It seems to me, if you want a car to go faster, it is not a good strategy to push harder on the brakes. Our political elite strongly disagree with me however. They believe with all their hearts that the harder you push the brakes the faster the economy will go. They claim they want more jobs and a faster growing economy, and then say with all earnestness, that to get that result they will push even harder on the economic brakes. Sadly, the result is always a slower growing economy, less jobs and lower wages. To the political elite, this is a conundrum that is unsolvable, it is the Gordian knot of economics. I would like to suggest that perhaps, just perhaps, instead of pushing ever harder on the brakes, it might be a sound strategy to lift up on the brakes and maybe even push the accelerator a bit.
The new class elite say they want higher wages, more jobs and a faster growing economy in every speech, talk and seminar they produce. They go on and on about income inequality, stagnant wages, the evil rich, unfairness of capitalism, social justice, etc… Yet every policy they enact only makes the problems, they so hate, get worse? One must wonder how it is that such good intentions always seem to come to naught? Maybe because the policies they enact are always the same… pushing the brakes on the economy.
Higher regulations is their fall back position. They believe that increasing the friction of regulations in an economy will make that economy grow faster, create more and better paying jobs as well as level the playing field for those trying to get ahead. In fact if you or anyone else brings up the idea that maybe, just maybe regulations are too high, the new class elite will chuckle, look at you like a child who believes in Santa, and tell us the economy must have regulations… everyone knows that. Besides, the dire threat of global warming must be stopped by regulations! They have bought and paid for “scientists” that prove it every day. Therefore then push harder on the regulatory brakes with both feet.
The new class love to raise taxes. The answer to every economic, social and political problem is the brave policy of raising taxes. What courageous people the new class are. In the face of us ignorant fools, the new class elite ratchet up our tax burden to help create more and better employment, but they are only doing it for us. They see government spending as the solution to every problem that has ever plagued mankind since we emerged from caves. If only the hoi polloi was as enlightened as the elite, we would also see that taking ever more of our money and throwing it down the rabbit hole of government spending, helps us far more than if we were allowed to keep the money we earn… and so they raise taxes, every year in any way they can, pushing ever harder on the taxation brake with their whole body.
The new class believes that vilifying those who create jobs will to lower the unemployment rate. Listen to any rich new class elitist and they will assure you that the problem is those evil rich people. Not the one speaking of course! Heavens no! It is the fault of all those other rich people, you know, the ones starting businesses and investing their money in the economy, certainly not those who got rich in politics, or old money that sustains the trust fund class. Any progressive will look you in the eye and with a tear in his eye lament your problems, that are because someone is trying to get rich by starting a company, hiring people and adding value to the economy. If you don’t agree then it is just because you are too simple to grasp the intricacies of their policies. So they crush the brakes on entrepreneurs as hard as they can.
Could I offer a different strategy? Maybe instead of pushing down ever harder on the economic brakes, to get a stronger faster growing economy, it might behoove us if the elite lifted their foot from the throat of the economy and allowed it to get some air, maybe even pushed down a bit on the accelerator? I know that is a radical concept, and most any politician who the new class agree with will agree that is an extremely radical position to take, but since pushing harder on the economic brakes has only slowed the economy, radical measures should be considered. Radical measures like, lifting up the foot from the regulatory brake, easing up on the tax burden or maybe cheering those who start businesses and employ people. I know, I know, such talk is like saying water flows down hill, horses have four legs, fish swim in water or that the Earth is round… absurd to the utmost. Or perhaps, the new class elite know their policies of pushing harder on the economic brakes will slow the economy, and therefore they really don’t want a fast growing economy, creating lots of good jobs and higher wages, in spite of their rhetoric? Or is that too extreme to say?