After four years of misinformation and gaslighting, there is finally some potential for honesty, particularly when it comes to economic conditions. However, recent inflation data indicates that the situation is still dire, with the purchasing power of the U.S. dollar decreasing by 22 cents over four years. When factoring in other economic factors such as interest rates, shrinkflation, fees, and housing insurance, the reality may be even worse.
The root cause of inflation lies in the government’s excessive spending, which leads to an increase in the money supply and a decrease in the value of existing currency. The solution to mitigating inflation involves ending debt creation through spending cuts, curbing the actions of the central bank, and promoting economic growth through deregulation and agency elimination.
To achieve this, it is crucial for Congress to pass a balanced budget and for agencies to be eliminated to reduce costs. It is also important for the Treasury to stop the issuance of T-bills, thereby preventing the Fed from creating money to absorb excess spending.
While cutting the budget may have political implications, it is necessary to prevent further economic deterioration. The Trump administration must act swiftly to address the economic crisis and manage expectations for recovery. Stability is key at this point, rather than a falling rate of money growth. By taking decisive action, the government can work towards stabilizing the economy and mitigating the effects of inflation. The wave of price increases may not be stopped completely for the next year, but it can be prevented from worsening and eliminated entirely by 2026. There is no need to worry about deflation at this point, as it could actually benefit American consumers.
To boost the American economy, Trump should focus on reducing regulations and eliminating government agencies, similar to what was done in Argentina. Tax cuts for both income and capital can also help stimulate investment. The key is to increase supply and create more jobs to counter inflationary pressures.
It is crucial for the Trump administration to act quickly and decisively to prevent further debt creation and money printing. By prioritizing economic growth through deregulation and agency elimination, Trump can not only improve the economy but also increase his popularity among his supporters.
Political success and economic rationality are not mutually exclusive. The Trump administration has the opportunity to achieve both by taking bold steps to spur economic growth.
Please note that the views expressed in this article are the opinions of the author and do not necessarily reflect those of The Epoch Times.
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