 The shutdown recession from February to April 2020 and subsequent government failures have caused substantial harm to Americans’ livelihoods, which include high inflation and a recession. One policy mistake was Congress adding more than $6.1 trillion in deficit spending since January 2020 to reach the new high of $30.6 trillion in national debt, or nearly $244,000 owed per taxpayer. Another mistake is the Federal Reserve monetizing much of the new debt, contributing to 40-year-high inflation rates. These bad policies have resulted in an inflated boom that is busting into what will likely be a long, deep recession with elevated inflation. The failed Keynesian policies out of the Biden administration, Congress, and the Fed must be replaced with a free-market approach so that Americans have more opportunities to prosper. Published at TPPF Since the severe spring 2020 shutdown recession, Texas has been a leader in economic recovery. This includes reaching new record highs in total nonfarm employment for 7 straight months, leading exports of technology products for 20 consecutive years, and being home to 54 of the Fortune 500 companies. Fortunately, the 87th Texas Legislature supported the recovery with the passage of many pro-growth policies like the nation’s strongest state spending limit, but there is more to do to remove barriers placed by state and local governments for Texans to reach their full potential. Solutions include governments passing responsible budgets and returning surplus tax dollars collected to taxpayers by reducing maintenance and operations property taxes until they are eliminated. Given the laboratory of competition in the U.S. system of federalism, other states are cutting, flattening, and phasing out taxes, so Texas must make bold reforms to support more opportunities for people to prosper, lower the rapidly rising costs of living, and withstand bad economic effects from policies out of D.C. https://www.texaspolicy.com/texaseconomy/ The economic destruction from the shutdown recession from February to April 2020 and subsequent policy mistakes has been persistent. The labor market has improved but this is not a “booming economy.” Congress has added $6 trillion in deficit spending since January 2020 to reach the new high of $30.5 trillion national debt, which amounts to about $91,000 owed per American. And the Federal Reserve has monetized much of the new debt, leading to a 40-year high inflation rate. This has resulted in stagflation rearing its ugly head for the first time since the 1970s with rampant inflation and a stagnating economy, as output may decline in the first half of 2022. The Biden administration, Congress, and the Fed can correct this by not overregulating, overspending, and overprinting, respectively, but instead providing pro-growth policies for more productive private sector activity so that Americans can improve their livelihoods. https://www.texaspolicy.com/an-insiders-insight-on-todays-economy/ Top Stat: Average hourly earnings (inflation-adjusted) down by 2.6% over last year. Link Key Point: Total nonfarm employment down 1.2 million jobs since February 2020. Link Overview: The economic costs of the shutdown recession from February to April 2020 and subsequent policy errors have been persistent and substantial across the nation. The U.S. labor market has been improving, but this is not a “booming economy” as weaknesses remain. This is in spite of Congress adding $6 trillion in deficit spending since January 2020 to reach the new high of $30 trillion national debt. And the Federal Reserve has monetized much of the new debt, leading to 40-year high inflation. Given rampant inflation and a stagnating economy, stagflation is here for the first time since the 1970s. Specifically, the Biden administration, Congress, and the Fed should stop overregulating, overspending, and overprinting, respectively, and instead provide pro-growth policies that support productive activity so that Americans can improve their livelihoods. https://www.texaspolicy.com/the-ginn-economic-brief-u-s-economic-situation-may-2022/ Texas is a leader in the economic recovery from the severe spring 2020 shutdown recession. Texans have overcome many challenges especially since the state was fully opened in March 2021, without statewide mask, closure, or vaccine mandates since then—as these should be voluntary. The 87th Texas Legislature supported the recovery with the passage of many pro-growth policies like the nation’s strongest state spending limit, but there were missed opportunities like permanent, broad-based property tax relief. Given other states are drastically cutting or eliminating taxes, Texas must make bold reforms so it can remain an economic leader, support more opportunities to prosper, and withstand bad policies from D.C. https://www.texaspolicy.com/texaseconomy/ The shutdown recession from February to April 2020 was devastating, and the costly effects