Editorial #295 Inflation is a Secret Tax.
There are many games played by the Federal Reserve and the government that directly contradicts accepted economic principles, the golden rule and the Ten Commandments. The belief that government is trying to control inflation is one of those games.
Inflation is not the problem in our economy, it is only a symptom of the real problem. The real problem is the incompetent, dishonest bureaucrats who pretend to care about the inflation they created. All these bureaucratic games have only one objective and it is not to help the economy. It is to increase the amount of money in circulation, causing more taxable events, raising revenue for the treasury, to pay for all their spending.
The huge infusion of money from the paycheck protection program and infrastructural spending, has put more cash in our economy than ever before never, relative to the GDP. The problem is there is so much spending to buy votes, it is more profitable to stay home than work. This game is spawning an underground economy where people will work, but only if they are paid “under the table” cheating the economic system. Classic double dealing, almost being encouraged by politicians.
Adding insult to injury is their condescending attitude to the taxpayer. They complain the public is too stupid to do what they are supposed to do, when they implement their “half-baked solutions”. Bureaucrats are so out of touch, they fail to recognize the public is only reacting to their ridiculous strategy, like any smart chess player, immediately take advantage of any stupid move the opponent makes.
Government assumes the public is either ignorant or too apathetic to do anything about their shenanigans. Taxes are a disincentive to make money by penalizing success. A classic action of a socialist state.
The other myth: raising taxes on business is fair to the consumer and exacts revenge on “Big Business”. Their battle cry is: “Businesses should pay their fair share”. This vacuous logic comes from those who pay little or no taxes, not realizing they are advocating a hidden tax on themselves that sparks inflation. Any tax on business is a cost of goods, always paid by the consumer.
These are “the best of times and the worst of times”, with the wise always realizing now is the only time we have. Past moments gone and future moments are yet to come. The only thing we can do is make the best “chess moves” we can when given the opportunity in the here and now.
We must learn to deal with government bureaucracy as it is as inevitable as death. It is like praying for rain. We pray in thanksgiving for our God given wisdom, intellect and courage that informs us what to do if it doesn’t rain. Not everyone will go broke, if it doesn’t, and we must learn how to play this game with incompetent bureaucrats. We pray in thanksgiving to God, for all the gifts we have received during our short time on earth, trying to make the world a better place in these “the best of times and the worst of times”.
PS: If you do go to church and pray for rain, always bring an umbrella!
This is Keith Kube wishing you the best in making our world a better place.
Keith has a regular commentary on WJAG 780 radio at 7:40 on Tuesday and Thursday mornings. Check his website www.keithkube.com for past editorials.