Republicans and Democrats are debating what to include in yet another federal coronavirus relief bill. Meanwhile, the states are in various stages of opened up or locked down, with state and local politicians regulating the minutiae of our interactions right down to what constitutes a meal in order to determine which establishments may serve alcoholic beverages.
The politicians all need to stop. Just stop.
Senate Republicans have proposed a new $1 trillion dollar spending plan. Democratic House Speaker Nancy Pelosi (D-Calif.) wants a $3 trillion bill. Neither plan would stimulate our economy in the short run, but both would make the economy worse in the long run.
The U.S. economy is stagnating because of COVID-19 and the state and local shutdown and limited-reopening restrictions.
In a sense, some of this stagnation is optimal, given the existence of COVID-19. It poses a health risk to all Americans and a more significant risk to older people and people with preexisting conditions. Economic activities that consumers perceived as most risky were going to contract in the short run even without any government prohibitions.