Every action has an opposite and equal reaction. Newton was correct. But how right he will be determined by President Joe Biden’s idiocy and the massive spending bills he’s trying to push forward. More debt means higher payments, and more taxes mean more money to the government to pay those debts. Every action has an equal reaction.
Predictions of the outcome can be made but will never be fully realized until we’re in the middle of it. Massive spending can’t just be taken back. It would have to play itself out if the federal government would have to stop the future payments to the entities in the bill.
Inflation is already on the rise but what may be shocking is that it can, and likely will, go up again.
Senator Rand Paul (R-KY) has been trying to stop the government from getting large for some time and recalled when he spoke to Senator Mike Lee (R-UT) speaking 11 years ago about the size of the government and didn’t want to raise the debt ceiling without reform. Paul noted that the United States GDP is around 140% which means that debt is 40% above what the U.S. brings in. That’s precisely why the debt keeps rising. Paul said that it was around the point where Greece filed for bankruptcy and could not pay its debt.
“It is foolish and unwise for us to say, oh, there are no consequences because I think there will be consequences. And the number one we see now is inflation.”
Prices are rising well above what they once were. Canned food prices are almost double what they once were at grocery stores, and food prices are also increasing. Rent is skyrocketing after the eviction moratorium ended, and vehicle prices are as well.
Paul also said, “It’s hard to determine faith in the dollar. One way you can determine it is will people buy our bonds. And so, one of the indications that people lose faith in our currency is that when you borrow money, you see your bond prices rise and interest prices rise. And I think that’s coming.”
Unfortunately, that’s already here. Inflation is only going to get worse, and taxing the rich will only make commodity prices soar. There’s no doubt that the top 1% will make sure they get their money from the consumer equal or greater to the money the government takes from them. That’s how life works. The government says they’ll tax the rich, but they’re raising the prices for consumers.
Right now, interest rates are at 5%, and Paul said, “you cannot continue to borrow at this rate without ultimately suffering, perhaps an economic calamity.”
The federal government isn’t making this any better. More restrictions mean more loss for companies as they try to keep up with nationwide demand. Covid-19 vaccine mandates also aren’t helping. Biden’s administration needs to realize that when people are suffering, they need to help them, not hurt them. Reducing the weight of life on people will cause an uptick in productivity and solve much of the economic crisis that’s already beginning to show itself.