THE INTELLECTUAL FOUNDATION OF THE WEST’S SLIDE INTO TYRANNY, PART 1 OF 3: BY Robert P. Murphy
Why do the defenders of capitalism feel like they’re under a coordinated attack? Because they are.
One of the ironies in our current situation is that Carlos and I have been warning our subscribers for years that the various rounds of quantitative easing (QE) had blown up a giant asset bubble that would eventually burst, and that the fallout would be even worse than what happened in the fall of 2008. Well, that did happen, but there was the whole global pandemic thrown into the mix. Consequently, it’s hard to know how Austrian business cycle theory interacts with the coronavirus itself and the associated lockdowns.read more
Even if the virus dies away, large sectors of the economy are already pulverized.read more
Major Firms Less Liquid Than a Responsible Household
Standard financial planning recommends that a typical middle-class (or wealthier) household have at least 6 months’ worth of expenses available in very liquid funds (“cash in the bank”), to handle a sudden job loss, injury, or illness. And yet, when the coronavirus crisis struck, we saw not only small businesses but even many major firms brought to their knees because they couldn’t handle even a temporary interruption in their revenue streams.
Democratic presidential candidate Elizabeth Warren has been throwing out so many ludicrous campaign promises that she makes Andrew Yang—the guy literally trying to send everyone a monthly check from Uncle Sam—look reasonable in comparison. Recently, in order to explain how she’d pay for her $52 trillion (over ten years) “Medicare for All” program, Warren doubled her proposed wealth tax on billionaires, from the original 3% now up to 6%.
To repeat, this is an annual tax on wealth, not on income.read more