Saturday, May 18, 2024

The Age of the Free Money Democrat is Over

The current state of the union is so shockingly bad, it’s hard to focus on any one issue. Democrats control Congress and the presidency, so they own hyperinflation, skyrocketing gas and food prices, the border crisis, crime, the fentanyl and heroin crisis, American wealth destruction, defunding the police, the proxy war in Ukraine, trans insanity and promoting racism in schools.

In light of their extraordinarily dismal track record, one can only speculate as to why so many of these national races are so close. It seems impossible that the Democrat electorate could be so misguided they actually believe the fake “insurrection” is more important than inflation, or abortion on demand is more important than reducing the surging murder rates in major cities.

So, their loyalty has to be based on something else, and it’s not hard to figure out the dirty little secret that keeps the Democrat’s constituency intact.

Free money.

Throughout the course of modern history, Democrats have perfected the art of legally buying votes by confiscating money from individuals and companies and giving it to drug addicts, criminals, illegal aliens and sloths. When Democrats reached the limits of what they could reasonably steal and redistribute, they colluded with the Federal Reserve to simply print more money.

How the Democrats Became the Party of Free Money

Prior to 1964, Democrats embraced the American tradition of self-reliance and the idea that government does not exist to serve us. This was embodied in President John F. Kennedy’s most famous quotation: “Ask not what your country can do for you. Ask what you can do for your country.”

However, in 1964, President Lyndon Johnson unleashed a series of giveaway programs under the banner of “The Great Society,” which included the Economic Opportunity Act (welfare), the Elementary and Secondary Education Act, Immigration and Nationality Act, the Housing and Urban Development Act, Medicare and Medicaid among others. The Great Society should have instead been named The Dependent Society as Democrats embarked on what has become a 60-year experiment in grooming voters and creating a nation of sniveling dependents demanding ever more government assistance to achieve the status in life they believe they deserve.

As of 2014, the cost of Great Society programs was estimated to be upwards of $22 trillion, but the effects have been even more disastrous. Throughout major cities, where most of the programs are focused, crime is rampant, cardboard shelters for the homeless occupy entire city blocks and educational standards continue to decline.

And still, apparently, Democrats have learned nothing.

The Giveaway Frenzy

In fact, the demand for more free money giveaways has only accelerated. As the frenzy to see who could give away the most accelerated, progressives in the early 2020s climbed all over each other in an effort to be seen as the most generous, using the pandemic as the accelerant that turned the fire into a raging inferno.

In an effort to avoid an economic collapse from the damage caused by unnecessary lockdowns, Americans received three free money checks totaling $3,200 per person and $2,600 per child. Additionally, through a variety of programs, most notably the Paycheck Protection Program (PPP), the government gave another $394 billion to businesses. To be clear, $1,200 of the stimulus came from the pen of Donald Trump, but that was no doubt done at gunpoint under threat from the hysterical left, who claimed that without the lockdowns, we were all going to die.

For Democrats, the pandemic was a socialist wet dream come true. Now that the precedent was set, they rapidly moved to increase the cash giveaway programs and expand their reach. Rent moratoriums spread across the country, and some are still in place. For the first time, we heard serious discussions about “guaranteed income,” and “universal basic income.” Presently, there are over 50 cities with some form of guaranteed income program. Senator Bernie Sanders, a high-profile progressive leader, has proposed new legislation for free housing, free secondary education and free healthcare for everyone.

The Buzzkill that Spoiled the Democrat’s Free Money Party

Throughout 2020 and most of 2021, progressives and Modern Monetary Policy advocates rejoiced. The economy was smoking hot, unemployment fell to record low levels, and the stock market was rocking. People who could barely afford rent pre-pandemic didn’t have to pay the rent anymore, and with stimulus checks in hand, they loaded up on TVs, vacations and new iPhones. Yet, just as the call for more free stuff accelerated, a nasty fly in the ointment emerged.

The CPI in April 2021, came in at a scorching .82 percent, and peaked at .93 percent in June. The Fed was quick to call it a blip, assuring everyone the spike in inflation was “transitory.” However, by March 2022, with inflation running at an annual rate of 8.5%, the Fed could no longer ignore reality and began a rate increase cycle that has pushed the federal funds rate to 3.25 percent and mortgages to over 7 percent.

The Era of Votes for Free Money is Over

The wealth destruction and loss of purchasing power is felt by the American consumer every day when they go to buy groceries or fill up their gas tank. In fact, estimates suggest that rising prices will cost Americans $5,200 in lost purchasing power in 2022 alone. Perhaps worst of all, inflation shows no signs of abating anytime soon, so the Federal reserve is left with no choice but to engineer a recession to achieve demand destruction. For even the most partisan Democrat, the lessons are impossible to ignore.

Modern Monetary Policy is dead.

Keynesian economic theory is dead.

Massive free money giveaways are dead.

Perhaps, finally, Americans will wake up to the reality there is no such thing as a free lunch, and that true prosperity is earned prosperity.