of the policy errors since then have been large and long-lasting. There must be a return to the dignity and permanent value of work instead of dependency on government from Washington’s big-government agenda and mandates related to COVID-19. The U.S. labor market is better, but improvements are needed. This is in spite of Congress adding $6 trillion in deficit-spending since January 2020 to reach the new high of $30 trillion national debt. And the Federal Reserve has monetized the vast majority of the new debt, leading to a 40-year high inflation rate. Given high inflation and a stagnating economy, stagflation is here for the first time since the 1970s. Congress and the Fed should stop overspending and overprinting money, respectively, and instead provide pro-growth policies so that Americans can improve their livelihoods. https://www.texaspolicy.com/an-insiders-insight-on-todays-economy/ Texans continue to recover from the shutdown recession. There have been challenges like business closures, skyrocketing local property taxes, and anti-prosperity fiscal and monetary policies out of Washington. Fortunately, the Texas economy was (finally) fully opened on March 10, 2021, and the third wave of COVID-19 is now behind us with better results than after prior waves without statewide mandates of masks, closures, or vaccines—as these should always be voluntary. The 87th Texas Legislature mostly helped support the recovery with passage of many sound policies like a Conservative Texas Budget, a stronger state spending limit, and independent efficiency audits. However, there were missed opportunities like permanent, broad-based property tax relief. Given other states are drastically cutting or even eliminating taxes, Texas must remove government barriers so it can support more opportunities to prosper, remain an economic leader, and withstand bad policies out of Washington. https://www.texaspolicy.com/texaseconomy/ The shutdown recession from February to April 2020 was devastating. There must be a return to the dignity and permanent value of work instead of dependency on government from Washington’s big government agenda and mandates related to COVID-19. The U.S. labor market has been improving more slowly than expected even though Washington has tried “stimulus” time and again. Congress has authorized spending $7.2 trillion since the recession above the normal budget. The next bad policy from D.C. could be the $5 trillion Build Back Better Act that could add $3 trillion to the bloated $29 trillion national debt, ballooning the debt owed per taxpayer by $23,800 to $110,900. https://www.texaspolicy.com/an-insiders-insight-on-todays-economy/ Governments’ forced business closures and mandates in response to COVID-19 resulted in much economic destruction during what I am calling the “shutdown recession.” Returns to normal, to work, and to pro-growth polices are essential for the economic recovery and people’s flourishing. However, more government intervention in response to the Delta variant and reckless fiscal and monetary policies out of D.C. are hindering the recovery. The labor market has been improving more slowly than expected even though Congress has authorized $6 trillion since the pandemic started and may soon authorize another $6.2 trillion, while the Federal Reserve has more than doubled its balance sheet to $8.4 trillion. The federal government has been paying people not to work thereby supporting labor market shortages and a near record high of 2.1 million more job openings than total unemployed. In August, there was a record high of 2.9% of job holders who quit their job, possibly due in part to the vaccine mandates. Congress should stop paying people not to work, reject the reckless Build Back Better agenda, and return to the pro-growth policies supporting vast opportunities to let people prosper. Get the report ⬇️ Texans’ livelihood is improving after much destruction from forced business shutdowns by governments in response to COVID-19. Recently, some normalcy returned as the Texas economy was fully opened on March 10, 2021, contributing to less unemployment and an improved civil society. The regular and second special sessions of the 87th Texas Legislature supported this normalcy, with wins of sound fiscal and regulatory legislation, more paths to opportunity, and another Conservative Texas Budget. More successes may be realized during the third special session called by Gov. Greg Abbott by advancing more pro-growth policies to spend responsibly and eliminate property taxes thereby supporting the recovery and withstanding Washington’s anti-growth policies. Get the report ⬇️ OVERVIEW: Governments’ forced business closures and mandates in response to COVID-19 since March 2020 resulted in much economic destruction during the “shutdown recession.” A return to normal is essential for the recovery of economic growth and, more importantly, for the flourishing of people’s lives