Home
/
RELIGION & LIBERTY ONLINE
/
A recipe for economic recovery from COVID-19
A recipe for economic recovery from COVID-19
Dec 5, 2025 11:11 AM

With the focus on COVID-19 shifting from the health emergency (easing) to getting the economy going again (glimmers of hope), it’s easy to forget just how good the economy was before the pandemic hit. Recall that in mid-February, financial news organizations were reporting that the S&P 500 and the Nasdaq Composite indexes were hitting record highs.

In “Getting America Back to Work.” (Encounter Books, 2020), Andy Puzder has drawn a sharp contrast between the eight-year stagnation and regulatory overkill of the Obama administration and what he calls the Trump Economic Boom that followed. Among the many indicators he cites in his 43-page broadside is the National Federation of Independent Business optimism Index, which “blasted off” the day after President Trump’s November 2016 election and remained at historic highs right through February.

“Although massive government interventions that Barack Obama pursued following the Great Recession might presently appear beneficial or even essential, a return to Obama’s ‘new normal’ of stagnant growth would lead to disastrous and persisting economic damage,” he writes. “We must instead return, as soon as is safely possible, to the Trump model of economic prosperity that produced the strongest labor market in modern history.”

Puzder is a senior fellow at the Pepperdine School of Policy and was President Trump’s first nominee for Secretary of Labor. He withdrew the nomination in February 2017. He is the former CEO of CKE Restaurants Inc., pany of, among other fast food restaurants, Carl’s Jr. and Hardee’s.

So how do we get the economy going again? Will this be a short, sharp downturn, or a long agonizing stretch of slow growth and weak employment?

Puzder’s recipe is for more of the same policies that encouraged the “Trump boom” in the first place: regulatory relief, certainty, and tax policies that allow businesses and individuals to keep most of what they earn. That’s not a sure thing given that many on the left are intent on using the economic crisis to permanently expand government reach into the economy and prolong the labor market agony. To back that up, Puzder cites, among others, ment by House Majority Whip James Clyburn, D-S.C., that the coronavirus crisis is “a tremendous opportunity to restructure things to fit our vision.”

What that vision is doesn’t take much guesswork. You just have to listen to the actual words of those not wanting to let the coronavirus crisis go to waste. Here’s the response of Gov. Gavin Newsom, D-Calif., when asked in early April if the crisis was creating the potential for a new progressive era. “Yes,” he answered, “we see this as an opportunity to reshape the way we do business and how we govern.”

But you have to wonder how the Clyburn or Newsom vision could improve on the Trump numbers for those at the low-wage end of the labor market, which were at historic highs before the pandemic overturned the gains. If the dignity of work means anything at all, it has to be within the grasp of those in hourly wage jobs in sectors such as retail, hospitality, manufacturing, construction and the like.

“In 2019, unemployment hit lows not seen since the government began reporting the data for African Americans, Hispanics, Asians and people with only a high school education,” Puzder writes. “For women, the unemployment rate hit a sixty-five-year low and for teenagers (aged 16-19) it hit a fifty year low.”

Economic growth under Trump policies was strong, but what about the trade war with China? Fed economists estimated that the trade disruptions with China may have cost the United States 1 percentage point in growth. Still, under Trump, GDP growth hit 2.9% in 2018 and 2.3% in 2019. Puzder says that under Obama GDP failed to achieve a single year of 3% GDP growth, and only grew at a 1.6% rate in his last year in office.

“The same recipe that produced the strongest labor market in modern history can restore the wealth we lost because of the pandemic,” Puzder predicts. “If government helps people now, as it should, but otherwise gets out of the way and empowers the private sector, the impact of the virus will be a short-term hit from which we will recover rapidly. If the government keeps its heavy hand on the economy, we may never fully recover.”

