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trumpHELL666's avatar

That's the BEST NEWS I've heard all day! 😃

The WORSE inflation gets, the HIGHER my crypto goes. Hahahahahaaaaa! Eeeeeeeeeeheheheheheeee! 😂😂😂🤣🤣😆🤣😆😁😃🤓😆😁🤣😃😃👍💪😂😂🤣🤣

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BCM2546's avatar

Yet, after $5 trillion of stimulus injections in 2020, economic growth is once again collapsing.

A Broken Transmission System

The desire to use “debt” to cure the “economic illness” seems logical, particularly when viewing it through the political lens of “getting re-elected.” However, the “cure” keeps the patient on “life support.”

The policies enacted, be it stimulus, quantitative easing, or bailout programs, fail to create sustainable economic growth because they are debt-based. Using debt to drag forward future consumption only leaves a void that must get filled in the future. Most importantly, the use of debt for non-productive investments, like a stimulus that has a one-time effect, is the debt service that then absorbs future revenues.

The view that “more money in people’s pockets” will drive up consumer spending, with a sustainable boost to GDP, is wrong. It has not happened in 40-years.

What gets missed is that things like temporary tax cuts, or one-time injections, do not create economic growth but merely reschedules it. The average American may fall for a near-term increase in their take-home pay, but any increased consumption today will be matched by a decrease tomorrow when the stimulus ends.

Consumer confidence continues to weaken despite a booming job market, higher wages, and a surging stock market

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