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Live Life Better - Inflation

Updated: Jun 1



Since Biden took office, he has injected $3,000,000,000,000 into the US economy, a substantial amount that was not earned. The result? A minimal increase in productivity is a typical outcome of Socialism. This approach resembles countries like China and Russia, which have adopted oligarchical Capitalism in their previously failing centrally planned Socialist economies. Debt and life-changing inflation will not make life better for most Americans.


Look at the INFLATION UNDER BIDEN above. When Biden took office, inflation was 1.4%, well under the 2% target, a forever-increasing flat tax imposed on us, The People. Inflation is a compound factor; if inflation this year leads to higher prices, those higher prices are the starting point for next year's inflation. So, it is a forever-growing percentage of our wealth and buying power. Theoretically, property, like owning a home, is a hedge against inflation as the home's value tends to rise with inflation.


Consider the INFLATION UNDER BIDEN. When Biden took office, inflation was 1.4%, comfortably under the 2% target. However, inflation is a compound factor; if it leads to higher prices this year, those higher prices become the starting point for next year's inflation. Inflation is a perpetual drain on our wealth and buying power. Theoretically, property, like owning a home, is a hedge against inflation as the home's value tends to rise with inflation. However, any new home you buy will cost significantly more; adding home loan interest at a 4 to 5% higher rate makes your payments substantially higher, eroding the value of your investment.


Look at the debt chart below: all the debt with interest and all the always-rising, never-falling prices represent the Government's failure to protect the American people; it is UNCONSTITUTIONAL !!!


Inflation - a Socialist Flat Tax

Inflation, a perpetual price hike, is a form of flat tax that spares no one, from the destitute on the streets to the wealthy in their mansions. Yet, it disproportionately affects the impoverished, pushing them further into reliance on dwindling charitable giving, which has plummeted from 10% to 2.5% over the past half-century, and unsustainable government socialism (a universally failed experiment).


Take a moment to absorb the chart below. The PUBLIC DEBT AS A PERCENTAGE OF GDP doesn't surge due to price hikes; it escalates because the nation's debt outpaces its taxable productivity and, therefore, the ability to curb unsustainable debt. The practice of 'Printing money' is the root cause of our inflation and a grave threat to our Democracy,

misunderstood mainly by We The People. This debt, coupled with interest and higher inflationary prices, is an undemocratic flat tax borne by We The People. If we grasped the reality, we would never elect representatives who would exacerbate our plight. The truth is hard to swallow, but it's the truth!


The problem with socialism is that you eventually run out of other people's money.

Prices, Debt, and Interest Payments Forever

Is this the future you want? Look at how little debt/productivity we experienced in World War I and then the downward trajectory we were paying it off until the next crisis, The Great Depression, followed on its heels by World War II, which we paid off by the time John F. Kennedy was assassinated in Dallas, President Lyndon Johnson then put the Democratic Party politics on course to buy votes with socialist spending even a Republican President abandoned the Gold Standard in 1971. Even though the 1960s political events started the great American decline, the 1960s witnessed America's greatness by accomplishing JFK's challenge to land a man on the moon while lowering our debt to levels not seen before the Great Depression. Until the Great Recession at the beginning of President Obama's administration, the American people showed a strong will to reduce debt moving forward. That will is gone. We have lost trust in our Government's moral fiber; if the Government can so easily bail out Wall Street, it can also bail out the US, THE PEOPLE. The US is rich and powerful; all we need to do is distribute the wealth, Socialism!

President Richard Nixon's actions in 1971 to end dollar convertibility to gold and implement wage/price controls were intended to address the international dilemma of a looming gold run and the domestic inflation problem.

How did this work out for the US, The People?


This opened the door for more Democrat Socialist spending to this day. Even the Great Recession/Stimulus Bailouts of 2008 were caused by socialist policy trying to put less prosperous people in a home.


Solutions?

