Will The World Embrace Austerity Measures? Americans paid off a record $108 Billion in Credit Card Debt in 2020 – May 29, 2021,

It comes as no surprise to most people, that the average person who works for a living hates debt. What’s not understood is why America’s working-class still wants a big ole government? Do Americans really want a big government or is it a question that most Americans don’t understand the correlation between a big government and poverty.

Do Americans understand that the Government raises the cost of living?

Austerity measures are shrinking the size of government while raising taxes, why I write so much about austerity measures is that it usually leads to lower taxes in the long term. Because if people have to pay for government spending out of pocket, it tends to change voting patterns.

The cost of living rises via the inflation tax, and how it works is the government makes it more expensive to operate a private business which forces private businesses to pass those additional costs to the consumers. In Cuba as an example if you’re dumb enough to start a corporation there, not only does the Cuban government basically own your business, you also pay a ridiculous tax rate.

So because of all of these costs, it’s hard for the Cuban government to generate any tax revenue. A lot of people think that Cuba is poor because of the U.S embargo on Cuba, but no, Cuba is poor because the Cuban people and anyone dumb enough to do business in Cuba pay for their governments’ permanent austerity measures.

It’s hard for most people to grasp that taxation is theft and the only reason anyone pays taxes is because of how creative governments are with making people pay taxes. If your governments’ public sector debt continues to grow and grow, year after year n your government isn’t defaulting, it means its people are paying the inflation tax.

In Cuba, their government has a hard time finding any money anywhere, so often what happens is that Cuba will openly default on its debt obligations. Cuba defaulted on its China debt, it defaulted on its Mexico debt, its debt was forgiven by Russia, the list goes on and on, however at the very least, Cuba defaults. In the West, because we have freer markets, we’re constantly being rewarded with even more debt, which the poor and middle class pay for with debased currencies.

But now that the cost of living for Americans has gone down and their incomes in some instances up, the first thing on many Americans’ minds is to pay down debt? Which makes you wonder if Americans would rid themselves of government they didn’t need if they understood that the reason they’re in debt, to begin with, is that their cost of living is going up because of the amount of their paycheck that’s being funneled to the various levels of governments.

In Cuba, they can’t hold elections to get rid of the current regime, because if Cubans had a choice, they’d probably say thanks for the Revolution Fidel, but we want a better economic system. When people are forced to pay for Government honestly, they tend to shrink it.

Present Americans and most people in the Western World pay for their government with debased currency, in Cuba even though the government sets the value of its currency, it still defaults on its debt obligations and the end result is a permanent depression and permanent austerity measures!

Will the world embrace austerity measures? Of course not! But I argue it’s coming because the debt servicing and the cost of living is going to be very problematic in the years ahead and if consumer prices are constantly going up to pay for public sector debt, this will lead to accelerated poverty and not only talks of defaulting on the debt but a global reset, which by the way will not fix debt obligations.

As we all learn from Argentina, you can reset the currency all you want, but if the government doesn’t shrink in size the new currency will be plagued with the same problems that the old currency had. The fact that people are using their new found wealth to pa of debt, shows me that a lot of Americans hate the idea of a consumer debt driven economy.

Interesting times ahead!