Home
/
RELIGION & LIBERTY ONLINE
/
A recipe for economic recovery from COVID-19
A recipe for economic recovery from COVID-19
Jan 18, 2026 3:02 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
Radio Free Acton: Seeking flourishing in the context of poverty; Upstream on ‘Redeeming Transcendence in the Arts’
On this episode of Radio Free Acton, Andrew Vanderput, PovertyCure strategy and engagement manager at Acton, holds a discussion with Peter Greer, president and CEO of Hope International, on how human flourishing can be brought about in the context of poverty. Then, on the Upstream segment, Bruce Edward Walker talks to author Jeremy Begbie about his new book, Redeeming Transcendence in the Arts. Check out these additional resources on this week’s podcast topics: Learn more about PovertyCure Learn more about...
The NHS and the spell of the White Witch
In The Lion, the Witch, and the Wardrobe, C.S. Lewis described the dreary state of Narnia under the curse of the White Witch as “always winter but never Christmas.” His assessment may soon apply to the National Health Service (NHS), whose annually intensifying “winter crisis” threatens to e permanent, according to the UK’s leading doctors’ association. “The winter crisis has truly been replaced by a year-round crisis,” said Dr. Chaand Nagpaul, chairman of the British Medical Association (BMA). Each winter,...
Why tariffs and protectionism makes Americans poorer
Earlier today President Trump imposed tariffs on imported steel (25 percent) and aluminum (10 percent) from the European Union, Canada and Mexico. Not surprisingly, the tariffs triggered immediate retaliation from U.S. allies against American businesses and farmers. “This is protectionism, pure and simple,” said Jean-Claude Junker, president of the European Commission.Junker is correct. The tariffs are are a form of protectionism that is frequently proposed by populists and Democrats. But what is wrong with protectionism? The short answer is that...
An introduction to the Solow Model
Note: This is post #80 in a weekly video series on basic economics. The Solow model was named after Robert Solow, the 1987 winner of the Nobel Prize in Economics. Among other things, the Solow model helps us understand the nuances and dynamics of growth, says Alex Tabarrok of Marginal Revolution University. The model also lets us distinguish between two types of growth: catching up growth and cutting edge growth. As you’ll soon see in this video, a country can...
6 Quotes: G.K. Chesterton on freedom and virtue
Yesterday was the 144th birthday of G.K. Chesterton. In his honor, here are six quotes by the great British writer on freedom and virtue. On defending virtue: “The act of defending any of the cardinal virtues has today all the exhilaration of a vice.” On modern freedom: “Most modern freedom is at root fear. It is not so much that we are too bold to endure rules; it is rather that we are too timid to endure responsibilities.” On courage:...
Unemployment as economic-spiritual indicator — May 2018 report
Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and munities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need...
Are the culture wars unique to our times?
Culture wars are plex with overlapping conflicts that are often confused and conflated, says John D. Wilsey in this week’s Acton Commentary. For the past five decades, Americans have waged what has monly referred to as a “culture war.” A number of authors have examined the culture wars from philosophical, historical, and sociological standpoints, especially since the early 1990s—Charles Murray, Robert Putnam, James Davison Hunter, Philip Gorski, and Andrew Hartman to name a few. It is tempting to see the...
Want to ‘change the world’? Embrace the glories of economic scale
As the latest crop of college graduates enters the workforce, many ing fully loaded with grandiose plans for “social transformation,” “giving back to munities,” and “making a difference.” Unfortunately, such phrases have e slippery slogans based on a cultural imagination that is far too narrow in its basic assumptions. Whether spurred along by the idealism of college professors, the hurrahs of mencement speeches, or the hedonistic calls of cultural tropes (“follow your passion!”), today’s youth are often clouded with a...
Winners of 2018 Mini-Grants on Free Market Economics
The Acton Institute Mini-Grants on Free Market Economics program accepts proposals from faculty members at colleges, seminaries, and universities in the United States and Canada in order to promote the scholarship and teaching of market economics. This program allows for collaboration between faculty from different universities, as well as help future leaders to emerge, strengthen, and expand the existing network of scholars within economics. Entrants may submit proposals in two broad categories: course development and faculty scholarship. Here is plete...
France’s 200 roads to serfdom
One of Europe’s most robust welfare states may be proving that government intervention and true social solidarity are inimical forces. Many economic interventionists on both sides of the Atlantic cite the Catholic social teaching of “solidarity” – or, at least, their own conception of it – to justify far-reaching government policies of wealth confiscation and redistribution. The British philosopher Julian Baggini wrote in The Guardian that “Tax Freedom Day” should be celebrated as “Social Solidarity Day.” But heavy-handed government policy...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved