Dear Friends,
It seems to me that by November, the economy should be humming along nicely, the recovery from the government induced recession fully underway, and creative destruction will be just starting to kick in. This spells disaster for democrats. The Wuhan Flu hit too early and was not deadly enough, even though democrat governors intentionally put CCPandemic patients into old folks homes, presumably to gin up the numbers of dead, and increase the panic. We’ll have to see if that backfires on them as well. Even the most authoritarian of governors will have to reopen their economies by November. Some are probably hoping for a resurgence of the Kung Flu, because of the riots, but now we know Hydroxychloroquine and zinc are effective treatments, it isn’t as dreadful.
Simply reopening the economy will result in a recovery. This is self evident since the recession is totally due to the government ordering the economy shut down. This unprecedented and unconstitutional move, ordering workers to stay home, shockingly, (apparently), created unemployment. The same Brainiac 3000’s who are dismayed that unemployment would rise, because government threatened workers with jail if they go to work, cannot fathom how allowing them to return to work will lower unemployment. This part of the rebounding economy should be obvious to anyone and strongly suggests a “V” shaped recovery. One would think this shouldn’t be lost on someone who believes in a rationally ordered top down economy?
One thing that stands in the way of a strong recovery is regulation. There is a powerful feeling among the American people that we need to claw back at least some industry from China. Especially crucial manufacturing, like pharmaceuticals. A look at the stock market suggests others believe manufacturing will come back to the US, in that firms and other enterprises that facilitate the starting and operation of manufacturing are on the rise. Nevertheless, the cost of running a factory in the US dwarfs that of running it in China… because of regulations. Even if the workers made more in China, insane regulatory burdens in the US tip the balance, making manufacturing here more difficult. Moreover, the legal establishment that created those regulations, for themselves, will not relinquish them willingly.
Creative destruction should kick into full gear. The term creative destruction was coined by Joseph Schumpeter in his book, Capitalism, Socialism and Democracy. It means that creative forces are released after a wave of destruction. This is as true in economies as it is in nature. Wildfire is destructive, but in it’s wake there is an explosion of fruit, cover and home sites for wildlife as well as humans. Recessions do the same thing. They eliminate the dead wood, zombie firms, and release the nutrients back to more productive uses. After a recession, rent gets cheaper, and quality employees become available, which makes realizing an idea more possible. Therefore, some ideas, hopefully the best will come to fruition, and improve the lot of Mankind as well as increase the stock of capital.
The greatest threat to a rapidly rising economy, wages and standard of living, is another progressive made catastrophe. The riots were a good try, but really, how long can you maintain riots? Sooner or later you run out of Wendys and Targets to burn and loot. Then where are you? Standing in a burned out wasteland, just as the Gauls found themselves in after sacking Rome… or the center of Seattle Washington today. To derail the recovery that is coming at us like a freight train would take something huge. Let’s pray the psychopaths in the CCP, progressive party and Globalists don’t have something else up their sleeve. Although I worry they do, because, if they don’t, they will not be able to create enough vote fraud to stop the landslide that is coming at them in November.
Sincerely,
John Pepin
