Milken Institute's Lee on Expanding Capacity by Incentivizing Investment

The video discusses the relationship between inflation and investment, particularly in the context of the Trump administration's tax overhaul. It explores how corporate cash repatriation often leads to stock buybacks and dividends, but argues that this money eventually gets reinvested. The video also examines productivity trends, comparing current conditions to the 1990s, and highlights the role of technology in sustaining wage increases without raising prices.

What is the primary goal of the Trump administration's tax package as discussed in the video?

• To expand capacity through long-term investment

• To reduce inflation immediately

• To stimulate short-term economic growth

• To increase government revenue

According to the video, what is a common use of corporate cash brought back from abroad?

• Stock buybacks and dividends

• Paying off corporate debts

• Investing in new technologies

• Expanding workforce

How long does it typically take for reinvested shareholder returns to impact productivity?

• 1-2 years

• Immediately

• 6-8 years

• 3-5 years

What technological advancement in the 1990s significantly contributed to productivity growth?

• Electric vehicles

• Mobile phones

• The introduction of the computer

• The internet

What challenge is mentioned in the video regarding measuring productivity enhancements?

• Lack of data

• Inconsistent metrics

• Difficulty in capturing technological impacts

• Rapid changes in technology