Our analysis shows how decades of underinvestment in crucial sectors—from semiconductors to housing—has diminished America's productive capacity and contributed to inflationary pressures when demand strengthens. We evaluate how major public investment initiatives like the CHIPS Act, Infrastructure Investment and Jobs Act, and Inflation Reduction Act can catalyze private sector activity and remove bottlenecks to growth. Our research identifies regulatory reforms that could accelerate the deployment of new productive capacity and innovative public financing mechanisms designed to reduce risk for private investors. By addressing both the barriers to investment and the policy tools that can overcome them, we support the development of an economy with the capacity to meet demand while maintaining price stability.