A Strong Economy

Stipulate, arguendo, that we actually have one of those going on. Federal Reserve Chairman Jerome Powell wants to cool it down hard.

The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.

That is the Fed’s standard answer for dealing with inflation, manipulating interest rates are its primary tool, and it’s not an entirely wrong answer. Burgeoning economic activity that has demand for goods and services overwhelming the ability of producers to deliver the goods and services is a major driver of inflation, and that inflation hammers us average Americans by badly devaluing our incomes. Dampening demand is a way to deal with inflation.

However.

Consumer demand isn’t the only component of overall economic demand: Federal spending is another major player, and the Federal government creates completely artificial demand with its spending.

Repeat my opening stipulation. If our economy is strong, we don’t need nearly so much Federal spending. The Biden administration—and any following series of administrations—need to cut out the stimulus spending, cut back on “baseline” spending, and get out of the way of the private economy. Absent Federal…interference…in our economy, spending and supply will align quickly as us Americans decide for ourselves what we will buy, what we will produce, and the price levels at which we will carry out the relevant exchanges.

Take note, also: that puts a premium on the Republican House and Senate caucuses standing firm on requiring spending cuts beginning next fiscal year and continuing into the out years as a quid pro quo for raising the debt ceiling this year.

Needs

In an editorial centered on the travails of a small pharmaceutical company, Novavax Inc, in developing medicines—here, particularly, Novavax’ Wuhan Virus vaccine in alternative to Pfizer’s and Moderna’s—there were these claims by then-NAIAD head Anthony Fauci in explaining the apparently deliberate regulatory delay in getting FDA approval:

We don’t need another vaccine.

And

It just seems rather unusual that people are waiting for something else when you have vaccines that have been given to now nine billion people[.]

This is another instance of Government presuming to dictate to us average Americans what our needs are instead of accepting that we know our needs and how to satisfy them much better than any Government bureaucrat.

Novavax’ alternative vaccine was 90.4% effective against symptomatic infection and offered 100% protection against moderate and severe illness, and now the company is on the verge of bankruptcy due to this governmental arrogance.

So much for medicine innovation.