The sudden economic lockdown of March 2020 was a shocking moment in history, halting the very core of economic activity worldwide. The goal of creating wealth through trade, investment, marketing, and innovation was suddenly put on hold in favor of combating a perceived health crisis. The initial two-week lockdown extended indefinitely until a vaccine was developed, causing the world economy to crash intentionally and forcefully.
Here are 10 observations on the aftermath of this attempt:
1. Labor markets have not recovered, with participation and employment ratios still below 2019 levels.
2. Stimulus checks were eroded by inflation, wiping out the temporary economic relief.
3. Retail sales and factory orders have not increased significantly, with inflation skewing the data.
4. Output has not significantly increased post-lockdown, despite claims of a rebound.
5. The data on inflation is manipulated. Despite official claims that the dollar has only lost 18 percent of its value over four years, this is not reflected in real-life experiences of rising costs. The Consumer Price Index (CPI) fails to accurately represent price increases by excluding various factors such as interest rates, insurance, taxes, and added fees. The data on health and home prices is skewed, presenting a distorted view of reality. It is possible that true inflation over four years is much higher than reported.
Trade blocs have formed but cannot save us from the consequences of disrupted global supply chains. The world is shifting towards spheres of political influence, impacting economic growth. Property rights have been undermined by widespread business closures, affecting the psychology of entrepreneurship. The debt crisis, including personal, corporate, and government debt, is escalating, exacerbated by falling real income.
Central Bank Digital Currencies (CBDCs) are being promoted as a solution for control and surveillance, with the potential for directed spending based on political priorities. Financial markets have been resilient in the face of economic instability, but this may not last indefinitely. After impacting prices and wages, the newly printed money flows into financial markets, causing a rise that is celebrated as positive news rather than simple inflation. However, it is important to note that the stock market does not directly reflect the overall economy. While this trend benefits investors and those with retirement accounts, it does not necessarily translate to improvements for wage and salary earners on Main Street.
The lockdowns implemented across the globe have resulted in a significant economic downturn, leaving many feeling less free and less prosperous. The hope for a return to normalcy in the near future has been diminished. Furthermore, there are concerns that official institutions are manipulating data to conceal the true extent of the economic impact.
Please note that the views expressed in this article are the opinions of the author and may not necessarily align with those of The Epoch Times. Please rewrite this sentence.
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