For the good of small businesses across the country, let’s hope the media is correct. Can you imagine the riots if the press is wrong? As evidenced in Minneapolis in May, law enforcement is either inadequate or called off. If private citizens step up, they are called “far right,” or “white supremacists,” or “fascists.” Capitalism has created so much wealth that these babies have the luxury of promoting its demise. It’s amazing that a country can be held hostage by such a tiny group that we all fear a successful court challenge by the “Trump Team.”
I was in Fareway to get some Swiss cheese. The price had gone from $6 to $7.50 per pound. A friend with a body shop, when I asked how business was going in deer damage season, said most hits were totaled because parts are too high priced to repair a car.
I had a Fiat 124 sedan as a teenager. It cost $1,875 (and weighed that same number in pounds). A lady slammed on her brakes for a left turn with no turn signal. I swerved but still creased the side of the car from headlight to tail light. It was repairable. Consider all the mini computers and electric motors, ten-way adjustable seats and so forth in a modern car. A headlight for a Cadillac my friend was fixing cost $2,800.
The $600 unemployment subsidy drove countless workers to choose not to work. The additional $1,200 cash payment in the works today is claimed to be essential by Democrats and Republicans. Any denier is branded as heartless. Republicans who brand themselves as fiscal conservatives denounce Democrats for delaying stimulus payments. The “forgivable” loans in the Paycheck Protection Program are hilarious. Do people really consider them loans?
If you are a farmer and have corn to sell, you watch the markets for clues when to sell. If the USDA comes out with a report with surprisingly high corn supplies, the price goes down. This story illustrates what is going on with the prices consumers are paying today. There are two factors that determine price. The value of the product and the value of the money. Supplies of either one impact price.
The Fed has increased the number of dollars in circulation 27.8% in the last eight months. That means the value of the money we have has gone down by that much.
If we were talking about the corn market, that decrease in value would equate to a price drop from $3.50 per bushel to $2.53 per bushel. A corn farmer would lose a lot of sleep over that.
If you add the increased costs associated with borrowing money we don’t need simply because of artificially low interest rates, the waste in our economy is accentuated along with the devaluation of our savings.
While the losses to riots were a rallying call for Trump supporters, those losses were tiny compared to the damage done by money printing and bailouts as a means to bribe voters.
Government doesn’t look at the world like a family trying to make ends meet. It looks at us like the goose that laid the golden egg. They will keep us alive to fund the projects they convince us are essential as a way to preserve their jobs and luxurious lifestyles. Our drop in actual income is fuel for Marxist evolution.