Relax. Omicron Isn’t Going to Take Down the Economy.

Relax. Omicron Isn’t Going to Take Down the Economy.

Covid-19 continues to call the shots in our economy. This past summer, the Delta variant slowed growth and juiced up inflation. After Delta receded, growth rebounded. With the Omicron variant now spreading across the globe, the next few weeks will give us a sense of how much economic peril lies ahead.

While today’s Consumer Price Index report showed inflation rose in November to 6.8 percent for the previous 12 months, there’s compelling evidence that inflation has peaked. Even with the risks of Omicron and other variants to come, there’s reason for optimism that the economy will return to full employment with comfortably low inflation by this time next year.

Booming holiday sales are a clear sign of the economy’s resilience. So far, sales couldn’t be better. It is almost certain that spending on holiday gifts will increase at a double-digit pace over last year (a none-too-shabby year for sales in its own right). Some of the sales strength reflects higher prices. But even after inflation is accounted for, this holiday season may end up among the best, if not the best, ever.

American families should let loose this holiday season. Why? For one thing, a quickly improving job market that has created well