Cutting Government Spending Does NOT equate to a recession, however Keeping Government Regulations While Cutting Government Spending WILL lead to a Recession – October 17, 2022,
Via the current MODERN MONETARY THEORY, in which a lot of PRODUCTIVE people have accumulated a lot of wealth, global recessions, for the most part, SHOULD NOT exist. Humanity has INNOVATED to the point that governments of the world are in the way of PROGRESS. GMOs have ended world hunger, why we still have world hunger is that the world still believes in DICTATORS and BIG GOVERNMENTS.
As an example, the free market would love to fix Africa, but once you attempt to do business in Africa as a capitalist, you’ll soon figure out that African leaders and African VOTERS don’t want capitalists to DISRUPT their way of life. Poverty starts in the mind, and people have the RIGHT to imagine the world in any manner they wish.
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However, once you acquire COMMON ECONOMIC SENSE, you’ll quickly realize and understand that it’s actually the people you consider LEADERS that are in the way of human progress. A lot of humans Invest heavily in humans they imagine are SMARTER than they are. If let’s imagine for a moment, I think a politician is smarter than I am, and that politician says we need to stop these evil capitalists who are bringing electricity into our homes from making too much money.
I vote for these Left Wing politicians who promise to make those evil rich people pay their fair share, but it turns out these politicians know NOTHING about how energy is generated; I’m then stuck waiting for this low IQ politician or “leader” to find a solution to my standard of living problems. Sure those capitalists were making “too much money,” but at least energy to my home or gas for my car was cheap; why is it that this Left Wing politician I voted for can’t FORCE these low-life, evil capitalists from making so much money, while simultaneously improving my standard of living?
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When faced with this question, people who don’t understand basic economics will indeed repeat the same stupid VOTING behavior imagining a different result; if these people are under the thumb of a dictator, these people will rarely, if ever, say to themselves, give me liberty or give me death. Why is this, you ask? I argue it’s because of lack of USEFUL education, but truth be told, it could be ANYTHING, and I don’t put myself above people who are ignorant to what’s happening in the economy because without the knowledge I was afforded, I would think in the same way the commoner thinks, which is to wait on someone “smarter” than me to do my thinking for me.
The bottom line is that the leaders of your country have TOO MANY regulations on the economy, I don’t care if we’re bartering, using a gold standard or using fiat money, too many regulations on PRODUCTIVE PEOPLE will lead to a recession. I see a lot of people arguing that the central banks are creating the recession, others argue it’s the evil capitalists creating the recession, and some will say government spending is creating the recession.
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Although all arguments are valid, the root cause of inflation is REGULATIONS on economic activity. No PRODUCTIVE person wants a “boss” breathing down their neck, scrutinizing EVERYTHING they do. It’s not easy to be blamed for the problems of the world, and the moment PRODUCTIVE people feel like they’re not being appreciated, they’ll STOP being productive.
This post wasn’t written to get into the specifics. However, I want to point out to the reader that if the government CUTS spending but doesn’t cut regulations on economic activity the recession will QUICKLY spiral into a depression. So if you hear that government spending in your country is being cut but Austerity Measures or cutting government REGULATIONS on the economy is NOT being considered, I hope you understand with certainty that the economy is headed for a DEPRESSION!
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Interesting times ahead!