SCHIZONOMICS I: KEYNESIAN PROLAPSE AND JOE BIDEN'S AMERICA
this for you ██████.
ok wanna know why we have crazy inflation, several trillion in national debt and other economic ails? its not joe biden's fault (for once) rather the consequence of stretching the asshole of keynesian economics just a little bit too much. i preface this with the fact that i used to be a firm believer in keynesian economics until joe biden's america happened, but i digress. now what is keynesian economics? it is the idea that government spending (on literally anything, by the way) drives economic growth. This is true in both capitalist systems like the USA and communist shitholes like the former USSR. government spending drives economic growth by pumping money into the economic machine, causing economic growth. this money is then returned to the government as taxes, therefore netting to positive economic growth and no gain/loss in government expenditure. sounds good right? WRONG. see, a portion of this government spending ends up leaking into the wider economy, which means it's exchanged for goods and services rather than coming back to the government in the form of taxes. this is normal, and is why we had a ~2% annual inflation, its money that shouldn't be real (stimulus funds) becoming hard currency. this essentially means that the government is printing new money and straight up putting it into people's hands. now the problem is that the us government has been running a budget deficit since the fucking 1980s. deficit spending allows uncle sam to pump hella cash into the economy but because its deficit spending, this expenditure is NOT REAL because UNCLE SAM (just like my uncle with several thousand dollars of credit card debt) got bills to pay and owes a lot of money that he doesn't quite have BUT HE SAYS HE'LL PAY and he eventually does, so it nets to zero (in theory), which is good. now, accounting for that 2% inflation leakage, you get a consolidated debt that increases because it doesn't net to zero, and you get inflation and a ballooning debt obligation. to third world shitholes, this is a problem, but the good 'ol US of A got it figured out cause we owe all our money to a private, american bank. its like setting up a credit card company in your own house, and racking up bills knowing damn well you ain't gonna pay shit to your own company. anyway they ask for money every once in a while, but they also print money so its a bit weird to be honest. i don't quite understand the federal reserve. now the big problem is the pandmeic and donny trumps strip club experience (national). what happened was donny trump called j-pow and told him to stop the economy from imploding, and j-pow did the one thing that fixes the economy: pump trillions of deficit spending into economic stimulus. this is the equivalent of you taking out a $10,000 loan in cash, to throw money at strippers. also did i mention you have a mortgage, car payment, and student loan bills totaling to half a million dollars? yeah its bad, you shouldnt have done that but y'know, throwing fistfuls of cash at women is funny. this is what the government did, take out billions in loans from the federal reserve and then proceed to throw it around as stimulus checks and enhanced unemployment benefits during the pandemic. and it worked! the economy didn't fold. but here's the problem. you got a few billion extra dollars (that come from nowhere, by the way) and are supposed to return back to the fed into nowhere but that's not happening pal, that money's gone. the government ain't getting it back. its the direct equivalent of printing out money (what third world shitholes do) and is why inflation is so high now. we now have a national debt in the trillions, economic stimulus still (at least its infrastructure instead of throwing cash) and sleepy joe's america. overstimulating the economy lead to the collapse of keynesian economics as a model, since we're on the verge of economic disaster. it worked in 2008, it worked in the 80s, but it went too far in 2021 and it's not looking too good, im not gonna lie. I also have no solutions for this, because i'm not an economist. all I know is that keynesian economics' asshole has been stretched to the point of prolapse, and its gonna take a mighty effort to stuff it back in and get the nation back on track. Lets go Brandon, God Bless America.