Unsustainable

The stock market as I write this just after 3:00 today is down 900 points or about 2.65%. Many folks want to know why it’s happening. Simple really – we cannot sustain the economy by spending money like there’s no tomorrow. Of course, however, this is exactly what Democrats want to do.

And it will work – in the short run. Massive infusions of cash into the economy will certainly spur things at least temporarily.

If you think about their strategy, the Democrats are at the very least shrewd. They pump 3.5 trillion into the economy but then raise taxes on “the rich” and on corporations. The latter which will simply pass along their increased costs to you the consumer, whether you make $20,000 a year of $200,000 a year. So this tax affects the poor at a much greater rate than the upper middle class.

Most consumers who will benefit from giveaway money won’t care that gas is up to $3.40/gallon when they are making an extra few bucks off the government dime.

This temporary bribe of the middle and lower class won’t be felt until the money runs out – and eventually it does. Of course the Democrats will say that they “paid for the money” by raising taxes. You guys are smarter than that – higher taxes simply means the “rich” find new and improved ways to hide income and or take advantage of the myriad of tax breaks available to them in the million page code of revenue.

So what happens when it does run out? What happens when you give a heroin addict more heroin. One of two things. First, they run out heroin and Uncle Sam steps in and says they hate seeing go through the DT’s and now $4.00/gallon gas, so here’s so more heroin.

The second, and more likely thing, is far more problematic. The user has had access to affordable heroin and deepened their addiction. And the plug gets pulled. Disaster.

The question is this – will their time run out before or after the 2022 mid-terms?