U.S. Treasury Secretary Janet Yellen said the Biden administration’s focus on cybersecurity is critical to the country's economic stability. Speaking last week at the Economic Club of New York, Yellen also stressed a modern supply side economic approach to cybersecurity puts the U.S. "on the right path to building an economy that serves us well for the long term."
"[T]raditional supply side economics wrongly assumes that policies such as tax cuts for those at the top and deregulation will fuel growth and prosperity for the nation at large," Yellen said. "Modern supply side economics embraces collaboration with the private sector - targeting public interventions to create a supportive environment for businesses and to fuel private sector investments."
She cited the Inflation Reduction Act as an example of a tool to spur modern supply side economics. "The President's budget proposes ambitious policies to support strengthening the labor force, from guaranteeing affordable, high quality child care to expanding grants to reduce the cost of college across the country."
Programs like these, she said, help private sector demand in all sectors, including the talent-starved cybersecurity sector.
Cybersecurity Top Priority
Yellen singled out cybersecurity as a top priority, stressing its significance for both the public and private sectors. “Cybersecurity is no longer a niche concern but a fundamental component of our economic infrastructure,” Yellen said.
That public private partnership extends to understanding and responding to threats, but also when it comes to soliciting business leaders in the "financial sector as we finance the operations of the federal government."
Yellen highlighted recent supply chain and cyber incidents where private sector cooperation was crucial in mitigating potential damage. She praised American businesses for their resilience and roles in helping shape cybersecurity frameworks.
“Financial stability is inextricably linked to cybersecurity,” Yellen said, stressing that such collaborations are vital in identifying vulnerabilities and responding to threats in real time.
Mitigating supply chain vulnerabilities
Yellen also addressed the international aspect of cybersecurity, particularly in the context of economic relationships with countries such as China. She expressed concerns about macroeconomic imbalances and unfair trade practices that exacerbate vulnerabilities in global supply chains.
“Our economic strategy must adapt to these challenges by integrating robust cybersecurity measures,” she said, advocating for policies that ensure a level playing field and protect critical infrastructure from foreign cyber intrusions.
Yellen also underscored a need to fostering a secure and competitive economic environment. She stressed that cybersecurity is not just a technical issue but a strategic economic imperative.
“Our future economic strength depends on our ability to defend against and respond to cyber threats,” Yellen said, urging government and business leaders to prioritize cybersecurity in their strategic planning.
The remarks should help to underscore Yellen's role in shaping economic policy and her commitment to addressing contemporary challenges. As the U.S. navigates an increasingly complex global landscape, Yellen’s focus on cybersecurity will be critical in maintaining economic stability and competitiveness.
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