20 years of the growth of the state has led to clear and inevitable results: the competitive environment is distorted due to the binding of economic agents to the incentives of the state, the state causes a complete “squeeze” due to its large presence in the economy, in the financial markets and. in the real sector, funding government programs, public spending, and uncontrolled inflation. These economic policies have led to a 40-year boom, and rising taxes to increase government spending have forced businesses to cut back on spending and reduce their preferences. In other words, the government has decided to redistribute goods and money directly to consumers instead of increasing the demand to encourage growth-side businesses and producers to improve demand.
When the supply side feels good, healthy and healthy consumers feel good, increasing their preferences and opportunities, matching them with productivity and not having unreasonable expectations. Otherwise, by getting money before spending anything, consumers create distorted expectations and preferences, which eventually turn into inflation and deflation, painful blows that come in the form of returns for useless goods.
In order to avoid the “anger of the people” and not to lose stability, the authorities continue to increase unnecessary debts and redistribute more profits from active and destructive activities to inactive destroyers, because there are no other options that can be used in other situations. which you increase fees and strengthen the environment for those who are making your profits. In such cases, you are forced to continuously increase the debt because your choice is not to encourage production and efficiency, but to increase the fees by imposing more and more restrictions on producers.
To realize your “citizen concerns,” you are always in need of money, so you have no choice but to strengthen and increase your walls and increase your chances. It seems like a return to the Middle Ages, or at best to the 1800s, to almost bankrupt countries where the authorities spent a lot of money and tightened things up for those who really had money. This may have happened for a long time, but we all remember how it turned out in the end: the example of the French Revolution is a clear example of this.
The consequences of Cotillion in the broadest sense – getting access to the cheap economy of the very rich and closer to the budget supporter and the scarcity of things at a higher price – are inevitable in the “big country” with the increase of the middle and the expansion of redistribution, above all worsening the condition of ordinary citizens and small businesses. A look at the information is enough to confirm this and say goodbye to our assumptions about the power of the current “leftist-socialist” government.
Democrats have consistently hid the 3.5% unemployment rate, not to mention the same rate of participation in the labor force, which was recently over 60% and has not surpassed its 1977-1979 levels of 62.3%. And that many dysfunctional jobs, followed by global government shutdowns and high taxes, are driving up prices and making it worse for ordinary citizens and small businesses.
Average hourly adjusted earnings fell for the 18th consecutive month, down 3% from last year. This act was made shortly after the passage of the $1.9 trillion “stimulus” plan in March 2021. Well, the results of the “stimulus” are clear.
The loss of real income for Americans since the beginning of the Biden Administration was more than $4,000: the sharp increase in wage growth and inflation has cost the average American about $3,000 in annual purchases in addition to the loss of more than $1,000 due to loose monetary policy and rising interest rates. In other words, most Americans have become poorer by more than $4,000 during the Democrats’ tenure in the White House.
These are all external factors of inflation, which are caused by the uncontrolled increase in income to support government spending and deficits, as well as the increase in taxes and regulatory burdens on producers.
For example, more than 70% of small business owners say that inflation has reduced their margins, and 50% of them do not believe that inflation will slow down significantly until mid-2023, forcing them to cut costs, raise prices and reduce working hours. Microsoft, JP Morgan, GAP and other big businesses have also reduced staff and scaled back their financial plans. But small businesses can’t cut costs as efficiently as large companies, and they can’t find cheap financing, which puts small businesses and entrepreneurs at a high risk and helpless.
The FED needs to be more assertive in curbing inflation, not only by raising the federal funds rate, but also by reducing its $8.8 trillion deficit. Unfortunately, this is the reality and, in fact, the only way we can expect the government to do so. All other measures necessary to promote growth and development, such as reducing government spending, removing barriers, reducing taxes, suppressing social programs, and bringing the monetary policy to match economic growth, seem to be successful. Recent events in Britain have shown this clearly.
But there is hope for some reasonable alternatives if the Republicans, who now occupy almost half of the Senate, can be dedicated and persistent in stopping this uncontrolled growth that seems to be impossible and seems to have become the consensus of the Democratic Party.
The government cannot stop itself, but we, the voters and citizens, can stop it when we realize that the government is only a manager of the state’s resources, exercising the limits of its authority. The government has to deal with government officials who are increasing these powers all the time. This is why the developed world has created a competitive political environment with a system of checks and balances, why free societies are kept in their stability and immutability.
This is why people created democracy.
