Do you find yourself putting in the effort at work, saving diligently, and investing with the goal of building enduring wealth?
If that’s the case, you might have realized there’s a disconnect between the conventional wisdom regarding the economy and financial markets and your own experiences. There is likely much more at play than mere numbers.
The essence of economics revolves around prices—their determination and the subsequent human responses. This dynamic is crucial in understanding how prices adjust to market supply and demand.
Through experience, consumers learn to recognize what constitutes a good deal, adjusting their behavior accordingly. Likewise, sellers experiment to identify the most effective pricing for their products, optimizing their profit margins based on sales.
For example, consider a scenario where airfare is affordable; a father may choose to buy long-distance tickets for an exotic family vacation. Contrastingly, if prices soar, he might opt for a road trip and camping at a national park. Both experiences would create cherished family memories, yet prices play a crucial role in guiding these choices.
Indeed, prices and the responses they invoke are central to most voluntary exchanges aimed at satisfying wants and needs. Although you might have an ample collection of socks, a ‘buy one get one free’ offer could still tempt you to purchase more.
Your dependable old car might serve its purpose well, yet the allure of a new model boasting the latest features may beckon you. But the real question is: how much do you desire it? Are you willing to commit to a $1,000 per month payment? At such a cost, you’d be sacrificing quite a few enjoyable steak dinners.
The takeaway is that prices and incentives are significant. Furthermore, shifts in factors that elevate or diminish prices—such as interest rates or regulatory policies—can greatly influence human behavior.
This insight is vital, and government policymakers are well aware. By manipulating prices, they can steer societal behavior.
Corruption’s Impact on Prices
It’s important to acknowledge that government actions often lead to distorted prices to siphon resources from the economy and reshape society in unnatural ways. For instance, California’s Assembly Bill No. 205, signed into law by Governor Newsom in 2022, mandates that utilities impose escalating base fees based on income brackets.
A recent proposal would require higher-income individuals to pay a base charge exceeding 400% that of lower-income earners, adding yet another layer to the actual usage rate.
Is it justifiable to penalize those earning higher incomes? Does the government truly manage resources more effectively than those who earn them?
In Sacramento, and similarly in Washington through federal income tax policies, the prevailing belief seems to be yes.
This corruption of prices also consolidates power among central planners and decision-makers. The allure of wealth they gain from this power can be intoxicating, leading to an insatiable appetite for more.
Add to this the reality that struggling and failing governments can maintain their authority only by tightening control over their constituents—including you. Mandates regulating how you allocate your time and resources are born from desperation, yet they persist.
Exorbitant taxes, endless fees, and currency debasement work collectively to extract capital from ordinary individuals and funnel it back to Washington. As we enter the late stages of decadence, such coercive measures are likely to intensify.
Currently, it seems almost impossible to undo the extensive corruption that has already taken root. Any efforts to address it are swiftly co-opted by central authorities, ultimately turned against the populace.
Tools for Manipulation
Consider the advancements in digital technology; while they present opportunities for liberation, they also expose a darker reality. Over the past two decades of the digital era, governments—including the U.S.—have acquired powerful tools for control.
Edward Snowden revealed a decade ago the broad surveillance system designed to monitor citizens. Rather than being hailed as a whistleblower, he faced espionage charges and was exiled to Russia.
Since then, the exploitation of digital technologies for monitoring and controlling political frameworks has escalated dramatically. Innovations ranging from social media to cryptocurrencies and artificial intelligence have been rapidly infiltrated by agencies like the FBI, CIA, IRS, Homeland Security, and the Federal Reserve.
These innovations can be misused to target certain groups, manipulate elections, and suppress genuine debate—ultimately restricting freedoms, mandating vaccinations, and even closing places of worship.
A wealth of evidence reveals these are not mere conspiracy theories; they represent authentic, calculated conspiracies. Powerful factions orchestrate these actions to strip you of your rights, seize your wealth, and dictate your life.
From the misleading narratives surrounding the transmission of the coronavirus to Hunter Biden’s laptop and Russiagate, these incidents were built on deception fostered by a collusion of media and unaccountable bureaucrats seeking to gain power.
Recent findings in the released Durham report corroborate what many have suspected all along: that Russiagate was an elaborate fabrication, created by the FBI and certain political insiders.
The Consequences of Corruption
The revelations from the Durham report are hardly surprising for anyone observing American political dynamics. Political corruption has woven itself into the fabric of everyday life.
Like confusing medical billing practices, it’s a commonplace issue. You can express outrage, voice complaints, but what change will ensue?
The IRS, for instance, has earned a reputation as an entity rife with questionable practices. In 2013, it famously targeted conservative groups, including the Tea Party, for costly and unnecessary audits.
Lois Lerner, the then-director overseeing tax-exempt entities, eventually apologized for her missteps, while President Obama deemed the IRS’s actions “intolerable and inexcusable.”
Yet, in a truly just system, the IRS would be disbanded, and its staff would be sent home, with an oversimplified flat tax replacing the convoluted tax code. This change would eliminate the politics and corruption that permeate the current system, undermining the very purpose of the tax code.
Given the IRS’s misuse of power, it’s hardly surprising that other government entities engage in similar abuses driven by political motives.
So, what conclusions can we draw?
Banana republics share common traits: a corrupt political elite, composed of both ‘elected’ officials and bureaucrats, who lie, cheat, and steal to consolidate authority and wealth. These nations operate with a corrupt currency and are burdened by massive deficits, often resorting to printing money to deceive the population.
All public amenities reflect this corruption, marred by graffiti and dysfunction. As societal corruption deepens, it increasingly erodes private wealth among citizens.
Ultimately, a society reaches its nadir when its powerless majority finds itself equally impoverished.
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Sincerely,
MN Gordon
for Economic Prism
