McKinsey research pinpoints five catalysts—in energy, trade, technology, infrastructure, and talent development—that can quickly create jobs and deliver a substantial boost to GDP by 2020.
The energy GDP boost is coming from shale oil and gas.
The US needs to research and develop ways to make each of the five areas more productive and lower cost.
The US should also look at ways to go beyond each of these areas.
In energy :
factory mass produced nuclear fission or nuclear fusion breakthroughs should be funded.
Increased investment in infrastructure, with a new emphasis on productivity. The backlog of maintenance and upgrades for US roads, highways, bridges, and transit and water systems is reaching critical levels. The United States must increase its annual infrastructure investment by one percentage point of GDP to erase this competitive disadvantage. By 2020, that could create up to 1.8 million jobs and boost annual GDP by up to $320 billion. The impact could grow to $600 billion annually by 2030 if the selection, delivery, and operation of infrastructure investments improve.
Obvious fixes to Bad Regulations Need to be Made
US oil tankers that comply with a 93 year old law (Jones act to protect US shipping industry from foreign competition) means costs are five times higher than buying ships from Asia. $200 million per ship instead of $40 million.
Paying over double for buses so that protected domestic bus makers and unions can benefit 32% of the buses in the US are sourced in California.
* China, South Korea, and Japan all produce more fuel efficient buses than U.S manufacturers
* buses in Tokyo and Seoul are half the price of U.S buses and buses produced in China are even cheaper
* While cynics might question the quality of China’s buses, it is notable that wealthy and well governed Singapore is importing buses from China
* U.S. tax payers face a higher price for subsidizing urban bus services and U.S owners of the domestic firms that produce the buses gain some monopoly rents. They also pay more for the increased fuel costs of less efficient buses
* 80% of bus costs are paid for by the federal government
* only 1.5% of buses are imported but 50% of cars are imported
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Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.