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In
excerpts from a speech Yellen is due to deliver in Detroit, she
said the administration’s economic agenda is both "pro-growth
and pro-fairness."
Yellen has labeled Biden’s economic agenda, including earlier,
unrealized plans for more spending on child care and education,
as "modern supply side economics.”
Unlike the Reagan-era term that focused on tax cuts and
deregulation to encourage productive investments, Yellen will
argue that her version will focus on a range of investments to
boost productivity across more "sectors, people and places.”
This includes investment in communities previously "forgotten
and overlooked" by new and growing industries, which may
generate higher returns, Yellen said in the excerpts seen by
Reuters.
"We know that a disproportionate share of economic opportunity
has been concentrated in major coastal cities. Investments from
the Biden economic plan have already begun shifting this
dynamic,” Yellen said.
"Given its manufacturing focus – and manufacturing’s reliance on
strong infrastructure and supply chains – we expect to see
dollars catalyze innovative investments across cities and towns
that haven’t seen such investment in years."
Yellen’s speech in Detroit, which has suffered from a major
shortage of semiconductors that has curtailed vehicle
production, is part of a part of a multi-city speaking tour this
month to tout President Joe Biden's recent legislative
achievements in the run-up to congressional elections in
November.
These include this summer’s legislative packages to invest in
green energy, healthcare, semiconductors and research, as well
as tax enforcement and last year’s infrastructure investment
plan.
Under the $52.7 billion CHIPS and Science Act, the Commerce
Department will spend $10 billion over four years to establish
20 technology and innovation "hubs" that bring together state
and local governments, universities, businesses and labor groups
to develop local technology intensive industries and jobs.
Yellen said these would be geographically dispersed with a
priority for "underserved and underrepresented" areas.
"Such dispersal of economic opportunity across the country will
mean good new jobs in industries of the future," Yellen said in
the excerpts, with "cascading economic progress for local
communities."
(Reporting by David Lawder; Editing by Kim Coghill)
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