AMERICA IS IN TROUBLE
We are not confident that the future will improve any time soon and all signs point to continued decline.
The new Biden Administration has good intentions but lacks the understanding or experience to move the country in the right direction.
THE NEAR FUTURE:
The new administration has stated they will raise corporate taxes and increase regulations companies will continue to leave for cheaper less regulated countries taking jobs with them.
As the influx of unskilled illegal immigration floods the country low end wages will go down adversely effecting the most vulnerable in our society further increasing unemployment.
Increases in minimum wages will result in layoffs and increased workload on remaining employees. Fewer employees means longer lines and slower service. Wages will rise naturally only when there is a labor shortage driving wages upward.
STIMULUS WON'T FIX IT
Stimulus and Infrastructure money will provide a short term boost in jobs but once the money is spent all the jobs will go away leaving nothing but more debt that will burden our future growth. The result will be shiny new roads and bridges but no one will have a job or afford gasoline or money to buy new electric cars to drive them, increased taxes on gasoline, home heating fuel and wages to pay for it resulting in further contraction of jobs and increased inflation further hurting the most vulnerable. They will eventually crash the Dollar possibly leading to outright depression.
The Biden Administration is following a Keynesian economic policy that will not produce long term increase in productivity. Tax increases that will be needed to pay for it will burden most all businesses who will be forced to pass the costs onto the consumer. Higher income taxes that burden successful entrepreneurs from retaining capitol required to start new businesses. The end result will be fewer jobs, higher prices , higher interest rates and lower standards of living.
The only time that borrowing is viable is when you borrow to expand productivity. A business that borrows at 5% to build a new factory that produces profit at 30% is sustainable because the increased productivity can more than replay the borrowing netting positive long term sustainable growth. By promoting a pro business climate with low taxes and streamlined regulation international businesses relocate to the United States and existing Companies to expand and hire resulting in larger overall profits, boost to building and materials, long term jobs and higher wages resulting in More overall Tax income to pay for new schools, roads and bridges.