Wednesday, January 20, 2021

Stimulus Economy

-"C'mon, kid! Give me a break? I'm giving you the first one free!"

No, this is not some second rate crime show dialogue. Because within it, in plain sight, is a truth. One of today's problems, is deeper discussion. One could conclude on face value that there is no free lunch. Can't argue with that conclusion. Dig deeper. What is the offer? If it is marijuana, only a very small percentage of recipients will be negatively effected. This opens another argument - gateway to drugs. This is absolutely true. The odds are that almost anyone consuming other classifications of drugs, will be effected negatively. Dear Reader, this is not Evolution preaching. We used the above as a metaphor. It is only in relationship to the thinking of the new Biden administration. Here at Evolution, we see it as the same old same old.

If I asked you, what is the fastest growing sector in America? What would you say?

Rising Sector

POVERTY! There are 39.5 million Americans that live below the poverty level. Breaking down that number finds that there are over 12 million kids. This bodes poorly for the future US economy and innovation. Teachers feel the pain of the situation. However, in their empathy, they offer ideas that center around failure. They tell their students that if you feel that you can't make it, seek help. The helpline is government assistance. This is not teaching, but developing dependency. I'm all for the free lunch program and after school activities, but consider where this has gone. Kids learn to game the system for free wireless, free phones, free Obamacare, free food assistance, free rental assistance, utility assistance, even homeowner relief. The trails ends for now at government contracting. They don't learn how these helplines are paid for. They don't learn self-reliance. The founding fathers could not relate to today's government and what is happening in our schools.

How did this begin?

This is the central question. It happened piece-meal. The cold war that had fighting was in Korea. The close proximity of Japan resulted in Japan receiving an abundance of aid. This recharged their economy. Japan exported toys to the US. Then, they took advantage of the foolish, greedy idea of US car executives - planned obsolescence. US manufacturers thought that by planning the breakdown of parts, we could sell more, maybe even more cars? The Marshall Plan for Europe acted the same way. Once, the European economies returned, they sought to expand their market. They did. They dumped steel, and boatloads of their stuff on our shore. This began US deficits. Then, US producers who were always fighting unions, found a new technique to combat workers. Move the plant! Northern factories went south to non-unions states. Blacks were the first group in society to feel the pain. It would expand to all. Americans, with their resiliency and self-reliance developed the service economy. The pay was poor, but it paid the bills. Maybe something better will emerge. It didn't. Producers got Congress to outsource their business without ramifications like tariffs. This is what is killing the US economy, our standard of living and our future. Government responded in a piece-meal fashion. The band-aid was stimulus. Stimulus is medicine to get by. It has a time limit. When the cash is spent, it is expired! The root cause of our economic problems lies in the fact that Congress has not protected the general welfare. Any import should be taxed by tariffs. Any US imports should be taxed too. The tax should be high enough to protect a similar US producing concern. All foreign nations use protectionism, especially with state sponsored entities. This is where it began. This is what we need to address. Government assistance is not an economic economy!

2 Other Fears...

Like I stated above and we have seen in the past, stimulus is a band-aid. The fear that I now feel is the "give me and I want" people will use the present mood to push their small minded ideas. The first, is cancelling student loan debt. The figure is past one trillion. The proponents argue that the economy is being held back from growing because the ex-students have too much debt to purchase a car or a home. They are living at home and not starting families of their own. This is a half truth. Why? Let's look at  education loans. Students used this money for more than tuition. It was room and board. Many bought a car with the money. It became there life-style. I resent giving them an out from their debt. The choice like many before them was to delay self-gratification. Don't take free money. Get a job! If you have no other options, enter the military and utilize the GI Bill. Plan ahead! Take responsibility for your actions. I'm against anyone who is for cancelling student debt.

The other fear is related to the first. One could argue that the depreciating value of our currency and the decline in our standard of living could be traced to the Federal Reserve. Education cost many times more today than when I went to college. Inflation is the culprit. By the way, education has its own inflation. It is not just tuition, room and board. It is in degrees. At one time a college diploma could get you a leg up for a job. Then, the stakes were upped to a "Master Degree." Now, it is a PH-D. Anyway, the Federal Reserve is looking to expand their power. In doing so, they will destroy our democracy. Thomas Jefferson would lead the charge against these tyrannical, greedy idiots. They will seek to end cash as in a "cashless society." Idiots in Sweden are already changing their society to one where no one will accept cash for payment. This ends financial freedom. Future stimulus will be a credit card. The Fed does not want you to use cash. This is their first step and they already have a grab on our society. Use your smartphone at the checkout. Don't see money. Don't budget money. Don't understand the value of money. Don't use money! I say, "Give me Liberty or give me death!" End the Fed!