Christmas Economics Report (Grinch Edition)
You're a three decker sauerkraut and toadstool sandwich with arsenic sauce!
This last line from the 1966 Christmas song: “You’re a Mean One, Mr. Grinch”, would be applicable to most administrations of government — at least since the COVID debacle. But the underlying ‘noxious-ness’ (injurious to physical or mental health) of large and intrusive government has been working its way into society for decades.
Under the free enterprise system which the USA had in the 1920’s, the sum total of all worker wages constituted the majority (>50%) of gross national product. This aspect even remained true up until about 1970, right before US currency became 100% fiat currency:
When workers allocate at least half of all economic output, prosperity ensues.
But notice the lock-step drop in the share of output returned to the workers. After government grew, the share of output returned to the workers progressively fell — even hitting just 42.0% of GDP in 2013 (a shameful time for America).
Here is a comparison of the wage share of GNP/GDP under 11 years under economic freedom versus 11 years under government controls:
The total (federal, state, local) “government share” of GDP was still below 25% of GDP in the 1940’s and early 1950’s, but it grew beyond where it was, and it is the wage share of GDP that shrunk accordingly:
The red line is the wage share, which has been dropping ever since the total government share of GDP exceeded 30% of GDP. The green line, green for The Grinch, is the government share of GDP. The blue line is the overall operating profit of business, and after falling to a baseline of just above 20%, it is now at 25% of GDP.
This proves that the growth of government is what led to the cut in worker pay. The labor force used to allocate most of the resources of society, but look at the COVID years at right — when government spending was greater than the sum total of all worker wages.
Government shills and cronies will argue that part of the reason for returning less and less of economic output to the workers over time is because workers have been rewarded with special compensation packages (retirement, healthcare, etc) which sundry finance moguls largely operate and benefit from.
But this “appeal-to-paternalism” — where they claim that they are taking better care of the workers, by diverting employee compensation into their special financial schemes — is nothing but further centralization of resource allocation.
Evidence strongly suggests that “The Grinch” (big government + government cronies) has been stealing Christmas ever since at least 1970, if not before.
The globalist elites which have been behind the decades of government growth in the USA now plan a Great Reset where economic and political freedom is essentially extinguished, relegating most of society into a hand-to-mouth existence, where we own nothing.
In other words, Christmas would be a time where you would find only a lump of coal in your Christmas stocking — if you are that lucky.
In spite of the clear and present danger that big government has now become, Merry Christmas!