We are so busy living our lives every day that it is likely never or only on a very rare occasion that we give much thought to our government and most of those thoughts will be around election time. We elect who we think is best and assume that they will run the country in our best interest. We could not be more wrong. First of all, it used to be that only influence of elections by people like George Soros who gives hundreds of millions to anti American candidates who would change our way of life was a problem. Now in my opinion, possibly as far back as the year 2000, we have to wonder if even our national elections were stolen as well by the introduction of phony manufactured votes and to what extent this may be happening. There are, it seems, a great many wealthy and very powerful people in the United States and outside who are very determined to change our way of life not only in this country but on all of Planet Earth.
Is our government actually run by elected officials? Most of it is not. We do not, for example, elect the heads of the CIA, FBI or the IRS. In fact, I cannot tell you who they report to. Maybe they are allowed to do what they want and report to no one. But I read an article recently written by a former Face Book insider who stated that the head of the CIA and the head of Harvard University at the time worked with Mark Zuckerberg, formerly Mark Greenberg, to create Face Book as an on line outlet which would be addictive to likely billions of people through which the government can control what we read and influence what we think. In the same article, Mark Zuckerberg was quoted as saying that the common people are animals which should be kept in cages. Presumably, he includes his own Face Book users in that category. There have been many stories in recent years, although you will not read about it in the mainstream media, that FBI agents have been involved in helping to incite the riots we do not read about taking place in many cities around the country like Seattle and Portland. It is also said that it was FBI agents who opened the Capital doors and invited in Trump supporters who were demonstrating peacefully on January 6, 2001 so that they could arrest as many as possible and call them violent protestors. You can read “The Deep State” by Alex Newman to learn how many departments of our government are actually run by individuals who are controlled by leaders of the New World Order and are totally devoted to destroying personal individual freedoms, Democracy and Capitalism. There have been stories that the IRS deliberately targeted conservative people and both the IRS and FBI have targeted and raided homes of people who opposed government policy in the media. We also do not elect the Chairman of the Federal Reserve Bank who has more control over our economic system than anyone else in government. I do believe that these things have happened and continue to happen because government has become way too large and runs counter to its original intention. The CIA, FBI, IRS, the Federal Reserve Bank and even the Department of Equal Opportunity are all not used today for the purpose for which they were intended. They are all being used today to further the intention of our government to gain more and more control over our personal lives and wealth and to undermine our freedom and independence.
Size of government certainly to some extent has to be determined by the role that our government is intended to play in our society. Kingdoms still exist on Planet Earth. The role of government in a kingdom or in a communist country would certainly be different than what it is intended to be by our forefathers who created our republic to support our democratic way of life and permit capitalism to develop and grow here and improve the lives of everyone on Planet Earth. In my opinion, the role of government is to determine the needs of the people and the resources we have available to meet those needs, and then to create the commercial and economic system necessary to provide those needs for its people. The resources we do not have we must trade to get. No other trade should be encouraged unless it is in the best interest of the people of this country. In the last twenty odd years, our government has agreed to trade pacts which have sent many millions of the best American jobs to foreign countries. Everyone knows that nothing we use and practically nothing that we eat is produced or grown in this country anymore. The loss of those jobs has been devastating to our economy. This is important to this discussion because the most important determinant to the size of our government has to be the size of our economy.
Government does not have its own money just because it is the government. And it certainly should not be printing as much money as it wants or feels it needs. Government borrowing money has an incredible effect on the economy and is the primary cause of the practically runaway inflations we had in the 1970s and we are experiencing again today. Any economist will tell you that such runaway inflation has the capability to entirely destroy our economy. Most economists believe that raising interest rates by the Federal Reserve Bank can cure this abnormality. I believe that is not true. Inflation is caused by an imbalance of supply and demand in our economy. Raising interest rates could very well reduce both demand and supply and cause recession. The answer to inflation must include reducing demand and increasing supply at the same time. To increase supply, which is the most important element of this formula, we must reduce taxes on business and re encourage the supply chain to come back to the United States. To reduce demand, we must reduce the capability of our government to borrow money and give it to people to spend at a time when we have no capability to produce the goods needed here in this country and have lost control over our supply chain anyway. Everything we need comes from overseas. So while the government has been growing ever larger over the last fifty or more years, inflation aside, our economy has grown much smaller as more and more jobs have been sent overseas.
We need to consider that every dollar that a government pays to its own employees or to its retired employees or uses to fund the military to protect us has to be generated by our private economy and taken by the government as taxes. It would make sense for the government to borrow money to build infrastructure to support our economy as long as it is eventually gets paid back so that it is later available again to rebuild or improve infrastructure. Our government has been fond of giving money away to foreign countries and conducting wars for many years as well as creating many other programs which are very costly and not necessarily beneficial for Americans. It may have been arguable in earlier years that perhaps these programs were affordable, but that is certainly not true today. The United States is broke, thirty trillion dollars in debt and getting broker every day. There is no question that we cannot afford what our government is spending today. I think that the first year of the Biden administration resulted in about $3 trillion in spending over tax income creating additional borrowing. During the Obama administration which never even created a budget, the government overspent tax income by about $1.5 trillion every year despite the largest tax increases in the history of our country. Higher taxes and cost of living by inflation also encourages additional jobs moving overseas to other countries and will further destroy our economy. Taxes in the United States are certainly high enough to support the minimal economy we have left in this country. The government likely takes in about $3.5 trillion in taxes annually. That is only at the federal level. There are many other jurisdictions that tax us depending on where we live. And they all also borrow. There should never be a need for any government in this great country to borrow any money that will never be paid back and likely will probably just be used to create new programs and make the government larger.
