3. When Politicians Panicked: The New Coronavirus, Expert Opinion, and a Tragic Lapse of Reason. This excerpt examines the federal government's response, characterized as a partial command economy imposed after state lockdowns. John Tamny contends that Washington threw trillions of dollars at the collapse it subsidized, delaying recovery. He refutes the premise that cash handouts stimulate growth, stressing that economic dynamism comes from investment, not consumption. Attempts by commentators to nationalize investment and "freeze the economy" by propping up failing businesses were ultimately destructive. Tamny argues that had politicians done nothing, Americans would have adjusted naturally, allowing the resulting capital formation and investor trust to facilitate a rapid, organic recovery.
1918