Skip to main content

Spending and Debt: The Gears of Tyranny

Keynesians and central planners prefer to view economic activity as some kind of mechanical machine whereby the people and their exchanges are the necessary gears to get it moving. Insofar as the people and their exchanges affect the performance of the machine, the Keynesians and the central planners seek to bring the gears into hyperdrive, eliminating every delay and discretion that might otherwise prevent a transaction from moving the gears. 



In this way, the Keynesians and the central planners view the people as incidental to economic growth. The former lament the fact that their field of study has them dealing with mere human beings instead of raw, inanimate material; but this hardly keeps them from treating their human subjects any differently than the material they might otherwise manipulate at will. 

In this way, the Keynesians and the central planners view the people and their actions as constantly grinding the gears or needlessly slowing them down. The Keynesians and the central planners glorify spending because they view savings as deferred consumption merely delaying the fruition of economic activity. 

They take no interest in the prospects of savings where they stand in anticipation of a rainy day or in preparation for retirement; they would much rather have somebody, anybody, spending that money on something somewhere. 

Their interest is in the velocity of money, not the preservation of its purchasing power, nor in the preferences of those who actually earned it. Indeed, they seek to drive the velocity of money for a number of reasons. 

A higher velocity causes the proverbial gears to turn more rapidly, and with that higher velocity government stands to benefit in a number of ways: it gets in on more of the action through taxation; it keeps the people perpetually busy and assuming progressively more risk in their hopes of retiring or enjoying more leisure time; consequently, due to higher levels of consumption and government spending, the government can boast a higher gross domestic product and booming economic growth, which in turn benefits the politicians and enables the government to take on more debt; and, finally, higher tax revenues and debt mean that the government can expand in its reach and power to bid for more of the public’s acquiescence, and to further intimidate and exploit the honest and hardworking people who, as the Keynesians and central planners see it, exist merely to keep the gears turning. 

One way or another, the Keynesians and the central planners induce that higher velocity by cheapening the money. Whether intentionally or incidentally, cheap money has the effect of distorting the economy and distorting prices, but it also has the effect of distorting incentives; and in a society governed progressively by monetary incentives, it has the effect of cheapening the values of the people. That is because cheap money isn’t honest; it’s speculative. It doesn’t impose discipline or encourage investment; it invites frivolity and decadence. It not only corrupts an economy; it destroys a society.

Whereas the people are inherently motivated to do well for themselves and their own communities, the monetary system has served to broaden each individual's contribution and his own reward. This has offered plentiful advantages in economies of scale and division of labor, while generally promoting the values of the people. However, wherever that system has been corrupted by political interests, that system stands to exploit the people in support of politicians, their cronies, and their preferred objectives. 

This is perhaps the most pernicious effect of cheap money, and one which commonly eludes the untrained eye of the public. Of course, by the time this effect has reached a fever pitch, the public has long abandoned its traditions and its scruples in favor of the more tangible monetary advantages; all the while, the unsuspecting public has been swindled out of its values by cheap money, printed or digitally imagined out of thin air. In this way, they've been conned into worshipping a false idol at the behest of central planners. Of course, the Keynesians and the central planners are generally clever enough to cover their tracks or to otherwise leave their victims feeling richer and better about themselves in the process. After all, so long as inflation is driving wages and assets nominally higher, the people start to actually believe in their big lie. 

Ultimately, in discreetly stripping the people of their savings through the inflation tax, conceived explicitly for the purpose of boosting spending and thereby supporting government, those honest and hardworking people are stripped of their livelihoods, their freedom, their peace of mind, the product of their own labor, their rightful property, and the most gratifying aspects of life; they are condemned to spend more time at work, and they’re left increasingly defenseless against the onslaught of government, their cronies and their supporters, ranks that consequently swell as the government spends more of the people’s money. 

After all, a broke and indebted populace is far easier to intimidate and control than the alternative; by definition, they have fewer resources to practically defend themselves, and for precisely this reason they’re made progressively more amenable to the commands of the regime which promises safety and security at the expense of their freedom. 

In the course of having precious little in the way of wealth and yet so much in the way of debt, they become more willing to depart with their freedom for some measure of temporary relief; whether it be in the form of food or in the ability to repay their debts, they come to participate directly or indirectly in their own subjugation. 

In this manner, the people are beset by a veritable mob which is just as enthusiastic about theft as they are ready to accept any justification, however convoluted or irrational, for their actions. 

