U.S. always has deficits and inflation, and is governed by someone

It doesn’t make sense to be against the federal government, deficits or inflation. They always exist and can have good as well as bad effects on us. It depends on who is running the federal government, who is causing a deficit and who is driving prices up by buying real estate, nutritious food, advanced education, and all the things that affect a person’s standard of living.

The right-wing attempt to equate freedom with a lack of federal government suggests a false premise and detracts from a rational discussion of society’s problems. Fact is, all nations are always governed by someone, elected or not. All the time. It’s true of Mexico, Russia, Norway and the U.S.

The issue isn’t government or no government, big government or small government — it’s good or bad government. It’s who’s governing, how did they get their power, in whose interests are they governing, and what are the results of their governing?

If a democratically elected government is unwilling or unable to govern effectively, then an authoritarian group can seize control and govern according to its own powers and desires. A nation in chaos is still a governed society. It’s just by the wrong people, for the wrong purposes, and with disastrous consequences.

Yes, government is often the cause of our major problems, but it is the solution as well. Government is the cause of our problems when it chooses to ignore or even distort the science behind global warming. But only an informed and active government can be the catalyst for solving the problem of excessive greenhouse gases.

Republicans also have learned that if they can make enough Americans in swing states dislike the federal government they won’t even vote. Then, a committed voter base, gerrymandering and voter suppression can then enable Republicans to win control of the federal government via the Electoral College.

Across the nation, Republicans can lose by several millions of votes, and still govern our entire nation.

The same reasoning applies to inflation. A growing economy always has inflation. And everyone — rich, poor and middle class — is hurt by it. But those who cause inflation benefit far more than they lose.

Today’s inflation is the worst kind for low and middle income Americans. Those who made a lot more money than they spent during the pandemic are going on a buying spree, and raising prices for everyone. Those whose incomes stagnated or were eliminated during the pandemic now can’t afford to buy what they need, like housing, advanced education, nutritious food and basic health care.

So, it doesn’t make sense to be against inflation. We need to vote for politicians who want to reduce bad inflation and replace it with good inflation. That’s exactly what President Biden’s infrastructure plan would do.

Raising taxes on corporations, and high progressive income and inheritance taxes on the wealthy would reduce their ability to buy things, not just because they need them, but as an investment. Their purchases of real estate increases its scarcity and raises its investment value for them.

Biden would use this tax income from the rich and corporations to invest in infrastructure that would result in high paid working class jobs, and government agencies that benefit everyone — middle and low income Americans, and in many cases, even the rich.

Deficits also can be good or bad. A deficit is bad when it results from cutting taxes on the wealthy — the ones who have enough money to pay tax. It’s a deficit that drains money from the treasury because of its interest costs. It has few benefits because the wealthy already invest in businesses since that’s one of the best ways to get rich today.

Deficit spending is good when it invests in infrastructure, well-paid jobs and beneficial public services — and actually puts more money into the treasury.

Republicans’ main argument against deficits is that “it unfairly transfers debt to your children and grandchildren.”

A yiddish proverb says that “A half-truth is a whole lie.” If you’re in the bottom half of America’s wealth holders, your children won’t have to pay any taxes because they didn’t inherit enough money to cover living expenses and pay taxes. To claim otherwise is a lie.

Republicans know very well that the children and grandchildren of billionaires and millionaires will be paying off most of today’s debt — because they are the ones who have and make most of the nation’s money.

The big mystery: why aren’t Democratic leaders and activists pointing these things out to voters? They still think they can reason with members of the Trump cult and don’t want to anger them?

— — — — — — — — — -

If you want to read more about these issues, check out the following three medium posts:

For the federal government: https://chuckezykelly.medium.com/why-dont-democrats-talk-about-the-1938-fair-labor-standards-act-3fc103a373ca

For inflation: https://chuckezykelly.medium.com/inflation-is-always-bad-for-us-right-wrong-6439511d182d

For deficit spending: https://chuckezykelly.medium.com/our-economic-new-normal-1933-3bae9f9635f3 (Roosevelt did it big time when the nation needed it.)



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store