America


6 Ways to Fix the Economy


GROW THE LABOR FORCE, REDUCE REGULATIONS, LOWER ENERGY COSTS, AND BOOST PRODUCTIVITY AND INVESTMENT.


Economist James Carter tells Congress how to unleash America’s prosperity.


A include:


Inflation. Registering only 1.4% at the start of the Biden administra- tion, it soared to 9.1% last summer, a 40-year high, before slowing to “only” 6.5% in early spring. Tepid economic growth. After con- tracting modestly in the fi rst half of 2022, the economy faces strong headwinds and is likely to fall into a recession this year. Labor shortages. The labor force


14 NEWSMAX | APRIL 2023 BY JAMES CARTER


merica faces a slew of nasty economic problems. To solve them, Congress should use pro-growth


improvements to current laws that would help it fulfi ll its role as the coun- try’s steward of economic prosperity. Four of the most vexing problems


participation rate, which dropped precipitously during the pandemic, has yet to rebound. With 11 million job vacancies (December 2022) and only 5.7 million unemployed (Janu- ary 2023) citizens looking for work, the economy faces labor shortages that are wreaking havoc with the supply chain.


Nonexistent productivity growth. Because employment grew in 2022, even as economic growth stalled, pro- ductivity turned sharply negative, resulting in the second-worst year for productivity growth since 1948. This prompted Wells Fargo to comment that productivity growth during the Biden administration includes “two of the ugliest quarters on record.” The economy would benefi t from policies to grow the labor force,


reduce regulatory and energy costs, and arm the labor force with great- er productivity-enhancing capital investment. Here are six ways to accomplish that.


1


STOP SPENDING Federal spending is out of control.


During the fi ve years before the pan- demic, it averaged 20.5% of GDP. In 2022, it was the equivalent of 25.1% of GDP.


Though the Biden administration


claims this higher level of spending was necessary due to the pandemic, the economy had largely rebound- ed by the time President Joe Biden took offi ce.


Nonetheless, during the fi rst two


years of his tenure, Biden increased projected federal spending by $4.9 tril- lion over 10 years. This massive and unnecessary


spending frenzy sparked the highest infl ation rate in 40 years.


MONEY/JASON RAFF/SHUTTERSTOCK / TAXES/ERICSPHOTOGRAPHY©ISTOCK


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