help hardworking families make ends meet. The EITC has lifted millions of people out of poverty, including 2.8 million adults and nearly 3 million children in 2016 alone. Delaney would also expand EITC eligibility for childless adults to increase the incentive to work and stop our tax code from burdening low-wage earners.
Delaney’s plan will increase economic opportunity for all, prepare workers for the future, and help hardworking Americans get ahead. With smart policy, we can solve the challenges that globalization and technological advances have created and position ourselves to benefit from these enormous changes to our lives and to our economy.