The 2020s have illustrated the pitfalls of sidelining economic principles in policymaking, particularly during crises like the COVID-19 pandemic and ongoing inflation. Early decisions, such as lockdowns initiated by the Trump administration, demonstrated a troubling disregard for the trade-offs that economists emphasize. Influential figures like Jon Allsop highlighted the misconception that public health measures could operate independently of economic realities. Similarly, the Biden administration’s “run it hot” economic policy led to significant inflation, contrary to warnings from economists like Larry Summers. The resulting annual inflation rate peaked at 9.1 percent, reflecting the consequences of ignoring sound economic advice. President Trump’s tariffs similarly disregarded expert opinion, resulting in increased costs and a recession in manufacturing. Overall, the recurring theme is clear: neglecting economic principles fosters detrimental policies. A valuable resolution for 2026 would be to re-engage with economists to ensure sound, evidence-based economic policymaking moving forward.
Source link
Share
Read more