Home
/
RELIGION & LIBERTY ONLINE
/
Economic policy should focus on economic issues
Economic policy should focus on economic issues
Jan 13, 2026 2:44 AM

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
No Plan? No Problem
The Cato Institute and Randal O’Toole offer an appealing new book, The Best Laid Plans—a recounting of the failures of government planning. Think of it as extensive documentation of the truth Hayek observed half a century ago: it is impossible for a central authority to collect all the information or make all the predictions necessary to foresee how economic activity will play out. Therefore, it is impossible to plan centrally the operation of major sectors of the economy such as...
Latin America’s Messengers for Recycled Marxism
An assortment of radical socialist chums gathered in Caracas, Venezuela for a lively discussion on the issue, “United States: A possible revolution.” The event was part of the third annual Venezuela International Book Fair on November 9-18, and featured the usual campus radicals, anti-American crusaders, and Marxist activists. As usual mitted Marxists, the main target of evil and oppression in the world is the United States. Writing a summary of events for the Militant, Olympia Newton’s article is titled, “Venezuela...
Wichita Business Journal: The Call of the Entrepreneur
Pat Sangimino wrote an article for the Wichita Business Journal titled, “Documentary seeks to dispel negative images of entrepreneurs ” (subscription required). A premiere of The Call of the Entrepreneur took place in Wichita, Kan., on November 14th. Sangimino noted in his piece: Some consider Wichita to be the Midwest’s cradle of entrepreneurship. Evidence of that is the original Pizza Hut building, which was moved to the Wichita State University campus in 1984 to serve as a reminder of what...
2008 Novak Award Nominations Being Accepted
The nomination process has begun for the international 2008 Novak Award. Named after theologian Michael Novak, this $10,000 award rewards new outstanding research into the relationship between religion and economic liberty. Over the past seven years, this award has been given to young, promising scholars throughout the world. To nominate an emerging scholar, plete the online form. We encourage professors, university faculty, and other scholars to nominate those who pleting exceptional research into themes relevant to the mission and vision...
PowerBlog Updates
Taking a cue from No Straw Men, I’m updating the look and feel of the Acton PowerBlog. Jonathan Rick suggests pletely separating your blog from your organization’s main Web site is a bad idea because you cut off access to useful information and create two distinct audiences rather than integrating traffic between two distinct sections of one Web site. Acton’s blog has always been on the same domain as the main Acton site (www.acton.org) but we’ve recently given the blog...
Rock N Roll ‘Jesus’
Last night the American Music Awards were televised on ABC. Among the big winners were alumni of the hit TV show, “American Idol,” whose stars won 3 AMAs. Kid Rock, the Rock N Roll “Jesus.” But there was another kind of “idol” on display at the AMAs, as Detroit’s own Kid Rock was a presenter and did a spoof of his fight with rocker Tommy Lee in edy bit with host Jimmy Kimmel. Kid Rock released a new album last...
Alarmism and Corruption
Regis Nicoll over at The Point notes a WaPo story that is getting a lot of play on the blogosphere about the UN’s downgrade of the estimate of the extent of the AIDS epidemic, “U.N. to Cut Estimate Of AIDS Epidemic: Population With Virus Overstated by Millions.” Nicoll writes that while of course it is good news that fewer people are infected than were previously thought, “The bad news is that previous estimates were inflated because of politics, bad science,...
A Puritan Legacy
There’s no better time to re-examine the legacy of the Puritans than on the Thanksgiving holiday, which is so closely associated with the Pilgrim’s exodus to America in 1621. With that in mind, here are a few resources for understanding the worldview that Max Weber called a “worldly asceticism.” “Eat, Drink, and Relax: Think the Pilgrims would frown on today’s football-tossing, turkey-gobbling Thanksgiving festivities? Maybe not.” Christian History & Biography.“History and Theology of the Puritans.” The Shepherd’s Scrapbook (links to...
A Heartwarming Story for Thanksgiving
Thanks to Rob Chaney at the Missoulian, the touching story of young Caden Stufflebeam is told. Chaney wrote a piece titled, “Rocks to riches: Missoula boy sells stones he finds to buy food for needy.” Appropriately noted as the top story for the paper in Missoula, Mont., Caden has been collecting and selling rocks and donating the proceeds to the less fortunate. The young boy is filled with an abundance of generosity and spiritual knowledge. Christ declared in Matthew, “I...
Reports on Globalization and National Capital
Last month the World Bank published a report titled, “Where is the Wealth of Nations?” (HT: From the Heartland). The report describes estimates of wealth and ponents for nearly 120 countries. The book has four sections. The first part introduces the wealth estimates and highlights the level position of wealth across countries. The second part analyzes changes in wealth and their implications for economic policy. The third part deepens the analysis by considering the importance of human and institutional capital,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved