1/22/24 How the Government Constructs Positive Economic Data, Its All Made-Up

Featured Story

Tyler Durden's Photo

by Tyler Durden

Via SchiffGold.com,

A startling disconnect as we edge closer to the 2024 general election: On one hand, so-called “experts” parade optimistic economic reports, but for the average American, the story is starkly different.

 In heated debates, economists squabble over whether the public is hoodwinking pollsters or if mysterious forces are at play.

Our guest columnist explains how the government is playing a smoke-and mirrors-game with the economy.

 It’s more subtle than making up numbers.

They’re pumping up GDP and job figures through hefty spending and hiring. Unlike the struggling private sector, the government can spend tax dollars and create deficit-financed jobs without having to prove their worth:

The following article was originally published by the Mises Wire. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

As the 2024 general election gets closer, Democrats and proestablishment pundits are growing frustrated with the American public for not feeling as good about the economy as the so-called experts say they should. The elitism of this view aside, it is true that traditional economic indicators are pretty good and that, at the same time, people aren’t feeling good about the economy.

Center-left economists have been locked in a debate over whether people are lying to pollsters about experiencing hardship in what is actually an excellent economy or are struggling due to mysterious noneconomic factors.

Others, like Paul Krugman, have decided to blame Donald Trump and his supporters—framing the widespread economic pessimism as a MAGA ploy to win back the White House—a theory Jonathan Newman showed is disproven by the very data Krugman cites.

So, what’s really going on here?

Daniel Lacalle laid the truth out well in his recent appearance on Radio Rothbard. In short, the government is making the economy look a lot better than it is.

Those who argue the economy is doing great usually cite economic growth as measured by gross domestic product (GDP) and various measures of the employment rate.

And while on the surface it seems to make sense to use these indicators to get an idea of how the economy is faring overall, there’s one big problem.

None make any serious distinction between private economic activity and government spending.

But there is a big difference between the two.

Government, unlike any other entity in the economy, can simply take money and resources from others to spend on things and hire people. Whether or not the spending brings people value is irrelevant.

It’s the private sector that’s responsible for producing goods and services that actually meet people’s needs and wants. So, the private components of the economy have the most significant effect on people’s economic well-being.

And according to Lacalle, the private sector of the US economy is already experiencing a recession. However, the high levels of government spending are artificially boosting the GDP above the technical recession threshold. Similarly, government hires have featured disproportionally in the recent seemingly positive jobs reports.

That’s why we’re seeing a divergence between the positive economic data in the headlines and the more negative sentiments of the American people. It’s not a mystery, and it’s not fake news or partisanship. It’s the government.

But don’t expect any politicians, center-left economists, or proestablishment pundits to admit it. All insist the government can boost economic growth and employment—especially during times of war. Take, for instance, the myth that World War II brought an end to the Great Depression. What happened back then is similar to what we’re dealing with now, albeit on a much larger scale. The government spent and hired enough not only to hide the destructiveness of the war, but also to make it appear like a good thing for the economy.

That is the same trick at play today. Because the government printed trillions of dollars to hide the economic damage of the covid lockdowns, a tremendous amount of malinvestment has locked in a major market correction. Now, as the economy begins to falter, the government is again spending and hiring on a massive scale to keep up the illusion of a strong economy.

But most Americans can tell something’s off. And they’re right.

Be gentle with your skin. Our soaps are kind to your skin and create a creamy, silky lather that is nourishing. Small batches are made by hand. We only use the best natural ingredients. There are no chemicals, phthalates, parabens, sodium laurel sulfate, or detergents. GraniteRidgeSoapworks

To Get 20% Of Use Coupon Code Bankster20 Or HNews20

Loading

Don't Miss

Financial Storm Clouds Gather

By StevieRay Hansen

Greed and a desire for riches are traps that bring ruin and destruction. “The love of money is a root of all kinds of evil,”…

Loading

Read More

Denninger: Economic & Civil Calamity Possible

By StevieRay Hansen

The Bible makes an even stronger statement about the love of money. What we have discussed thus far simply describes the horizontal level of the…

Loading

Read More

These Are The Banks Where The Fed’s $1.4 Trillion In Reserves Are Parked, Big Trouble-Birth Pains

By StevieRay Hansen

Over the past few days there has been much confusion over the repocalpyse that shook the overnight funding market, and just as much confusion over the definition…

Loading

Read More

‘Rogue’ Oil Trader Lost $320 Million On Wrong-Way Derivatives Bets

By StevieRay Hansen

 “Don’t let anyone deceive you in any way, for that day will not come until the rebellion occurs and the man of lawlessness is revealed,…

Loading

Read More

Schiff: The Next Crash Will Bring Down The Fiat Money System

By StevieRay Hansen

These same money changers were associated with others who engaged in shady business practices in the temple courts. Some sold sacrificial animals, overcharging people who did…

Loading

Read More
Posted in

StevieRay Hansen

In his riveting memoir, "A Long Journey Home", StevieRay Hansen will lead you through his incredible journey from homeless kid to multimillionaire oilman willing to give a helping hand to other throwaway kids. Available on Amazon.

Leave a Comment