The economy, at least from the perspective of the middle class, appears to be in chaos.
Middle-class homemakers who spend household income are seeing their purchasing power shrink, their choices disappearing, and more of their time consumed stretching the family budgets. Expect Christmas shopping to be a disappointment.
These problems are either not reported by the MSM or are masked by aggregate statistics like price inflation, i.e., the Consumer Price Index, low unemployment, wage increases, and extremely high stock markets and real estate, especially housing prices. These are nothing but feel-good stats made for people to feel less nervous.
Anyone outside of the wealthy northern come-heres can see there is real economic suffering. Small businesses are hurting and going out of business. Based on Help Wanted signs I drive by every day, it is extremely difficult to hire employees or purchase inputs. Local restaurants recently are noting the difficulty in getting basics such as chicken.
Nationally, businesses are finding roadblocks throughout their supply chains, primarily because of lockdowns and covid restrictions. This government roadblock to economic life is epitomized by the five hundred thousand shipping containers stuck off the port of Long Beach, California. Meanwhile, domestic inventories are dwindling for everything from cars and houses to mayonnaise.
Biden and Grifters
The actions of Biden’s Fed have been a force against the economy. Printing money has given some signs of prosperity, but its main known effect tangible effects are higher prices, malinvestment, and more wealth redistributed from the middle class.
The bottom line, the central bank needs to stop its policy of propping up the markets for government bonds and home mortgages and the perverse effects it is creating on the general loan market in the form of ultralow interest rates. Ending assets purchases by the Fed would limit the damage, and would make stocks, bonds, and homes more affordable for Americans.
The government’s policy of lockdowns and restrictions have gutted the US and world economies.
Why are so many cargo ships sitting waiting for unloading? Why are others going unfilled in the first place? Why aren’t truckers driving products to market? Why isn’t the product being placed on shelves? In many cases, workers are not available or are unwilling to comply with covid restrictions and requirements. Production is basically at a standstill. Just look across the bay, the new car lots are empty.
More grift. Special unemployment benefits and stimulus checks from the government mean that not working pays more than working, plus more leisure time for those that accept being on the public dole. Fast food places are offering 50 percent higher than minimum wage for fourteen-year-old kids, and they are still having trouble attracting workers.
The bottlenecks, empty shelves, business closures, reduced hours, and “worker wanted” signs are not the direct result of price controls nor are they the fault of the market economy. Basically, prices need to rise to temper supply and demand–entrepreneurs can’t work in an environment dominated by government interventions and heightened uncertainty.
Many more small businesses will shutter because they cannot find and maintain a workforce through the maze of restrictions of unemployment subsidies.
Let’s face it, nobody wants to work anymore.” The federal government, almost by design, is what is killing small businesses.
It should be clear that the cause of our new economic problems is massive across-the-board government intervention. The solution is to remove those government interventions.
This economic crisis is of the government’s making. Economic statistics and stock markets (led by a small number of super winners from the lockdowns, such as drug companies) have glossed over the real pain. We must end the interventions, the Fed’s inflationary policy, and the restrictions and subsidies on production and consumption.
This may help to restore the market economy to a functioning state. Or it may be too little too late.