First let me say that I haven’t caused any of this. So don’t blame me when the depression hits. I am just telling the truth about why the economy is doomed. I am free to do that because this web site generates absolutely no income for me or anyone else.
The biggest issue we face in the United States is that there is no way to recover from the coming depression. The free market system has largely been replaced with a system of top down socialism that is passed off as free enterprise. Contrary to popular belief things like adding more money or fiscal stimulus will not cause an economic recovery. Only free market influences can turn an economy around. Those influences are not only absent, they are being discourage. How and when did the Great Depression end? New business investment started increasing immediately when Roosevelt died. As soon as it was clear that the country’s movement toward socialism had ended, the recovery was underway.
The depression will be very bad because its cause is many decades of central economic planning. Central economic planning guarantees the the economy’s resources become increasingly inefficiently allocated as time goes on. The process of out with the old and in with the new is disabled. After over forty years of constant stimulus, the country’s economic resources are so inefficiently allocated that forward progress is not possible. So, the economy will collapse. There is as much certainty in this as there is in knowing that dropping a pinch of salt in your automobile’s gas tank every day will destroy the engine.
There is not one politician in the country suggesting anything but more central economic planning. The president of the United States is badgering the Federal Reserve Chairman, who is defined in economic theory as 100% objective, into doing more in the spirit of central economic planning. What is the trade war other than United States central planners warring with Chinese central planners? The ordinary citizens of both countries lose either way.
The coming depression will be life changing. The damage will worsen as time progresses. As more central economic planning is initiated troubles will get even worse. With free market influences being absent, the only path the economy can take is not a good one. Central economic planning caused the collapse of the old Soviet Union. The United States will have a similar fate.
The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.
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