Saturday, March 21, 2020

President Trump, The American Economy and COVID-19 Panic

I am 73 years old. I have followed politics since 1968. I distrust anything and everything government has done, is doing, and will ever do. Having said that I make this observation.

The problem with government imposed intrusions into American life is that they never end. I was disgusted and angered when Richard Nixon used emergency executive power to impose outrageous restrictions on American life. The problem was that OPEC was manipulating oil prices to the point that the American economy hovered near collapse. Prices of goods and services were skyrocketing, gasoline tanks at stations were empty, lines of cars waiting for gas stretched for miles, and grocery stores were empty of everyday items; bread, milk, and toilet paper. Panic buying was even more out of control than it is today. (The picture is a gas station in 1974 in Brooklyn, NY.)

President Nixon imposed wage control, preventing employers from raising salaries. He imposed rent restrictions, preventing landlords from raising rents to cover increases in operating costs. He froze prices on basically everything in the country; food, clothing, gasoline, restaurant prices, car repairs, everything. He also imposed the infamous fifty-five mph national speed limit with the stated goal of maximizing miles per gallon for motor vehicles! I remember thinking, "Hell, I can run faster than this! " All these impositions were enforced at the federal level! Essentially, Nixon froze the American economy solid as an iceberg! Nothing went up and nothing went down.

My conservative blood was boiling but whatcha gonna do? The important takeaway is that after OPEC lost the fight President Nixon rescinded all of it! I had never known a government regulation or program to end! (Don't get me started on that subject!) My respect for Nixon went through the roof with the rescission! (We can discuss Watergate some other day.) Nixon took over an out of control and panic driven society. In my opinion he prevented a major collapse of American and perhaps worldwide economies.

This COVID-19 thing appears to be a real crisis and emergency. History will tell us if COVID will be "worse" than SARS, MERS, or the annual flu seasons. I absolutely believe that President Trump is taking appropriate actions to blunt the impact of the Chinese virus. I will give President Trump a pass until the crisis ends. If he rescinds these government intrusions then my respect (already high) will soar. We shall see!

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