Fortunately for the mob, the business of government is booming, and its payroll has afforded government, its cronies and supporters ample support to continue their siege. Unfortunately, the mob consists of many who passively condone the misdeeds and, in still other cases, active members who appreciate neither the true implications of their actions nor the various losses they personally stand to incur wherever the mob stands to succeed. 

Whether it’s force of arms, pseudoscience, entitlements, protectionism or outright propaganda, the siege becomes progressively more destructive as the mob operates not only with malice, but with the benefit of its conscience. 

There is perhaps nothing more dangerous than a mob wreaking havoc with the benefit of its conscience; unless you ask government, of course, which would have you believing that the most dangerous person in the world is the person who thinks for himself.

Comments

Popular posts from this blog

The Deal with Tariffs

Over the course of President Trump’s two terms, there has been much talk around the matter of tariffs — taxes on imported goods. However, much of the talk seems to miss the point. After all, for those of us who seek the truth, it’s not really a question of whether tariffs are ‘good’ but whether they are preferable to other kinds of taxes — assuming, of course, that taxes are the rule, as certain as the eventuality of death. First, let’s establish the theory: beyond the generic purpose of revenue generation for the state, the institution of tariffs ordinarily serves to  reduce (or discourage) imports by making them artificially more expensive, while encouraging domestic production by making domestic products more appealing on a relative price basis. In the realm of foreign affairs, tariffs are instituted or threatened in the course of international trade negotiations in order to signal dissatisfaction with existing trade barriers and to push for more favorable trade terms; or in ord...

Summarizing the “Separation of Church and State”

There is much confusion surrounding the concept of the “separation of church and state”; much of it likely born out of the steep secular decline in religious affiliation across recent generations, with particular emphasis among atheists and anti-deists.  While many have hastened to leverage this language (“separation of church and state”) in order to condemn or censure religious values — particularly those which are Christian — where they have carried influence in public life (i.e. prayer in schools, teachers covering lessons from the Bible, government representatives appealing to God, coinage bearing the words “In God We Trust”), the truth is that this “separation” was never expected to completely eliminate religious practice or religious sentiment from all matter of public life. In fact, religion was so deeply enmeshed in American life during the eighteenth and nineteenth centuries that the French magistrate and prison reformer Gustave de Beaumont, during his nine-month tour of A...

Rethinking “Forgiveness”

Forgiveness is often hailed as the ultimate moral virtue — a cleansing of the soul, a sign of spiritual maturity, and the first step toward healing fractured relationships. But in modern discourse, particularly in religious and pop-psychological circles, “forgiveness” has extended beyond the sensible, beyond etiquette, and beyond justice and useful application. The concept of “forgiveness” has been stretched far outside of the realms of that which is easy to “forgive”, that which is merely inconvenient or annoying, or relatively innocuous or insignificant, where “forgiveness” is merely part of tolerating people’s human shortcomings, their mistakes and  their accidents , or extending ‘mercy’ to those who’ve disrespected or “trespassed against us” (and have since offered sincere apologies and the necessary restitution). This reimagined kind of “forgiveness” has taken on a dangerously idealized form ignorant to or dismissive of the laws and limits of human nature and the potential imp...

Their Lives, Their Fortunes, and Their Sacred Honor

A  recent YouTube post by the political organization PragerU betrays the truth about the American Revolution. It goes as follows: “Britain spent a fortune defending the colonies in the French & Indian War. America’s response? Boycotts, protests, rebellion. Ingratitude that sparked a revolution.” This description of history is not just a reductive reframing of the issues; it is a crude and provocative statement insulting the intelligence of Americans who remember their history and disrespecting the men who staked everything in their noblest of causes during the American Revolution.  One commenter in the comments section even sided with PragerU, taking to task any who dares criticize the post: “Are you incapable of creating scenarios from the opposite side?” Unfortunately for this commenter, true history isn’t about “creating scenarios”; it’s about understanding what actually happened — the totality of the circumstances. So, let us do just that: let’s get straight to the fac...

The ‘Values’ Problem in the NFL

Every year, there is talk across the major sports leagues about which players are due for contract extensions and huge paydays. The chatter is seemingly endless, and it often seems to cast a shadow over the sports themselves — talking heads arguing and debating, insisting that so-and-so is going to ‘reset the market’ or so-and-so is demanding the ‘market rate’ for his position.  This is where the conversation goes awry, economically speaking.  The truth is that players  are not commodities: they are neither fungible nor interchangeable. Each player brings a distinct skill set, and each team operates within a unique scheme, meaning that each player’s value is situational rather than universal. There is, thus, no ‘market rate’ for any player or position; contracts exist in relation to each team’s particular situation, and every dollar spent on one player (in a salary-cap league) directly reduces the resources available for others — where ‘overspending’ in any case necessari...

