London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

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.
Newsletter

Related Articles

0:00
0:00
Close
UK Prison Officer Sentenced for Inappropriate Conduct with Inmate
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
×