Let the good times roll
Let them knock you around
Let the good times roll
Let them make you a clown
– Good Times Roll, by The Cars
America’s Unfolding Drama Continues
The recent storming of the U.S. Capitol was not just an unusual incident; it was emblematic of a broader, troubling trend in America. Such chaos tends to arise in times of national decline, and the events of that day highlight the ongoing challenges within the nation.
Equally revealing is the exaggerated outrage from politicians eager to capitalize on the situation to bolster their own agendas. Chuck Schumer likened the event to Pearl Harbor, asserting it as a moment “in American history that will live forever in infamy.” Meanwhile, President-elect Joe Biden described it as “one of the darkest days in the history of our nation” and an “unprecedented assault on our democracy.”
However, the irony of their comments is often overlooked. Their descriptions may contain truth, but they fail to acknowledge the underlying issues—particularly regarding questionable election processes. This is, without doubt, the true assault on democracy that deserves scrutiny.
Yet, it is crucial to maintain proper perspective. A fraudulent election is not unexpected in a nation in decline. While we may find it troubling, it reflects deeper societal issues.
Moreover, it seems that many of the nation’s leaders remain oblivious to the realities at hand. Figures like Schumer, Pelosi, and McConnell appear to believe that removing Trump will automatically restore stability and prosperity. They are unaware of the more profound challenges that lie ahead.
The dynamics of wealth creation and its distribution are intricate and multifaceted. While discussions around these topics can often fall short, a simplified overview can offer valuable insights, particularly for those in Congress who may be reading this.
Where All Roads Lead
Numerous factors contribute to an economy’s overall health. Key elements include sound monetary policy, protection of private property, and adherence to the rule of law. Additionally, advancements in technology, demographic shifts, and the degree of international trade play significant roles. Interest rates, the credit cycle, and levels of public and private debt must also be considered.
When a nation’s population is youthful, its monetary systems are stable, and its institutions remain robust, economic growth is more achievable. Individuals enjoy relative freedom to pursue their ambitions as long as they do not harm others or infringe upon their rights.
However, similar to the progression of seasons, prosperity is often followed by decline. Initial growth gives way to decay and eventual stagnation.
Over time, government expansion results in increasingly restrictive laws and regulations. Corporate lobbyists exacerbate this decline, further complicating the legislative process with pay-to-play schemes that become the norm.
As a nation’s populace ages and governmental control intensifies, economic stagnation ensues. Pension systems become mismanaged, entrenched interests complicate progress, and barriers to entry multiply. The accumulation of legacy costs can lead institutions into disrepair.
Indeed, various factors contribute to economic decline, although they typically trace back to aging populations, bloated bureaucracy, counterfeit money, and excessive debt levels—both public and private. Once, GDP growth of 6 percent was typical; now, amidst these burdens, a mere 3 percent is considered a remarkable achievement.
Let the Good Times Roll
This convergence of unfavorable circumstances cannot be reversed through policy alone. The natural course must be followed: promises will be broken, institutions will falter, governments will default, and currencies will fail.
Those benefiting from the status quo will use all available means to resist these changes. Insiders may resort to manipulative financial strategies and currency devaluations to prolong the inevitable. Politicians will implement policies in a futile attempt to manage circumstances they cannot control.
Currently, the United States finds itself attempting to preserve its existing order by any means necessary. The Federal Reserve, for example, generates credit from thin air, lending it to the Treasury, which then allocates funds to defense contractors and favored industries—like the major banks.
Moreover, the Fed uses its capacity to create credit to suppress interest rates. Corporations with unsound financial practices exploit this cheap credit to refinance their debts. When this approach falls short, the Fed even buys corporate debt directly.
These policies distort the economy, concentrating wealth among insiders to the detriment of the workforce. After decades of such practices, workers and an increasingly unemployed population find themselves demanding their share.
The resulting economic disparities incite calls for redistributive measures. The Treasury responds by distributing stimulus checks to citizens and noncitizens alike, fostering a dependency on government support for survival.
In this environment, reckless economic theories, such as Modern Monetary Theory (MMT) and universal basic income (UBI), emerge to justify the untenable. The logic follows that if the government can bail out failing companies, why not extend aid to individuals in need?
These strategies reflect desperation, revealing a last-ditch effort to maintain the status quo. Yet, who truly benefits from this arrangement?
Not you!
Sincerely,
MN Gordon
for Economic Prism