Fischer: Tortured in the Pasadena Jailhouse (featuring the Morals of Chess by Benjamin Franklin)

Buy your copy today of  Fischer: Tortured in the Pasadena Jailhouse (featuring the Morals of Chess by Benjamin Franklin) , available at  Amazon  and Barnes & Noble . The name Bobby Fischer reigns supreme in the world of chess, yet there was a time when it hogged headlines, struck fear into the eyes of the competition, and was on the lips of folks all across the globe. More than the face of the centuries-old game, there was a time when Bobby Fischer was synonymous with the cause and spirit of America, that his moves on the chessboard sought more than checkmate but to pit the strength of “raw-boned American individualism” against “the Soviet megalithic system” which had come to dominate the game of chess at the same time it dominated Cold War politics. Fischer’s triumph over the USSR's Boris Spassky in the ’72 World Chess Championship would ultimately be celebrated as a symbolic and diplomatic victory for the U.S., but, as time would tell, it would not mean the American...

The People's Banner: Why the “Thin Blue Line” Flag Betrays the Spirit of the Stars and Stripes

The American flag — proudly known as the Stars and Stripes — is more than a banner of colors stitched together. It is a living symbol of rebellion, unity, and the sovereignty of the people. It was never originally the flag of a government, but of a movement; not a mark of officialdom, but of revolution.  Having evolved from the Continental Union Flag, its stripes — with their roots in the "rebellious stripes" of the Sons of Liberty — represent resistance to abusive power, a stand against imperial overreach, and a declaration that legitimate authority flows from the consent of the governed. In this light, the proliferation of the “Thin Blue Line” version of the American flag is not merely a modification of a unique American symbol; it is a mutilation of the flag’s fabric and its meaning. It transforms a people’s flag into a government’s flag, in direct contradiction to its foundational ethos. The Stars and Stripes emerged during the crucible of the American Revolution. Designe...

Death By Cop

A  recent post from a popular YouTube channel has provided more evidence of that which is blatantly obvious in modern America, at least to those who are willing to face the truth: the fact that cops, as with the governments they serve, are the enemy to goodness, justice, and American liberty.  This latest post is from The Civil Rights Lawyer, a channel (by a practicing civil rights lawyer) documenting police misconduct and civil rights violations since the year 2020. This time, it is a case of an elderly man, a former pastor suffering from dementia, murdered at the hands of “ the very people who were supposed to protect and care for him”: “Officers were dispatched to a business to assist an elderly customer who appeared to be suffering from dementia. At the scene, officers found him extremely confused. He told them the year was 1948 and that the president was George Washington. So they call his daughter to come pick him up. So how did things go so terribly wrong that day, tha...

“Stolen Land”

The claim that America was built on “stolen land” is not only a politically-loaded oversimplification, but a deliberately narrow framing that keeps America — and America alone — under perpetual moral scrutiny. It collapses fundamentally different actors, motives, and historical processes into a single accusation, thereby obscuring more than it explains. At a macro political level, land claims have  always  been in flux. Long before European contact, tribes across North America routinely warred over territory, resources, hunting grounds, and waterways. Claims were seasonal, contingent, and often overlapping, shaped by migration patterns, environmental conditions, and intertribal treaties that themselves shifted over time.  Had Europeans never settled in America, this dynamic would have continued to dominate; it was the prevailing condition of the continent. From this perspective, “ownership” has never been an abstract moral constant but a function of enforceability under a...

Cullen Roche's Not So "Pragmatic Capitalism"

In his riveting new work Pragmatic Capitalism , Cullen Roche, founder of Orcam Financial Group, a San Diego-based financial firm, sets out to correct the mainstream schools of economic thought, focusing on  Keynesians, Monetarists, and Austrians alike. This new macroeconomic perspective claims to reveal What Every Investor Needs to Know About Money and Finance . Indeed, Roche introduces the layman to various elementary principles of economics and financial markets, revealing in early chapters the failed state of the average hedge fund and mutual fund operators  —  who are better car salesmen than financial pundits, Roche writes  —   who have fallen victim to the groupthink phenomenon, responsible for their nearly perfect positive correlation to the major indexes; and thus, accounting for tax, inflation, and service adjustments, holistically wiping out any value added by their professed market insight.  Roche also references popular stu...