Government regulation and micromanagement of the economy go against the forces of nature. France's public spending equals 57% of its GDP, more than every EU country but one.
Last year French governments at every level spent €771 billion on payouts like pensions, health care, unemployment, and family aid, plus €65 billion in interest on their debt. Public investment, everything from roads and schools to military equipment, came to €132 billion. Payouts and interest were more than six times that.
The debt reached about €3.6 trillion by the end of June, and the government projects €91 billion in interest next year. On Saturday, French authorities counted more than half a million marchers.
You can't really shift the budget anyway, because the incentives are misaligned. Payouts win votes now, and fiat currency lets governments borrow the difference and push the cost into the future. To me, the root problem is fiat currency. No fiat currency has ever succeeded. It is a failed experiment.
I think the U.S. is headed down the same path, and I think savers end up paying for it through a weaker currency.
Around the world the protests are said to be triggered by “higher prices and less access to services”, and while those symptoms are real, the cause is hidden from the uneducated masses.
A look at this chart reveals the root cause: The State
Anything the state touches gets more expensive. They add demand without adding supply, and worse, their regulations and incentives cause supply destruction.
Anything the state stays away from, and markets can move more freely, prices go down, access becomes cheaper, food become more abundant.
The chart makes it simple to grasp:
Capitalism is the force that drove down the price of almost everything it touched. The state is the force that blew up the price of almost everything it captured.
And young people blame the first for the crimes of the second. Why?
Because the education comes from The State.
Public school, govt supported universities, gov funded media, training the masses to look at everything through an
“Oppressor v Oppressed” lens.
Because it’s never your fault, always the fault of someone, something, we need to be able to blame something.
And the State is never going to educate you to look at them as the problem, in fact… most inside The State aren’t even aware themselves.
But it all boils down to the most simplest of ideas, economics 101
Supply V Demand
So we need more supply than demand, and the chart shows us, we need less state intervention to get there.
Less gov funded demand
Less gov boots on supply