and livelihoods. However, more government intervention in response to the Delta variant and reckless fiscal and monetary policies out of D.C. are hindering the recovery. The labor market has been improving more slowly than expected even though Congress has authorized $6 trillion since the pandemic started and may soon authorize another $6 trillion, while the Federal Reserve has doubled its balance sheet to $8.4 trillion. The federal unemployment “bonuses,” which finally ended recently, and even more in handouts, which have reduced incentives to work, resulted in the record high number of job openings exceeding the number of unemployed and added to the recovery’s uncertainty. Instead, we need a pro-growth approach. https://www.texaspolicy.com/the-ginn-economic-brief/ Many Americans are recovering from the recession that began in March 2020 due to the COVID-19 pandemic and forced business closures by state and local governments. The economic expansion that began in the second half of 2020 continued in the first quarter of 2021 as many of those governments removed or reduced restrictions on the private sector. However, employment has slowed lately as some governments are still imposing restrictions and the federal government continues giving unemployment ‘bonuses,’ causing many people to choose unemployment over work. This has created a record number of 8.1 million unfilled job openings. Nevertheless, the economy is still growing, and more pro-growth policies should be implemented to support the tangible prosperity experienced until March 2020. More in the brief below: https://www.texaspolicy.com/an-insiders-insight-on-todays-economy/www.texaspolicy.com/an-insiders-insight-on-todays-economy/ Texas’s economy continues improving from the challenges of the COVID-19 pandemic and forced business shutdowns by government since spring 2020. This includes robust job creation in March 2021 as state restrictions ended on March 10, which should further improve economic growth and job creation this year. To help overcome the challenges still facing many struggling Texans and the assault on prosperity by those in D.C., Texas should commit to the Foundation’s Responsible Recovery Agenda. More on the data and how Texans can get back to work as quickly and safely as possible ⬇️ Many Americans continue recovering from the recession that began in March 2020 due to the COVID-19 pandemic and forced business closures by state and local governments. The economy had expanded in the second half of 2020 as many of those governments removed or reduced restrictions on the private sector. However, the growth stalled a little at the beginning of 2021 as many governments re-imposed restrictions as cases and hospitalizations spiked. Fortunately, those governmental restrictions have been reduced again and the economy looks to have picked up, helping Americans regain the tangible prosperity experienced until March of last year. We need more openings and pro-growth policies to let people prosper. Texas’s economy continues improving from the challenges of the COVID-19 pandemic and forced business shutdowns by government since spring 2020. More on the data and how Texans can get back to work as quickly and safely as possible ⬇️  Many Americans are recovering from the economic destruction that started in March 2020 due to shutdowns by state and local governments in response to the COVID-19 pandemic. The economy has improved, but the pace has slowed because of increased restrictions by many state governors making it more difficult to regain the tangible prosperity experienced last February. I highlight data on economic growth and employment and provide pro-growth policy recommendations to help quickly recover. More on the data ⬇️  The Texas economy continues recovering since the steep downturn due to the COVID-19 pandemic and business shutdowns by state and local governments in spring 2020. Tailwinds could be strong in 2021 if the government removes restrictions and follows responsible fiscal policy so people are free to live and earn money. The Texas economy has continued to recover since the steep downturn due to the COVID-19 pandemic and shutdowns by state and local governments in March. The partial reopening of most non-essential businesses has been a key part of that recovery, but the rise in COVID-19 hospitalizations has contributed to increased capacity restrictions that have slowed economic activity. https://www.texaspolicy.com/texaseconomy/  Many Americans are recovering after the economic collapse that began in March due to the COVID-19 pandemic and shutdowns by state and local governments. While the strength of that recovery has weakened, a sound policy approach will help support a safe, expedited, and less debt-riddled rebound so Americans have more opportunities to prosper. https://www.texaspolicy.com/the-ginn-economic-brief/ |
Vance Ginn, Ph.D.
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