Addressing the issues of inflation and national debt issues requires a multifaceted approach that includes fiscal and monetary policy interventions. Here are some suggested potential strategies:


Transparency in Government Spending

The Government should provide clear and detailed continuous online projections and reports on spending taxpayer money and solicit opinions and ideas from the US, The People, on reducing the national debt. This will build social media online trust with the public and ensure that funds are used responsibly. The US, The People whose hard-earned money is being spent, should at any time have the ability to vote for change that the Government must address. Some want to see the US, The People, change to a parliamentary government through a compromise where more diverse opinions can affect more thoughtful and immediate action. The least we can do is take responsibility for managing our money. We owe this to our children.


Implement Fiscal Responsibility Measures

The Government should strive to balance the budget and reduce the national debt. To reduce the national debt, the size and work of Government must be made more efficient. Government operations are never as innovative and efficient as our free market. Therefore, raising taxes on the rich to spend more on government operations is never a good idea. Instead, government operations should be moved into the private sector. We, The People, must get involved when the budget or debt exceeds 50% of GDP in peacetime until a balanced budget and debt reduction are achieved.


The Government's job is to contract with the best free market product/service and transparently measure and report the project's contract terms and successes/failures to We, The People. We are working to pay the expenses, debt, and interest. The Government is of the people, by the people, and for the people.


Eliminate Impersonal Political Spending

Have you ever trusted another person to spend your hard-earned money for you? How did that work out for you? You are more careful and responsible with your money than anyone else is. Politics must cost every person enough to "put your money where your mouth is" to trigger the same magical innovation and efficiency as free market capitalism. American capitalism should consider a flat tax before increasing the tax rate for wealthier Americans. Every voting American should feel the cost of government spending. Every person must feel the cost of government spending.


Our founding fathers were not perfect. The US Constitution needed to be sold to the American people. It was a brave and bold idea in a world where slavery was legal and common. The US declared, "All Men are Created Equal." How were we to sell the people on the Constitution? Undoubtedly, the vast mechanisms provided in the Constitution would someday correct the need for unconstitutional political spending. It should be UNCONSTITUTIONAL !!!


Paying for votes was baked into the Constitution from the beginning. However, America has progressed. It is time to eliminate representational political spending. It is out of control and hurts all Americans. It is an existential threat to our nation. With internet speed, blockchain security, and prompt engineering AI, we can achieve a more perfect democracy by authorizing government spending by electronic vote.


Restore, Modernize American Capitalism

Throughout human history, whenever pure Socialism failed, capitalism came to the rescue. The Russians and the Chinese turned to centrally controlled capitalism to avoid bankruptcy. China planned to use capitalism until it perfected its ideological socialist economy. Today, China can not end capitalism; it is considered necessary to support socialism long-term, maybe forever. One fact is clear: classic American free market capitalism is superior to centrally controlled capitalism. The US needs to reverse the trend to direct its capitalism centrally. The other large nations of the world either use oligarch capitalism or a democratic socialism-capitalist mix. America leads the free world, but we can live better lives. Make America Great Again.


Classical American Capitalism is the most innovative and efficient means of organizing a productive, prosperous market: Free Market Capitalism. However, since 1970, the US has progressed from classical American Capitalism to something that looks more like a democratic socialism-capitalist mix. Social media has taken over our representative Government's political debate, which used to lead us to democratic compromise. A minority in the media controls American spending policy. Today, political opinion to costly societal change happens in minutes, days, and weeks. It is time for us, We The People, to vote and hear our opinion at the same speed as social media, especially when it is our hard-earned money.


Promote Economic Growth

The Government can stimulate economic growth by lowering taxes and fostering a business-friendly environment. This could involve cutting red tape, reducing regulation, promoting entrepreneurship, and ensuring re-election by having the best private American businesses perform government work.


Reform of Welfare Programs

Welfare programs should be reformed to encourage recipients to become self-sufficient. This could involve encouraging education and job training programs the private sector provides in return for tax relief.


Regulation of Financial Institutions

Stricter regulation of financial institutions can help prevent risky behavior that leads to economic crises.


Conclusion

Remember, it's essential to elect representatives who understand the intricacies of these issues and are committed to implementing sound economic policies. In today’s complex and fast-moving world, our Government needs Constitutional checks and balances for our laws and our money. Please do it for future Americans.

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