It’s Not Just the USA The Economic Instability Is Global

[Manuel Tavares]

It’s Not Just the USA
The Economic Instability Is Global
By Paul Tolmachev
https://rayviolet.blogspot.com/2022/05/its-not-just-usa-economic-in...

The actions of the authorities in developed countries, essentially an extension of the Keynesian economic policy discourse, have brought the economies into disrepute.

These actions consist of immense stimulus and virtually unfunded government indexation of voter income in the face of expected impoverishment amid COVID, lockdowns, and other global problems.

The government is making money cheaper, just to maintain electoral support.

This leads to a dispersal of demand and a proliferation of zombie companies, it distorts the incentives for healthy competition, it reduces business efficiency, and it kills the innovation factor of economic growth.

Most importantly: it creates leverage – the dominance of needs over opportunities, demand over supply-in other words, it leads to dramatic market disequilibrium.

Before COVID times, such imbalances over the past 20 years were bought with new leverage, and the imbalances went away for a while, giving birth to inevitable new imbalances in the future.

The Austrian cycles perfectly describe this process, its starting points and its consequences. In fact, this leftist social agenda for buying electoral loyalty is a new political doctrine based on simplification, and most importantly, on the abolition of any concern for tomorrow.+++https://rayviolet.blogspot.com/2022/05/its-not-just-usa-economic-in...