I am suggesting a new economic principle which was not taught when I went to college and likely has never been taught at all. We need to establish a rule for how large the total government in the United States can be as measured by a percentage of the economy and this should never be exceeded. Borrowing can never be paid for by higher taxes and no borrowing should ever be allowed that is not scheduled for payback over time so that it will become available again for future needs. Our government would have us believe that when it borrows money and gives it away or spends it, it is stimulating the economy. Nothing could be further from the truth. Borrowed money given by the government to people to spend helps the people you give it to temporarily, but it provides no incentive to the supply side to increase production especially since nothing is produced here and we have lost control over our supply chain anyway. We all know it also increases inflation. When government spends tax dollars, it does divert the money which would otherwise be used in the economy for different purposes, but it is at least spending money that was produced in the private economy and not created by borrowing.
It is true that sixty or seventy years ago when I was young, there were only 180 million people in the United States. Today there are about 330 million. Government does have to be larger to support a larger population. The problem is that our economy is not larger than it was fifty or sixty years ago. The numbers of dollars are larger, but inflation has to be excluded. We are not producing or growing more things in this country now than we were then. Especially not as it relates to population growth. That is why we have an economy that is 70% retail. The fact that our economy is only 30% non-retail tells us by definition that demand will always exceed supply as it relates to our domestic economy and we will always be on the verge of economic destruction from inflation and dependent on other parts of the world for the things we need. It is perfectly obvious that we do not have enough energy which is contributing substantially to inflation at the present time when everyone knows we have it here, but refuse to produce it. It may have been a bit idiotic to deliberately ship all our jobs overseas but not build new ports to bring additional supplies in from foreign countries. We developed new industries dependent on chips but never built new plants here to develop and build our own chips. Government in the United States has very definitely grown too large, lost its purpose and is contributing in so many ways to the total destruction of our once great economic system. Growth in size of government and government borrowing is not limited only to the United States. I believe that there is likely not one government left on Planet Earth which has not grown so large that it can no longer be paid for by its local economy. In the United States, I have read that, for many years now, spending by the federal government alone exceeds 25% of the total gross national product. If we add spending by all of the states and municipalities, only God knows how high the number actually is. In my opinion, spending by governments at all levels is dramatically too high and causing economic destruction if it exceeds 20% of the gross national product of the nation. Even at that level, it challenges my imagination to understand how the local economy can support it.
What changes are required in our country and all others in order for us to be able to say that we all have conservative governments which espouse economic principles that have the best interest of their citizens at heart? Total taxes cannot exceed 20% of the gross national product of the country. There is no reason why any government needs more than that level of spending to support itself and the programs the people can afford. No borrowing of any kind should be permitted for money to be used for daily activities of government. In other words, no deficit spending. A plan should be available for paying back all government spending on infrastructure so that the borrowing will be available again later for rebuilding or additional infrastructure. In our democratic society, government should never be allowed to own any business or private capital. Greater limits need to be placed on the Federal Reserve Banks. These banks were created specifically for the purpose of assisting the economy in times of need. They have become controllers of certain aspects of our economies and their activities substantially exceed their original intention. Federal Reserve Banks should not buy government bonds or bonds of private companies thereby lending money to government or acquiring ownership of capital. If government wrongfully borrows money to give to people to spend for which supply is not available and causes inflation by doing so, the Federal Reserve Bank should not raise interest rates in an attempt to correct the problem. Raising the interest rates may cause reduction in both supply and demand as far as we know and cause recession which does normally occur at these times. Rebalancing supply with demand is the correct answer which is caused by lowering taxes on business and making more capital available at lower cost to suppliers in our own domestic economy so that they can rebuild supply to meet the increased demand here at home where it is dependable.
Conservative economics has been dead not only in our own country but worldwide for so long that I do not know if we can ever recover from the damage. We are so fond today of talking about higher taxes on the wealthy. What will happen if government borrowing reaches the point where the wealthy no longer have the capital to buy the debt? If governments default, will all working people who have retirement accounts holding 40% of their assets in government bonds lose almost half of their retirement funds? I am not alone in predicting substantial negative outcomes of present government policies. Most economists and financial analysts know of these dangers. Gold and silver used to be the inflation hedge that people would invest in to avoid losses in times like these. Unfortunately, a great many people have gone to crypto currency assets instead. This may also prove to be a mistake. After the fall of the Roman Empire, the world faced 400 years of Dark Ages. Our history tells us this. I continue to hope that reality will return to our leadership. If it does not, I fear that Planet Earth will be faced with the possibility of another 400 years of future self-inflicted Dark Ages.