Our federal spending taboo is holding back growth again

The job market softened slightly in July, and the stock market panicked, which is worrying. The risk now is recession, not inflation, because the latter continues to fall. 

The country badly needs a strong labor market to accommodate slowing consumer demand, mismatches in the labor force and new technologies that are transforming work. Growth also needs to be fast to meet dangerous challenges from Russia, China and Iran that will demand American resources. 

The U.S. could grow faster...