Investment Power (what we're losing)

Post #649

“well-being is conditioned by the increase in savings and capital accumulated; … funds that enable business to make practical use of scientific and technological progress” —Ludwig von Mises, 1958

The purchasing power of money is crucial in the ability to maintain wealth and avoid poverty and strife. Sound money is best. Related to the purchasing power of money, is a nation’s “investment power” — its ability to invest in its own future.

To make sure you can invest, you must save. To make sure you can save, you must produce so much per worker-hour (have labor productivity) that you can meet all of your needs by working just a finite amount of time — such as 40 or 50 hours per week.

But government intervention can interfere with all of these things, leading to a situation where investment into the future is made impossible. Governments intervene because they want the output of a productive process hastily — i.e., without respecting the sustainability of the productive process in the first place.

Almost 2,700 years ago, Aesop wrote a fable about this error of hastily wanting the output, but without respecting the productive process in the first place:

The moral of the story is summed up at bottom: “and so they lose all they have.”

The USA is currently on the brink of losing all that it has, even its position as the world’s greatest superpower. But the worst part is that the American people stand to lose what they have, including the opportunity to build a better life for themselves and their children.

This lost ability to invest into one’s own future is related to the growth of government intervention. The upward trend in government growth (red line below), and the downard trend in net savings (ie., the ability to invest in your future), are opposed:

The blue line represents net savings, and it goes negative at bottom-right — meaning that, not only can we not invest in our future, but we have to pay back for prior living standards we enjoyed but never paid for (because of “big government,” we now have to accept a drop in our living standards moving forward).

If we don’t turn things around in this country, by dismantling at least half (or more) of the federal bureaucracy that we currently have, we won’t have the possibility of a bright future for ourselves and for our children.

The Great Reset is a “pre-emptive strike” by the globalist elites who can see coming chaos that stems from their very own policies of interventionism. They want to return to a caste system enshrined into law, where most people remain poor due to further economic interventions, such as Central Bank Digital Currency (CBDC).

To thwart these globalist elites, it is necessary for a critical mass of ~30% of citizens to become aware of the coming chaos which stems from economic intervention. After crossing the threshold where ~30% of us have a very clear understanding of the negative effects of intervention, then the plans of globalist elites will become stifled.