More Signs of Higher Prices and Economic Deflation: Calls for stronger labor rights in China – August 7, 2021

What people tend to forget about economic deflation are the financial decisions made by the private sector, whenever the government adds more regulations to an economy. There’s a risk vs. reward dynamic that most business people take into account whenever they launch a business.

The government often deflates the economy, because it imagines the regulations it passes will have minimal effect on innovation and productivity. It’s not to say anyone is against labor rights, but it’s the governments’ regulations that often prevent COMPETITION.

Most of the best people to start up a new company are people who were prior employees of a particular industry. If I’m employed as a “delivery worker” I’ll probably know more about the delivery business than my boss does. Now, what prevents me from competing with a former employer are either contracts or the costs of doing business lived by government regulations.

With every regulation passed, you’ll get fewer entrepreneurs, which ultimately stymies innovation and raises the cost of living. There are a lot of innovations in today’s economy that exist purely because of government. In America as an example, the Transportation Security Administration exists, September 11, 2001, there was a terrorist attack.

Now, for the record, on November 27, 1989 Pablo Escobar blew up Avianca Flight 203 simply because he and the Medellín drug cartel did not want to be extradited to America. The 9/11 terrorist attacks were targeted, Osama Bin Ladin admitted as much, but that TSA regulation is now a permanent fixture on the U.S economy.

This permanent fixture, raising the cost of living, Permanently, currently a new permanent regulation on the global economy is “climate change”. In the modern world, any time there is weather that can be politicized it’s attributed to this concept of man-made climate change and therefore all over the world, governments have found a new permanent regulation on the economy.

The cost of regulations is the suppression of innovation, fewer private citizens can now solve problems. What often compounds the regulatory problem are existing government initiatives, which in many ways include DEBASING the money supply.

In China, their private sector is doing quite well considering the conditions, but Cina does have a massive and very wasteful government. Instead of fixing aging dams, the Chinese government is focused on growing its military might? The Chinese worker has the right to demand whatever they want from their employer, but they should also have the right to QUIT their job and start their own business, so they can be the employer they want to use the government to create.

A Free market economy is inherently deflationary, you fight deflation by innovating, that’s how humanity got to where it is now. Now, when the economy deflates, your money is supposed to INFLATE, it’s the government that deflates the value of your money, when the economy deflates. The government debases the currency to force the employer into doing jobs that they don’t want to do, as more regulations equate to fewer EMPLOYERS.

Chinese regulators meet with delivery firms, call for stronger labour rights | Reuters.com

Interesting times ahead!