Numbers Show Economy is Recovering, but Washington Spending Won’t Help

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New numbers from the Commerce Department show the economy showed strong growth in the second quarter of the hear, with gross domestic product (GDP) at a seasonally adjusted annualized rate of 6.5 percent from April to June, besting the 6.3 percent growth rate from the first quarter. CEI Senior Fellow Ryan Young says vaccinations and deregulatory measures – not impending government spending – is what will aid that growth.

Statement by Ryan Young, CEI Senior Fellow:

“The economic recovery is continuing at a solid pace. Vaccinations are the key to keeping the recovery going, not more reckless deficit spending. The biggest current threat to the recovery is COVID’s delta variant. If it spreads widely, next quarter’s numbers will slow. If enough people are vaccinated and take other prudent measures to keep delta’s spread in check, we can avoid another lockdown, and the recovery will continue. More importantly, fewer people will get sick and possibly die an avoidable death.

“There is no need for a trillion-dollar infrastructure bill or the $3.5 trillion reconciliation bill. Instead, policymakers should enact reforms to help the recovery along. These include removing occupational licensing regulations that keep low-income and minority workers from getting good jobs, keeping inflation in check, lifting trade barriers that contribute to record prices for cars and houses, and easing Dodd-Frank-era financial regulations that impede access to capital for startups to grow. There are lots of ways to help the economy grow. Deficit spending is not one of them.”