Infrastructure bill’s digital investments could define a generation

For years we’ve heard a lot about the need to broaden our definition of infrastructure to include digital infrastructure. Now, for the first time, that’s exactly what may be about to happen.?The landmark infrastructure bill before Congress dedicates a projected $65 billion to ensuring every American has access to reliable, affordable, high-speed internet service. One part of the bill under consideration – the Digital Equity Act – provides skills training to lower-income communities, makes the internet more accessible for people with disabilities, and focuses on bringing broadband to more rural areas. As the economy has become increasingly digital over the past two decades, the digital divide has become an increasingly urgent issue.?Now the federal government is on the verge of dedicating significant resources to close it. That’s great news for businesses, employees, and the U.S. economy as a whole.

Nasdaq’s own recent experience show just how vital investing in digital infrastructure is.?In the years leading into the pandemic, we dedicated extraordinary resources to fortifying the market technology that underpins the U.S. Nasdaq exchange and the exchanges we run around the world.?In the earliest days of the pandemic, we saw unprecedented volume and volatility on the Nasdaq exchange that pushed our tech to its limits. Fortunately, our infrastructure proved resilient, and the technical performance of markets helped us manage through to better times.

We know that investing in digital infrastructure creates a virtuous economic cycle.?When we close the digital divide, we help ensure that students from all communities have an equal chance to learn and excel. When we ensure that small businesses in underserved neighborhoods have access to reliable networks, we give them a chance to find new customers and hire new employees.?Strong consumer broadband creates more users and customers, and this catalyzes new innovation in technology.

These investments add up.?A study by Accenture and Oxford Economics found that investing in digital skills, technologies, and accelerators could increase U.S. GDP by 2.1 percent annually. That’s more than $420 billion.

We have an opportunity to reimagine our economy as we hopefully emerge from the pandemic, and this starts with recognizing there’s no separation between the digital economy and the physical economy – virtually our entire economy is now digital.?Even as many still struggle from the economic impacts of the pandemic, the ingredients are there for a robust, inclusive recovery. Last year, a record of nearly 4.5 million new business applications were filed. These small businesses can drive job creation and economic growth. These are the fast-growing, fast-hiring public companies of tomorrow.?Strong digital infrastructure is an essential ingredient in helping them reach their full potential.?