Government takes over the economy
The latest headline from marketwatch.com: “Service side of the U.S. economy crashes in April to recession levels, ISM shows”
“Only two of the 18 service industries tracked by ISM — government and finance — grew in April…The other 16 industries all shrank.”
This data shows what is happening – the government is taking over the entire economy. Only industries that serve the interests of the government will be supported.
The finance side was growing only because banks were making government backed loans:
“Banks and other financial companies have been busy making loans to countless small businesses through the government’s emergency rescue package.”
“Due to increased loans from the stimulus package, [we are] seeing an increase in new business,” an executive told ISM.
Government determines who gets the spoils. It blows money onto the land and wherever it lands it lands. The connivers get the money. The people who fill out the forms, stand in the lines, protest most loudly. The money surges into some areas, and dries up in others, distorting everything in an economy.
The US economy is so distorted now, there is no turning back. They must push forward with evermore distortions. Look for government to be the arbiter of all tastes, the determiner of all fates. Understanding the day to day workings of a fiat money regime is pointless. There are no rules. The fiat system must go all the way to the end.
All things government is growing, all things private sector is slowing(willful destruction of private enterprise). The end result of this trend is a full scale command economy. A USSR style soviet economy, where the government decides who gets money. Those who rely on government to get money will get money. For all those who don’t, they clamor to get closer to government. Money comes not from other people that you do work for, but from how close you are to the government.
Some are completely unaffected by this. Teachers, police, government workers, government contractors, politicians. They are all still getting paid and have not missed a paycheck. If anything, they got to stay home and continue to collect.
Those who lost were those in private industries. Tourism and travel related, restaurant workers, construction. All those who work for private industries were laid off, had their hours or pay cut. The self employed just stopped working. But the government workers continued to get paid.
Even those in private industries were drawing closer to the government with stimulus checks, unemployment, PPP loans, EIDL loans etc.
But this is not only our future it is our now. Already over 25% of society gets its money from the government. Soon everyone will be a government worker.