We have to go back to 1945 and the Second World War to find a time in which government spending is similar to today's panic-driven frenzy of spending in Washington.
As government seek ever larger amounts of debt to finance more spending, they're embracing huge debt levels in the way a broke consumer might embrace payday loans. In the end, we're left with nothing but a flimsy promise to pay.
In 2020, federal spending grew year-over-year at the highest rate since the Korean War. But state and local spending growth flatlined. Why? The answer lies with the Federal Reserve and how the feds can spend and borrow a lot more than any state.
The SALT tax deduction allows state and local taxes—like property taxes—to be deducted from federal taxes. To cap it is to pave the way for the federal government to tax income twice.
Debt accumulation was already unsustainable prior to 2020, but the Great Lockdown has triggered an explosive increase. It may soon be reaching a point of no return for the world's major economies.
Government jobs may help reduce the official unemployment rate, but they actually damage the economy. After all, most government workers are employed in the business of redistributing wealth and regulating private property.
Just as SJWs redefined justice as "social justice"—with big implications for how we view true justice—politicians are redefining infrastructure to justify even more government intervention in daily life.
Raising the US corporate tax would drive more capital out of the US. But the tax hike will be less risky if the US can get other countries to raise their tax rates as well.
The deficit for the year is pushing $2 trillion. And we still have five months to go until the end of the fiscal year. Only during World War II were the deficits so huge in relation to GDP. Meanwhile, the Fed continues to print money to buy more Federal debt.
When it comes to the oligarchs' new semiconductor subsidy scheme, the real cost in terms of economic distortions, lost welfare, and harm to competitors, is quite real and beyond the dollar amounts we see in the subsidy itself.
