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Government finances-II-J

11 Jan

Most people think of politics as a system of power and control but don’t realize that at the basic level, it is tied to economic systems. Increases  or decreases in government spending, regulations, and taxes effect the economy. The bigger the change, the bigger the effect. Inflation is caused when there is a lot of available money and very few goods available. President Biden authorized massive spending programs and authorized the printing of massive amounts of money. In addition, he authorized several large stimulus programs making a lot of additional money available. On the other hand, he has increased taxes and government regulations on businesses to slow inflation by reducing the amount of money available. However, the increased taxes caused businesses to cut back on production due to increased production costs. That reduced the amount of goods available further fueling inflation. The result is the massive inflation we now see. When I was in school, we had to take a course in basic economics but increasing liberal policies have dropped the course from most schools. As a result, few people today know how to make a budget or balance a check book and it is hurting our families and ultimately our country. Many are easily misled by our media which supports the radical socialist agenda. While I deal extensively with the economic systems in my book, “Truly in the World, But Not of it-part-B” under “economics” and under “government”, I will provide a brief overview so that you will know what I mean when I talk about democracy and Socialism.

 

 
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