Let’s say a house is on fire. The fire department shows up, except rather than spraying water on the fire, they spray gasoline. Moments later they are shocked the fire has gotten out of control.
Yet here we are. The central planners are fighting inflation with more inflation.
In Canada, the province of Quebec plans on giving individuals who make less than $100,000 a year a $500 check to:
…help them cope with higher than expected inflation.
An estimated 6.4 million people are expected to receive this money. Doing the math, the government is spending $3.2 billion it doesn’t have. It will do nothing to decrease the cost of living.
Continuing along these lines, if $500 is good, surely $1,000 would be twice as good. It seems no one in power cares to publicly acknowledge these absurdities. According to the government:
Finance Minister Eric Girard defended the decision to give a $500 cheque to the vast majority of taxpayers as the best solution to help households cope with soaring inflation.
As explained:
The measure was “better than anything that was proposed,” the minister said.
Canada is not the only nation ignoring concepts Austrians have stressed for over a century. In the USA, despite the highest inflation readings in four decades, the desire for new stimulus measures persists, as CBS Reports:
…almost 3 million people have signed a Change.org petition started last year that calls on lawmakers to pass legislation for recurring $2,000 monthly payments.
The petition is only 1.5 million signatures away from being the number one most signed petition on the website Change.org.
But wait, there’s more! Just last week, out of California:
Governor Newsom Proposes $11 Billion Relief Package for Californians Facing Higher Gas Prices
If enacted, eligible residents will receive $400 per vehicle, at a cost of $9 billion, while $2 billion will go to free public transportation.
According to Representative Mike Thompson of California:
The gas stimulus would “provide middle-class Americans with monthly payments to ease the financial burden of this global crisis.”
So much stimulus is slated to come out this year that CBS compiled a list of states that will send out stimulus checks to fight inflation. Literally and unapologetically, the headline reads:
Stimulus checks for inflation: Here are the states planning to send money to residents
Of course, all these state stimulus checks cannot hold a candle to what’s coming down the pipeline:
Biden Pitches $5.8 Trillion Plan With Record Tax Hike
Fighting fire with fire, or fighting inflation with inflation; this is what happens when all of history and economic reality is willfully ignored by the powers that be. Money continues to be plentiful, and so too is the government’s desire to spend that which it does not have.
Normally, it’s understood that every action has a consequence. This may be true, but unfortunately those writing the checks, levying new taxation, or borrowing newly created money appear to be immune from any adverse consequences. Not only are central planners and politicians not punished, but they’re rewarded with celebrity-like status, unfathomable salaries, and benefits. These few powerful individuals are not widely viewed as villainous traitors against the country; if anything, they get schools named in their honor, maybe a library, and on the odd occasion grace the cover of TIME magazine.
