It’s the holiday season amid a once-in-a-lifetime pandemic, and Congress is hoping that by waving around a $2,000 stimulus check, American citizens will just accept it without looking any deeper.
I don’t know about you, but my freedom cannot be bought – especially not for $2,000.
And I’m definitely keeping an eye on our lawmakers’ questionable decisions… mainly, the ones destroying our economy…
Although many of tried to halt its progress, the stimulus will still happen at some point. And this latest round of checks and government spending is only going to make matters worse…
Right now, the U.S. national debt is at $27.5 trillion, which averages out to about $220,130 worth of debt per taxpaying citizen.
And as I’ve said before… Anyone who has taken an Economics 101 course knows that printing this much money and pushing it into the hands of American citizens is not a realistic solution, and it’s definitely not going to help the economy…
This week on the American Consequences podcast, I spoke to Neil Grossman, famed mathematician and former executive director at JPMorgan Chase, who explained that taking a look at the stock market today is incredibly misleading… yet that’s exactly what lawmakers are pointing to as proof that stimulus is working…
Recently, Neil wrote an article where he states that “bloated assets eventually explode,” meaning that the current state of the U.S. economy is poised for disaster.
“We’re spending money like a drunken sailor,” Neil wrote. And despite a soaring stock market, our economy is only hanging on by a thread.
As Neil explained, the money that’s being pumped into the economy is never really making it to Main Street…
That money is going to Wall Street, pushing up the stock market, but is not being redistributed into the rest of our economy.
What we’re actually seeing is investors taking on more risk in their investments because they know that the Fed will be there to just keep printing money.
The dance between Wall Street, the Fed, and now Congress is not a real means to stimulate the economy and assist the average American citizen. It’s just a way to get reelected in the future.
Neil goes on to say that the future generations who will eventually partake in the U.S. economy – meaning young people as they become employed – are simply set up to fail.
Assets need to grow naturally, and future generations should feel safe enough to start investing. But how can they when they see government spending go through the roof, and the only assets that have any real returns are the ones that also have high risk?
It’s abundantly clear that Congress and the Fed do not care about fixing the U.S. economy… or do not know how to.
Small businesses and restaurants are suffering while big-box retail stores have largely been unimpacted. You can still pack a Target with checkout lines down the aisles, but you can’t eat outside at a local sandwich shop while sitting six feet apart?
On this week’s podcast episode, Phil Kerpen, president of American Commitment, noted that coronavirus cases are at an all-time high in California, despite massively increased lockdowns.
He went on to show that these government mandates are not stopping the spread, but are simply destroying the economy.
At this point, lawmakers have completely abandoned any real science, reasoning, or basic economic principles…
In the near term, the markets may be OK because the government is throwing everything at them. But all economists know that we can’t sustain this as a means of real growth.
At what point do we stand up and acknowledge that these shortsighted government policies may be causing more damage than the virus itself?
History will tell us that this was not the correct way to go. But Congress probably hopes we can overlook that when the next wave of proposed stimulus checks reaches five digits.
You can listen to both full interviews on the American Consequences podcast here.
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Executive Editor, American Consequences
With the Editorial Staff
January 2, 2021