Capital markets are now global. Money sloshes across borders in search of the highest return anywhere.
That means, increasingly, private investments follow public investment.
The only way to ensure private investors will continue to invest in America, and support the high living standards we want, is for Americans to be highly productive. This requires public investments in education, infrastructure, and basic R&D to keep us productive and make us even more productive in the future.
The federal budget doesn't reveal any of this, and the current debate over budget deficits further obscures it.
We need a public investment budget -- separate from the current expenditure budget -- that clarifies what we're investing in, and allows us to keep borrowing for such investments whenever the return justifies it.