Heuristics and Cognitive Biases in fiscal policy.

Synopsis: A bias has become evident in how governments tax and spend across most economies. Governments have increasingly focused on infrastructure such as roads and ports that create short-term jobs and do not cause people to develop advanced skills, indispensable for tech-related sectors. Rather than allow this bias to persist, policymakers should choose specific industries — such as automotive, industrial machinery, renewable energy, and pharmaceuticals — that will create sustained employment and up-skill the workforce and subsidize the wages in these industries. By