Fast economic growth solves problems. Slow growth causes them. China is trying to speed up growth again after Xi’s disastrous COVID-related mistakes while the Federal Reserve is raising interest rates and slamming on the brakes to fight inflation. China’s commitment to growth while the Fed goes in the opposite direction should worry Americans profoundly.
Fast growth is the foundation of progress. Electric vehicle and chip plants, roads and transportation systems get built and better jobs will come with them as President Biden’s infrastructure legislation will demonstrate. Fast growth eases transitions from old to new types of work. People are drawn from low wage jobs into better ones. Employers train employees in new skills to retain them. The belief that the Fed has to slow growth to fight inflation is poisonous because it makes change more difficult. It also is a narrative that always ends with inflation being…
