Those investments only benefit very few people though, who already have well paying jobs.
Private investors prefer to take long bets in technology corporations (like FAANG, etc). That benefits to a small extent the few people working there because the high stock price convinces the CEO that he can afford another position here or there. It does nothing for the people in the lower income percentiles, because the additional money earned by the people in the higher percentile is not spent on consumables. It's mostly just spent on financial assets (that is housing, equity and bonds). Unsurprisingly the people in the lower percentiles have very few financial assets and mainly live off of their labor. Of course it won't benefit them.
Instead the government needs to invest in projects that create jobs for everyone. But since the biggest voting base consists of older people with lots of savings they don't want the government to spend more, which could cause inflation and increase their tax rate. QE by the Fed on the other hand increases their portfolio value. So it's ultimately a political decision.
Private investors prefer to take long bets in technology corporations (like FAANG, etc). That benefits to a small extent the few people working there because the high stock price convinces the CEO that he can afford another position here or there. It does nothing for the people in the lower income percentiles, because the additional money earned by the people in the higher percentile is not spent on consumables. It's mostly just spent on financial assets (that is housing, equity and bonds). Unsurprisingly the people in the lower percentiles have very few financial assets and mainly live off of their labor. Of course it won't benefit them.
Instead the government needs to invest in projects that create jobs for everyone. But since the biggest voting base consists of older people with lots of savings they don't want the government to spend more, which could cause inflation and increase their tax rate. QE by the Fed on the other hand increases their portfolio value. So it's ultimately a political decision.