Government Has Caused The Problems We Face, So Why Should We Trust The Government To Fix Them?

From spending more money to ‘fix’ inflation, to repeated lockdowns, mandates, and other restrictions on freedom that damage our society, government ‘solutions’ to problems only make things worse, and compound problems governments have themselves caused.

The two biggest issues facing our country today are inflation, and the continued restrictions on individual freedoms by governments.

Both are connected, as the leeching away of our earning takes away our financial freedom, and repeated restrictions and lockdowns damage the economy.

In the background is the fact that the Trudeau government also seeks to restrict our economy to ‘save the planet,’ hurting GDP growth.

So, we have government policy purposely causing economic weakness and restricting freedom, which they then ‘address’ with a gargantuan increase in the money supply, thus driving up the cost-of-living.

We have a government spending and government intervention problem, in that we have too much of both.

As a result, any response to these issues that includes more government intervention and more government spending is doomed to failure, because it will only add to the problem.

Cut spending

The key reason for the rising cost of living is that each individual monetary unit is losing value. A rapid increase in the money supply beyond the increase in the number of available goods inevitably leads to ‘higher prices.’

The reason for the money printing has been due to governments spending far beyond their means. ‘Temporary’ relief at the beginning of the pandemic has turned into a sustained and massive increase in government spending, and those much higher budget deficits were ‘paid for’ with money created out of thin air by the Bank of Canada.

Since the Bank of Canada is nominally independent – though increasingly politicized in their enabling of massive government spending – some claim the government can’t directly do much about inflation. Of course, that misses the fact that government spending is generating that inflation.

Would the Bank of Canada be printing as much money if the government was running such massive deficits?

Of course not.

As a result, to address inflation, government spending needs to be reduced.

While that is apparently a taboo claim in Canadian politics these days, it is the reality.

At the very least, a freeze on new spending would help stabilize things, both fiscally and psychologically.

I mention ‘psychology’ because inflation can become a self-fulfilling prophecy when governments create the conditions for it.

For example, as prices go up, people expect prices to go up further. This can lead to people trying to buy more, as soon as possible, to try and protect their purchasing power before it erodes further. This of course causes prices to rise even more.

Now, when governments show restraint, cut spending, and make it clear that they are going to reduce their intervention in the economy, people begin to regain confidence in the stability of our long-term economy, and fears of declining purchasing power decline because the economy is no longer being flooded with cheap money.

However, with a government like the Trudeau Liberals in power, people increasingly realize that the spending is going to keep on going, meaning cheap money is going to keep pouring into the system.

Under those circumstances, not only will the Bank of Canada continue to print money, but Canadians will expect money to remain loose, and fear of reduced earning power will cause people to push up their purchases.

And, when people see that the Trudeau government talks about addressing inflation by distributing more money, Canadians will realize that the money printer keeps on brrrrring along, rendering their money less and less valuable with each passing moment.

(Yes, the meme below is for the US, but it fits with what’s happening here in Canada)

Money Printer Go Brr Jerome Powell GIF - Money Printer Go Brr Jerome Powell  Cash - Discover & Share GIFs
https://tenor.com/view/money-printer-go-brr-jerome-powell-cash-money-printing-money-gif-17266014

All of this is to say that the only way to truly address inflation is for the government to stop trying to address it, stop trying to intervene in the economy, and step back.

The same is true when it comes to how we should respond to the ‘Omicron’ variant.

At this point, the cycle has repeated so many times that it seems to be a feature of our society:

Government says citizens must take a certain step for ‘normal’ to return.

Citizens do that.

A new variant or ‘wave’ emerges, and governments then give a new set of instructions that must be heeded before a return to normal.

Citizens do that.

A new variant or ‘wave’ emerges…

Governments have imposed draconian restrictions and mandates on people, making a mockery of our rights and freedoms, and have constantly shifted the goalposts.

At this point, the only thing they haven’t tried is to do nothing, but that’s exactly what they should do.

The best ‘response’ to ‘Omicron’ is to dispense with the idea that centralized government control and restrictions on freedom actually achieve anything, and to focus instead on individual freedom.

Individuals must be freed to take our own level of risk, rather than having the government impose itself and make that choice for us.

Politicians must set aside their egos

‘Do nothing’ is the toughest thing for most politicians to grasp, since they have huge egos and love to feel that they are fixing all the problems of the world.

But, when problems such as inflation and the fracturing of our society due to draconian mandates are generated by the government, politicians must realize that their lust for power and control is only making things worse.

True leadership is the ability to empower others, not have power over them. We need our politicians and governments to step back and unleash the creative potential of the Canadian people, potential that is being held back by the massive expansion of government power that is generating so many problems today.

Without leaders who realize this, and without the Canadian people pushing back and demanding our rights and freedoms, the mistakes of the past will continue to be the failures of the present and future:

“Trudeau Sr copied Nixon/Carter’s money-printing deficits, causing 12% inflation.

Trudeau Jr copies U.S. money-printing deficits, ballooning inflation to 20yr highs.

Trying the same thing again & again expecting different results is the definition of insanity.

#Justinflation”

Spencer Fernando

Photo – YouTube

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