Home
/
RELIGION & LIBERTY ONLINE
/
A recipe for economic recovery from COVID-19
A recipe for economic recovery from COVID-19
Dec 25, 2025 5:35 PM

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
Drucker on the ‘master organization’ and the totalitarian conceit
This is the fourth in a series of essayson Peter Drucker’s early works. It was sometimes said of fascists that they “made the trains run on time.” In The End of Economic Man, Peter Drucker saw that fascists “proved” their fitness through effective organization. Technical details substituted for real social ends. But the real power of fascist organization has to do with its ambition prehensiveness. In effect, the fascist state holds up the political party and insists that all be...
Explainer: What does it mean to prorogue Parliament?
Prime Minister Boris Johnson has set up a collision with Parliament over the likelihood of a no-deal Brexit, as he announced that he intends to prorogue Parliament next month. Here are the facts you need to know. What does it mean to “prorogue” Parliament? To prorogue Parliament resets the session, as Members of Parliament take an extended recess. All pending legislation is wiped clean, except for measures MPs voted to carry over. The traditionalQueen’s Speechthen rings in a new session...
Acton Line podcast: What is woke capitalism? Daniel J. Mahoney on ‘The Idol of Our Age’
From Gillette to Pepsi, panies are starting to market their products by advocating for social justice issues, signaling to consumers that they are “woke.” Is ‘woke capitalism’ a trend that’s truly new in the market? Is there a place for businesses ment on social issues? Acton’s president and co-founder, Rev. Robert Sirico, explains. Afterwards, Daniel J. Mahoney, professor of political science at Assumption College speaks about his newest book, “The Idol of our Age: How the Religion of Humanity Subverts...
Latin America falls behind—again
Economic globalization has brought many economic benefits to the planet, but it’s also true that the benefits have been uneven. One continent which has lagged behind much of the rest of the world is Latin America. As a recent Wall Street Journal article entitled “Latin America Hangs On to Its Economic Gloom” pointed out: This year, once again, Latin America is shaping up as an economic disappointment. Brazil’s economy likely shrank slightly in the year’s first half, and Mexico’s didn’t...
Boris Johnson’s ‘win-win’ expressway to Brexit
Boris Johnson‘s decision to prorogue Parliament has opened up two paths for the UK to make a clean break from the European Union.This holds the potential to undermine globalism and the welfare state while diffusing prosperity to the developing world, according to a new essay by Rev. Richard Turnbull in the Acton Institute’s Religion & Liberty Transatlanticwebsite. Rev. Turnbull – the director of the Centre for Enterprise, Markets, and Ethics in Oxford – clearly explains the real impact of these...
Virtue and the Lake Wobegon effect
During the mid-1990s I spent a tour of duty as a Marine recruiter in southwestern Washington State. One of my primary tasks was to give talks at local high schools, but because many of the guidance counselors were not exactly pro-military, I was expected to give generic “motivational” speeches. I soon discovered my idea of what constituted a motivational speech was not widely shared. “Your parents and teachers have not been straight-forward with you,” I told the students in my...
Three fallacies behind population control
One of the constant refrains in economic development—and now environment issues—is the topic of population control. Evidence notwithstanding, the claim that population causes poverty and that the planet is facing a population explosion is taught as settled science—even in the face of serious population decline in some countries. We hear this over and over from the UN and popular media, in schools, and from people like Jeffrey Sachs to professional doomsday peddler Paul Erlich. Even the Vatican’s Pontifical Council for...
Michael Novak and the ‘crisis of capitalism’
Jordan Ballor recently brought to my attention this remarkable passage from Michael Novak’s The Spirit of Democratic Capitalism, “Our moral and cultural traditions have not kept pace with our economic possibilities. We try to match new demands with a spiritual life not designed for them.” What we think of as ‘democratic capitalism,’ and the economic and political theories which under-gird it, arose out of a tradition of moral and theological reflection on the institutions, ethics, and law of early modern...
Ignoring the invisible
I have been thinking a lot about all of the invisible things around us, important foundational things that we take for granted. Because they don’t immediately manifest themselves to our attention we can forget about them if we are not careful. There are different layers of “invisible” things or institutions or concepts that make life go on and that undergird our economic, political, and social life. One of the characteristics of these invisible things is that we don’t necessarily need...
Abba Moses on the Christian vocation
Today in the Orthodox Church memorate St. Moses the Ethiopian, also simply known as St. Moses the Black. His life and teachings have enriched the Christian spiritual tradition for more than 1,600 years, and he has something to teach us about the concept of vocation. Abba Moses was one of the desert fathers, the first Christian monks who lived in the wilderness of ancient Egypt and dedicated their lives to the pursuit of virtue and holiness. According to tradition, he...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved