Stagnation is real, but it isn’t “secular”—that is, sluggish growth doesn’t have to happen. The coming stagnation isn’t foreordained; it is simply the inevitable outcome of a progressive agenda that disdains free enterprise.
If Bukele really wants monetary freedom for El Salvador, he should not have presented them with what, effectively, is a government handout for bitcoin hodlers and the companies behind the Strike app and other potential intermediaries.
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.
Seemingly endless amounts of fiscal and monetary stimulus will keep prices rising in the near term. But if the banking sector and other bubble industries weaken, we will eventually see deflation as new loan activity lessens.