The Next American Economy project brought together 30 experts from various disciplines to envision tomorrow’s economic and political challenges and develop today’s solutions. Their assignment: be bold, and leave the conventional wisdom — and their own opinions — behind. In today’s video, Brookings senior fellow Amy Liu posits that municipal goverments will take the lead on innovation and investment.
By 2040, as predicted, the federal government will be largely incapable of funding effective or innovative policies, speculates Amy Liu, Co-Director of the Metropolitan Policy Program at Brookings. Metropolitan areas will pick up the slack. They will reverse the race-to-the-bottom policies that aimed to offer companies the least explensive place to do business, and will instead focus on providing business with productive employees and critical infrastructure. The biggest problem could be a potential divergence in the success of metropolitan areas and expanding geographic inequality.