Home
/
RELIGION & LIBERTY ONLINE
/
Economic policy should focus on economic issues
Economic policy should focus on economic issues
Dec 31, 2025 11:22 PM

With any new presidential es new policies. That’s part of the electoral calculus made by the American people every four years. Different presidents have different priorities. No one expects otherwise.

That said, it’s reasonable to anticipate certain consistencies. National security policy focuses on protecting America from foreign threats; its first priority is not gender equality. Similarly the Department of Energy’s main goal is to ensure that America has sufficient energy supplies; it’s not responsible for developing educational curricula.

In other words, there’s a natural division of labor that, notwithstanding potential overlaps, helps government officials concentrate on their specific responsibilities and establish who is accountable for what.

Which brings me to the Biden administration’s economic policies. If position and rhetoric of President Biden’s economic team is anything to go by, Bidenomics aspires to be focused as much upon addressing questions like racial disparities and climate change as on topics like growth, taxes, deficits, poverty, employment, etc., which traditionally fall under the economic policy umbrella.

Some progressive thinkers have even specified that they want the new administration’s economic policies to be filtered through what they call “an intersectional gender lens.” Broadly speaking, this means factoring in gender, race and ethnicity when designing economic policies, regardless of whether the topic is wages or infrastructure.

How much of the Biden administration’s economic rhetoric will amount to virtue-signaling to progressives as opposed to reflecting fundamental shifts in the framing of economic policy is yet to be seen. But there are two problems with taking economic policy in intersectional directions.

One is that it opens an already-wide door to trying to promote particular groups’ economic well-being through targeted, top-down government interventions. Historically speaking, it’s at best unclear whether such approaches have produced the anticipated results. There’s also evidence to suggest that such interventions have adverse unintended consequences.

Consider, for example, Lyndon Johnson’s Great Society programs. In Johnson’s own words, the goal was to use the federal government to “cure poverty,” especially among racial minorities. But as authors such as Amity Shlaes have argued, these interventions invariably had negative effects upon the very populations they were designed to help.

Among other things, they created disincentives to work and undermined long-established civil society networks which were quite effective at addressing some of poverty’s deeper causes (family dysfunctionality, substance addiction, etc.). Moreover, by the 1970s, the large bureaucracies created to implement these programs weren’t even hiding the fact that their priority had e self-preservation rather than the welfare of the groups they were ostensibly serving.

A second problem is mission drift. Economic policy has implications for vast spheres of human endeavor, ranging from defense to education. But there are some fundamentals that should remain top priorities for anyone engaged in designing and implementing any administration’s economic program.

One such priority is sustained wealth-creation. Without wealth-creation, it es difficult to enhance the economy’s ability to meet people’s economic wants and needs over the long term, let alone sustain employment.

Indeed, we can’t even begin to have serious discussions about distribution issues, unemployment and poverty unless we have ongoing economic growth. More equal distributions of a shrinking economic pie result over time, in diminishing returns for everyone — including, eventually, those on society’s margins.

More generally, it’s every economic policymaker’s responsibility to bring economic insights and issues to the forefront of policy discussions, not least because there are plenty of other government officials whose (often very expensive) priorities lie elsewhere.

The Environmental Protection Agency’s entire raison d’etre, for instance, is safeguarding the environment. Surely, however, there should be someone sitting on one of the Oval Office’s couches during a climate change discussion who’s courageous enough to highlight the significant economic costs associated with trying to achieve zero-emissions.

The Treasury secretary’s job is not to largely echo whatever her EPA colleague says. Instead, economic policy officials should be asking all those hard questions that people pursuing the realization of what the economist Thomas Sowell famously called “cosmic justice” (i.e., heaven on earth) don’t like answering. In fact, it’s precisely by pointing to realities like trade-offs, or reminding people that endlessly expanding deficits are unsustainable, or highlighting how excessive regulation incentivizes cronyism that economic policymakers make distinct contributions to political debates unlikely to be made by anyone else.

A society’s well-being obviously isn’t reducible to economics. Questions of freedom and justice go far beyond supply and demand. Nonetheless, economic policymakers should resist being reduced to handmaids to everyone else’s political agendas. Ironically, it’s through sticking to their lane that they are most likely to promote mon good.

This article originally appeared in The Detroit News on Jan. 31, 2021

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
Verse of the Day
  Commentary on Todays Verse   Complete Concise   Chapter Contents   Exhortations to obedience and faith. 1-6 To piety, and to improve afflictions. 7-12 To gain wisdom. 13-20 Guidance of Wisdom. 21-26 The wicked and the upright. 27-35   Commentary on Proverbs 3:1-6   Read Proverbs 3:1-6   In the way of believing obedience to God#39s commandments health and peace may commonly be enjoyed and though...
Verse of the Day
  1 John 4:20 In-Context   18 There is no fear in love. But perfect love drives out fear, because fear has to do with punishment. The one who fears is not made perfect in love.   19 We love because he first loved us.   20 Whoever claims to love God yet hates a brother or sister is a liar. For whoever does...
Verse of the Day
  Commentary on Todays Verse   Commentary on Psalm 90:12-17   Read Psalm 90:12-17   Those who would learn true wisdom, must pray for Divine instruction, must beg to be taught by the Holy Spirit and for comfort and joy in the returns of God#39s favour. They pray for the mercy of God, for they pretend not to plead any merit of their own....
Verse of the Day
  Hebrews 11:6 In-Context   4 By faith Abel brought God a better offering than Cain did. By faith he was commended as righteous, when God spoke well of his offerings. And by faith Abel still speaks, even though he is dead.   5 By faith Enoch was taken from this life, so that he did not experience death: He could not be...
Verse of the Day
  Commentary on Todays Verse   Commentary on Proverbs 22:4   Read Proverbs 22:4   Where the fear of God is, there will be humility. And much is to be enjoyed by it spiritual riches, and eternal life at last.   Proverbs 22:4 In-Context   2 Rich and poor have this in common: The Lord is the Maker of them all.   3 The prudent see danger...
Verse of the Day
  Commentary on Todays Verse   Commentary on Psalm 37:1-6   Read Psalm 37:1-6   When we look abroad we see the world full of evil-doers, that flourish and live in ease. So it was seen of old, therefore let us not marvel at the matter. We are tempted to fret at this, to think them the only happy people, and so we are...
Verse of the Day
  1 Corinthians 3:18-20 In-Context   16 Don't you know that you yourselves are God's temple and that God's Spirit dwells in your midst?   17 If anyone destroys God's temple, God will destroy that person; for God's temple is sacred, and you together are that temple.   18 Do not deceive yourselves. If any of you think you are wise by the standards...
Verse of the Day
  Commentary on Todays Verse   Commentary on Proverbs 15:4   Read Proverbs 15:4   A good tongue is healing to wounded consciences, by comforting them to sin-sick souls, by convincing them and it reconciles parties at variance.   Proverbs 15:4 In-Context   2 The tongue of the wise adorns knowledge, but the mouth of the fool gushes folly.   3 The eyes of the Lord are...
Verse of the Day
  Galatians 2:20 In-Context   18 If I rebuild what I destroyed, then I really would be a lawbreaker.   19 For through the law I died to the law so that I might live for God.   20 I have been crucified with Christ and I no longer live, but Christ lives in me. The life I now live in the body, I...
Verse of the Day
  Isaiah 61:7 In-Context   5 Strangers will shepherd your flocks foreigners will work your fields and vineyards.   6 And you will be called priests of the Lord, you will be named ministers of our God. You will feed on the wealth of nations, and in their riches you will boast.   7 Instead of your shame you will receive a double portion,...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved