Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

When People Can't Work, You See What The Economy Really Is

When People Can't Work, You See What The Economy Really Is

The economy isn't driven by stock prices or corporate profits - it only works because of workers. If they're doing well, the economy is doing well.
There has been a debate raging for decades about what the economy actually is, where economic growth comes from, and how to measure economic success. It took a public health crisis, a botched response, and a misplaced and dangerous proclamation by potentially the least economically informed president in US history, but that debate is now finally settled.

Before I explain how President Donald Trump inadvertently highlighted how progressives have been right about the economy all along, here is where the debate stood as of a few weeks ago:

On the one side were conservatives who argued that the most important aspects of the economy were corporations and wealthy “job creators” who, they claim, drive economic growth. According to them, all you needed to do to measure economic success was look at stock prices and corporate profits, and as long as they are high and rising, the economy is strong and growing.

These conservatives have spent decades pushing the idea that the best thing to do for the economy was for the government to get out of the way and allow the “invisible hand” of an unfettered marketplace to guide the economy. Not only would this allow corporations and the wealthy to create jobs and invest their gains, but, we were told, societal ills such as racial discrimination and gender disparities would eventually disappear, competed away by profit-seeking firms.

That view has driven policymaking for decades and shaped much of the economic discourse among business leaders and the media.

On the other side of the debate were progressives who have been saying for years that this dominant view of the economy has it absolutely backward. The most important aspect of the economy, we say, are the workers and consumers. And the best way to measure economic health and success is to look at how they, the people who make up the economy, are actually doing. Not the people at the top, not the corporations, not the stock market, but actual people. And not just some slice of them - all of them.

When everyday workers, families, and communities are thriving, the economy will thrive along with them. Conversely, if economic policies are focused on juicing the stock market or putting money into the hands of those so-called job creators - while allowing communities to be excluded, exploited, forgotten, or scapegoated - the economy will stagnate and underperform, will fail to deliver real prosperity, and will be inherently unstable and insecure.

Trump effectively conceded the debate to progressives in a recent appearance on Fox News.

He went on television and announced he wanted to get the country and the economy “opened up” and “raring to go” by Easter. This would have been an absolute catastrophe for public health and the economy because the only way for the economy to heal is by first stopping the spread of the virus. Luckily, he eventually reversed himself. But Trump’s wrongheaded desire to “restart” the economy revealed what “the economy” really is.

When the president talked about opening up the economy, he didn’t mean he wanted to open up the stock market - that was still open. He didn’t mean he wanted to “open up” corporate profits either. And he didn’t even mean he wanted all those wealthy “job creators” to go out and create jobs - they couldn’t, even if they wanted to.

What he meant was crystal clear and very telling. He meant that he wanted workers who were confined to their homes to go back to their workplaces. He wanted the factories that had been shut down because they didn’t have anyone to run the machines to be able to open again. He wanted people back out in the streets, in stores, hotels, and resorts - spending the money they had earned, creating a virtuous cycle of demand that drives robust economic growth.

This was even clear when he reversed his position and told people that social distancing would have to continue for longer. He realized that sickening or killing millions of workers would be even worse for the economy than keeping them home.

Nothing about the coronavirus pandemic makes this basic fact more true now than it has always been. The source of economic growth is, in a very practical and direct sense, the workers who create, produce, and deliver the goods and services that we all depend on and enjoy.

The more we fully include people in the economy - removing barriers like systemic racism and structural misogyny — the better off we will all be. Getting out of the way of rich people doesn’t create growth; it just creates opportunities for those rich people to use their power and position to hoard the benefits that come from growth.

There is a whole lot we need to do to pull our country out of this public health and economic calamity. But if there is one shared understanding I hope we can emerge from this crisis with, it’s this: We are the economy.

It’s a simple phrase, but it says a lot. The economy is not the stock market, or the bottom lines of a handful of massive corporations. The economy is the nurses, grocery store workers, warehouse and construction workers, and so many other workers and families. And when they aren’t prospering, the economy isn’t strong.

We are the economy, and we can join together - whether we are white, black, or brown, whether we were born here or we came here - to take back power from the wealthy and well connected and use it to invest in ourselves, unrig the rules, and include us all in the growth and prosperity that will follow.

This is true in a pandemic, as Trump not-so-eloquently highlighted. It’s true during good times, and it’s true all the time.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×