The U.S. government used to devote a much larger share of the country’s resources to investing in the future. Every year from the 1950s through the ’70s, federal spending on research and development equaled at least 1 percent of G.D.P. The share peaked above 2 percent in the 1960s.
The government made these R. & D. investments because the private sector often did not do so on its own. The investments involved basic science and early commercial development, which tend to be unprofitable for any single company. But the returns for society can be enormous.
The R. & D. boom in the second half of the 20th century led directly to the development of jet airplanes, satellites, semiconductors, the internet, M.R.I.s and lifesaving drugs to treat cancer, heart disease and other illnesses. It helped create world-leading industries, with good-paying jobs, in digital technology, pharmaceuticals, higher education and more.
In recent decades, though, the U.S. has pulled back from making these investments. The reasons are complex, but Americans’ increased cynicism — about the future in general and the role of government in particular — certainly plays a role. Today, the federal government spends less than 0.7 percent of G.D.P. on R. & D.
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