Our current model of capitalism and the dominant ideas in policy making have led to a failure of investment by both the public and the private sector in the things that drive productivity, and which affect its distribution.

Markets are not static entities that are 'intervened' in (for good or bad) but are outcomes of public and private interactions.

Unfortunately, simplistic framing of problems leads to simplistic answers.

Growth in productivity has diverged from growth in the share that working people can expect right across advanced economies, but this trend started earlier and has been more pronounced in the U.S.

The globalized nature of production and innovation means that the benefits don't necessarily stay in the country where the investments are made.

Green is not just about renewable energy. It's also about creating a new direction for the whole economy. This requires government to step up, not step back, creating the kinds of mission-oriented public organizations that will enable us to tackle climate change - as ambitious as those that got us to the moon. It also requires the financial sector to be less short-term since we know that short-term finance has distorted incentives and directions in areas like biotechnology.

An interesting attribute of public banks is that they don't only de-risk the downside, but also get a share of the upside.