U.S. Economy

Like his predecessor, President Trump unsuccessfully tries to convince Americans that their economic pain isn’t real, but Americans know the difference.

It’s difficult and often dangerous to depend on the government. But statists, no matter the problems, will often say government services aren’t fully funded; that almost all these services should be expanded.

Financial bubbles, which used to be rare, have become a way of life, thanks to a quarter century of easy money policies from the Federal Reserve System. We need to better understand how bubbles form and why they are so harmful.

President Trump announced the tariffs aiming at two goals: protecting American producers and the relocation of foreign companies to the US. People have been “protected” by being disallowed peaceful, mutually-beneficial trades with others.

Instead of market competition, inflation forces young and old into rivalrous competition for housing.

Instead of market competition, inflation forces young and old into rivalrous competition for housing.

More statist orientation of people, combined with already-bloated government budgets and dangerous levels of national debt, and strong underlying demographic erosions in the form of declining birthrates would suggest a shift in trends toward higher interest rates into the future.

The so-called K-shaped economy—where some experience positive growth and others negative growth—is perfectly explained by Austrian business cycle theory and the Cantillon effect.

On the economy, Trump gives himself a grade of “A+++++,” which is reminiscent of Hoover and other politicians who interpreted their economic failures as successes.

Inflation does more than just force up prices. It destroys the wealth-producing process, especially with young people who are prevented from acquiring the same kinds of assets earlier generations procured. The result is inter-generational conflict.