It is imperative for Trump to pop this toxic economic bubble once and for all. Our cultural discourse is at a critical cliff at the present. Nearly half of the country feels that socialism is the best direction for this country and it has been driven by Keynesian academics that GDP growth requires inflation and interventionist forces:
-more government spending
-more tax increases to ease our growing national debt and unfunded liabilities
– more low interest rate policy that will eventually end in a Japan-like scenario where negative interest rates are used to pay off the national debt.
This is simply catastrophic.
Austrian economics is unparalleled in its consistency. It is the only school of economic thought in which price signals are truly understood. Prices simply adapt to new environments. Natural deflation is consistent with capitalism itself and always makes living affordable for human beings. Wages should never have to rise to keep up with inflation because inflation is an interventionist policy that results in an unsustainable system. This is directly at odds with our move towards automation. When automation is implemented properly it should result in far greater productive efficiency. However, when paired with an inflationary environment automation is catastrophic as it creates competition with increasing wages due to inflationary pressure.
Trump is far from an Austrian economist but he understands principles that are essential to a surviving capitalist system. He understands that growing national debt is catastrophic and creates inflation. It is now up to him to connect the puzzle pieces and recover this system once and for all.