The Death Spiral Of America

"Sit-down with People Magazine - Wilmington, DE - August 14, 2020" by Biden For President is licensed under CC BY-NC-SA 2.0

Whether Joe Biden has won the election legitimately or not, it is looking increasingly likely that the former (corrupt) Vice President will be inaugurated in January.

This is bad news for the future prospects of the United States and here is why: Many countries are at the end of their death spiral. They suffer from high inflation, high unemployment, and bankrupt junk status governments. How did they get there? Socialist leaning governments attempt to soak up the unemployment by hiring more staff they need at usually poorly run state-owned enterprises and help the rest by creating vast social assistance programs in the form of grants.

This doesn’t seem so bad right? “They are only being compassionate to the poor and struggling” one would say. They are wrong. Devastatingly wrong. What they fail to do is something that you would expect politicians would regularly participate in. I am of course referring to thinking ahead with a reasonable amount of rationality. Leftists seem incapable of foreseeing the inevitable devastation their terrible policies create.

“MEDFLAG 2010, Medical Assistance to the People, Kinshasa, Democratic Republic of Congo, September 2010” by US Army Africa is licensed under CC BY 2.0

Here’s how it works. The leftist government wins an election by rowing up a significant amount of the population on the lie that the rich, business owners, and certain racial groups are the reason so many people live in a poor state today and in the past. Once they win, they have absolutely no idea how to fix the invented problem. Attacking businesses will only close them down and create more unemployment. So they do what was previously mentioned. Thet soak up the unemployment in big government and dish out billions in handouts.

The inevitable happens, they run out of cash. Now what? No more cash to feed the now dependent population! A solution: raise taxes! That will teach those greedy businessmen a lesson for getting us in this mess, and fill our coffers with more cash to feed the hungry dragon. The unfortunate result of this irresponsible method is that raised taxes halts business growth, and forces companies to downsize.

This creates a problem for their little plan. Less business = less tax revenue and more unemployed. So they sit around the table and conclude: “well comrades, we have no more cash to feed the newly unemployed and the already millions on social benefits. The state-owned enterprises are no longer turning a profit and need a bailout, what are we going to do?”

“Ensuring social assistance reaches the most vulnerable in Indonesia” by World Bank – East Asia and Pacific is licensed under CC BY-NC-ND 2.0

They come to the same conclusion they always do. Raise taxes… The spiral should now be clear. It will eventually reach the bottom, but trust me, no one wants to be there. It’s Britain in the 1960s with over 90% tax, Its Venesuaela with a broke government and almost 90% unemployment, and Its Zimbabwe with an economy so poor the people are forced to eat rats they find in the streets.

It’s not pretty, but it is destined to happen should liberal policies get their way. The world has witnessed this in their own counties, it’s time the American people wake up to this reality.