How much is $31 trillion? Written out, that comes to 31,000,000,000,000, or 31 × 10¹². A mere one percent of that is $310 billion, which was the federal deficit alone in 2019.

For more, see: https://the-pipeline.org/the-column-repeal-the-16th-amendment

The article blames it on Modern Monetary Theory but no one ever looks at modern economics which bases growth on demand. It’s Keynesian theory with its underlying premise that growth occurs because of the demand side. It comes from Y=C+I+G and without that there’s nothing left.

If you want to understand how economies work never NEVER think of economic activity in terms of money. Economic activity depends on resources – land, labour and capital. If you think in terms of money you will never get it. Money is sometimes scarce but productive resources always are.

Activity isn’t intended to create “jobs”, it’s to create useful products that can be produced at a profit.

And how can productivity go up if we don’t leave it to the private sector?

Cannot happen. And as long as “growth” is based on the public sector neither value added per employee (ie productivity) or real wages can go up – on average that is – then earnings will collapse although those who get paid by governments will do all right relatively.

It’s going to be bad for a long long time, longer than you can imagine. Average earnings will simply have to stagnate.

From Instapundit:

Fed committed to getting inflation to 2% target, Barkin says. “The Federal Reserve is committed to getting inflation under control and returning it to the U.S. central bank’s 2% target, Richmond Fed President Thomas Barkin said on Wednesday, the latest in a litany of policymakers voicing determination to rein in price increases running at the highest pace in four decades.”

Prices will already have moved up more than 10%. The price increase is permanent. You won’t get your purchasing power back when the inflation RATE goes down unless your income goes up at the same rate.

People are so trusting and so stupid.