The American economy will make an “enormous” comeback after “tension” over the coronavirus pandemic fades, former Reagan administration economic adviser Art Laffer said on Wednesday.
“Right now, I think there are a lot of roadblocks in the economy, I mean, with the spike in new cases, hospitalizations, and deaths, I mean, obviously, there are going to be more shutdowns and they’re going to hurt the economy drastically,” Laffer told FOX Business’ “Mornings with Maria.”
Coming off the heels of Pfizer’s vaccine receiving a positive review by the Food and Drug Administration (FDA), Laffer projected an economic incline in 2021.
“Once you get into 2021, Maria, once you get there, let’s say, past April or May and the vaccines are starting to have an effect and they’re starting to relieve a lot of this tension, I think you’re going to see an enormously strong economy at the end of 2021, it’s going to be really really strong, no matter what people do,” Laffer said.
Documents released by U.S. regulators Tuesday confirmed that Pfizer and BioNTech’s COVID-19 vaccine was strongly protective against COVID-19 — offering the world’s first detailed look at the evidence behind the shots.
The FDA posted its analysis online even as across the Atlantic, Britain on Tuesday began vaccinating its oldest citizens with the Pfizer-BioNTech shots.
Pfizer and its German partner BioNTech previously reported the shots appear 95% effective at preventing mild to severe COVID-19 disease in a large, ongoing study.
Though Laffer expects a “strong economy” after the vaccine rolls out, he “hopes” it won’t get stifled by “regulation” and “taxation.”
“I just hope they don’t put so many new policies in by tax increases, regulatory policies, and all these other roadblocks that will really dampen the economic recovery that this country needs to have and should have,” Laffer said.
Laffer went on to say, “We need to plan ahead of time.. for black swan events. Not always waiting, act in a panic fashion once they do occur.”
Meanwhile, the Labor Department’s monthly payroll report, released Friday, also showed the unemployment rate fell to 6.7% from 6.9%. Economists surveyed by Refinitiv expected the report to show that unemployment dropped to 6.8% and the economy added 469,000 jobs.
The figures come amid a wave of coronavirus cases and the deadliest three-day stretch since the pandemic began earlier this year. More than 100,000 people are hospitalized in the U.S. and more than 210,000 new cases were reported on Thursday alone, according to data published by Johns Hopkins University.