How we handle this crisis going forward will make all the difference now. And that’s on all of us. “When this crisis ends, the choice will be ours,” Puzder concludes.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
New Issue of the Journal of Markets & Morality (19.1)
Our most recent issue of the Journal of Markets & Morality, vol. 19, no. 1, has now been published online and print issues are in the mail. In addition to our regular slate of articles examining the intersections between faith, freedom, markets, and morality, this issue contains a new entry in our Scholia special feature section: “Advice to a Desolate France” by Sebastian Castellio. Writing in 1562, Castellio was one of the first early modern defenders of freedom of religion...
Religious activists a ‘dismal failure’ at ExxonMobil and Chevron meetings
It’s all over but the chanting, which seemingly will continue unabated until religious shareholder activists bring panies to heel. What the Interfaith Center on Corporate Responsibility hyperbolically billed as “a watershed year” trickled into a puddle of disappointment yesterday for shareholder activists’ climate-change resolutions. The chanting began outside Dallas’ Morton E. Meyerson Symphony Center and the Chevron Park Auditorium in San Ramon, Calif., prior to the annual shareholder meetings conducted, respectively, by ExxonMobil Corp. and Chevron Corporation. Real chanting, dear...
Social democracy will harm American dream
With the rise in popularity of social democracy (a highly regulated market economy), Samuel Gregg has some words of warning against the system. “[T]he briefest of surveys of European social democracy’s history,” he writes in a new article for the Stream, “illustrates how these policies invariably induce the type of slow-motion decline that’s turned much of today’s European Union into the sick man of the global economy.” Americans looking to Bernie Sanders for a social democratic answer to their problems...
Wendell Berry: Great Poet, Cranky Luddite on Ag Tech
Image credit: Guy Mendes A new documentary, The Seer: A Portrait of Wendell Berry, misses the real story on U.S. farming productivity, says Bruce Edward Walker in this week’s Acton Commentary. Perhaps it’s the fact that the bulk of the film’s running time ignores two-thirds of what, for me, makes Berry so special – his fiction and poetry – in favor of what renders him more of a curmudgeon, which is his activism against industrial agriculture. Somebody cue up the...
Free eBook: ‘Not Tragically Colored’
For a limited time (May 26-28), Ismael Hernandez’ new book, Not Tragically Colored: Freedom, Personhood, and the Renewal of Black America will be free to download. Despite a seemingly endless series of programs, discussions, and analyses—and the election of the first African-American president—the problem of race continues to bedevil American society. Could it be that our programs and discussions have failed to get at the root of the problem? Ismael Hernandez strikes at the root, even when that means plunging...
7 Figures: What You Should Know About Global Life Expectancy in 2016
The U.N’s World Health Organization (WHO) recently released it’s latest version of World Health Statistics, a definitive source of information on the health of the world’s people. Here are seven figures from the report about life expectancy that you should know: 1. Life expectancy increased by 5 years between 2000 and 2015, the fastest increase since the 1960s. Those gains reverse declines during the 1990s, when life expectancy fell in Africa because of the AIDS epidemic and in Eastern Europe...
Can Banks Disrupt the Payday Lending Business?
Since its inception in the 1990s, the payday lending industry has grown at an astonishing pace. Currently, there are about 22,000 payday lending locations — more than two for every Starbucks — that originate an estimated $27 billion in annual loan volume. But payday lenders may soon face some petition. A few of the largest consumer banks in America are considering goingto market with new small-dollar installment loan products, reports the American Banker. The Consumer Financial Protection Bureau (CFPB), the...
Religion & Liberty: Is there a cure for America’s discontent?
“2016 Presidential elections in Pittsburgh” by Gene J. Puskar, April 13, 2016. AP The snow has finally melted in West Michigan, which means it’s time for the year’s second issue of Religion & Liberty. Recent news cycles have been plagued with images of angry Americans, students protesting and populist discontent. The 2016 presidential election has really brought to light that the American people are angry—specifically with American leadership. Here at the Acton Institute, we’re interested in looking more deeply at...
Explainer: What is Brexit, and Why Should You Care?
What is Brexit? British, Irish, and Commonwealth citizens will vote next month on the question “Should the United Kingdom remain a member of the European Union or leave the European Union?” Brexit is merely the shorthand abbreviation for “British exit,” which refers to the UK leaving the European Union. What is the European Union? After two World Wars devastated the continent, Europe realized that increasing ties between nations through trade mightincrease stability and lead to peace. In 1958, this led...
Authoritarianism ruined Venezuela
Venezuela, though filled with exotic beaches and many natural resources, has the most miserable economy in the world thanks to high inflation and unemployment. For a detailed background on the current situation in Venezuela, see Joe Carter’s recent explainer. Since Venezuela’s crisis took over the news, there has been plenty mentary about the chaos and what could have caused it. Acton’s Director of Programs, Paul Bonicelli argues that politics is to blame. “Venezuela is a dictatorship,” he writes in Foreign...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved